Priceline, the biggest online travel organization in the US, invested US$500 million in Ctrip(.)com International to widen the organizations' options in China.
Priceline and Ctrip, which had a commercial partnership since 2012, will expand their cross-promotion of each other's hotel inventory and other travel services, the companies said.
Ctrip, China's greatest travel site, is extending its hotel booking business as deals increment. Chinese revenue per available room rose 7 percent in May, the most elevated development since 2010. Ctrip's total sales climbed 38 percent to about US$276 million in the second quarter.
The partnership with Ctrip would spur both companies' growth, allowing them to access each other's portfolios, Priceline chief executive Darren Huston said.
It would bring to Priceline more bookings from Chinese travelers going abroad as well as increase the selection of accommodation and broaden the company's geographic reach within the country.
Priceline was under-represented in China when it came to accommodation, Huston said.
"It's like putting products on the shelf. If you put more products on the shelf, it enhances the value of the store," he said.
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Darren Huston
ContoDarren Huston (born 3 January 1966) is a Canadian businessman was the president and chief executive officer (CEO) of Priceline, Currently he is a CEO of BlackPines Capital Advisors. Residence - Amsterdam, Netherlands Nationality - Canadian Alma mate...
