Trip.com Group

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Trip.com Group Limited
Formerly
Ctrip.com International, Ltd.
Public company
Traded asNASDAQTCOM
NASDAQ-100
IndustryTravel agency
Founded1999; 20 years ago (1999)
HeadquartersShanghai
Cayman Islands
Key people
Jane Jie Sun, CEO
James Liang, Chairman
RevenueIncrease US$4.5 billion (2018)
Number of employees
45,100 (2018)
SubsidiariesSkyscanner
Trip.com
MakeMyTrip
Ctrip.com
Websitetrip.com

Trip.com Group Limited is a Chinese provider of travel services including accommodation reservation, transportation ticketing, packaged tours and corporate travel management. The company owns and operates Trip.com, Skyscanner, and Ctrip.com, all of which are online travel agencies.

Trip.com Group holds an 8.4% stake in NASDAQ-listed Home Inns as well as a minority stake in the privately held BTC-Jianguo Hotels and Resorts. Trip.com Group also holds a 1.3% stake in the NASDAQ-listed Huazhu Hotels Group, owner of the Hanting brand.[1]

Founded in 1999, it is currently the largest online travel agency (OTA) in China and one of the largest travel service providers in the world.[2]

The company name was changed from Ctrip.com International, Ltd. in 2019.

History[edit]

The company was founded by James Liang, Neil Shen, Min Fan, and Qi Ji in 1999.[1][3]

The company was listed on the NASDAQ in 2003 through a variable interest entity (VIE) based in the Cayman Islands in a Merrill Lynch-led offering, raising US$75 million from the sale of 4.2 million American depositary receipts at $18 each. It appreciated 86% to close at $33.94 per ADR in its first day of trading. The stock traded at a peak of $37.35 on its first day of trading, making it the first company since the November 2000 IPO of Transmeta to double its price in the first day of trading.[3]

In 2006, about 70% of the company's sales came from just four cities in China: Beijing, Guangzhou, Shanghai, and Shenzhen.[4]

In December 2013, the company acquired Tours4fun for over $100 million.[5][6]

On August 6, 2014, Priceline.com, announced that it will invest $500 million in the company to broaden the companies’ options in China. Priceline and Ctrip, which have had a commercial partnership since 2012, will increase their cross-promotion of each company's hotel inventory and other travel services, the companies said today in a statement.[7]

In May 2015, Booking Holdings (formerly The Priceline Group) announced it would be investing an additional $250 million in the company.[8]

In November 2016, the company acquired Skyscanner for £1.4 billion.[9][10]

That same month, Jane Jie Sun became the CEO of Ctrip.[11] She had joined the company in 2005.[12]

On November 1, 2017, Ctrip acquired Trip.com, rebranding it as its global brand website.[13]

In September 2019, Ctrip completed a share exchange with Naspers and became the single largest shareholder of MakeMyTrip.[14][15]

On October 25, 2019 at its 2019 annual general meeting of shareholders, it was approved to change the Company name from "Ctrip.com International, Ltd." to "Trip.com Group Limited".[16]

Telecommuting study[edit]

The company is recognized as a proponent of scientific management in using rigorous data analysis in managerial decision making.[17] One example of this is the randomized control trial Ctrip ran on telecommuting. Given the uncertainty over the impact of telecommuting on company profits, it decided to rigorously evaluate its impact before making any management decisions. Ctrip conducted an experiment on 242 employees, sponsored by professors at Stanford University and Peking University. The experiment found that employees randomly assigned to work at home for 9 months increased their output by 13.5% versus the office-based control group, and their turnover rates fell by almost 50%. Adding in the savings from cutting office space telecommuting was found to have substantially reduced costs, leading Ctrip to roll this practice out across the firm.[18]

References[edit]

  1. ^ a b Flannery, Russell (March 29, 2010). "Ctrip's Remarkable Journey: China travel boom fuels hotel chain IPO". Forbes.
  2. ^ "Where The Big Four Online Travel Agencies — Expedia, TripAdvisor, Ctrip, & Priceline — Are Placing Their Bets". CB Insights Research. November 9, 2017.
  3. ^ a b Beltran, Luisa (December 9, 2003). "Ctrip.com IPO soars in first day". MarketWatch.
  4. ^ Liu, John; Ryan, Damien (May 29, 2006). "Ctrip May Buy Asian Companies as More Chinese Travel". Bloomberg News.
  5. ^ "Ctrip Reportedly Invests Over $100 Million in Overseas Travel Platform ToursForFun". TechNode. January 7, 2014.
  6. ^ Bischoff, Paul (January 7, 2014). "China's travel booking leader Ctrip acquires overseas tourism site ToursForFun for over $100 million". Tech in Asia.
  7. ^ Surane, Jennifer; Cao, Jing (August 6, 2014). "Priceline Investing $500 Million in Ctrip Travel Agency". Bloomberg News.
  8. ^ Ajmera, Ankit (26 May 2015). "Priceline to invest additional $250 million in China's Ctrip.com". Reuters.
  9. ^ "Ctrip Announces Agreement to Acquire Skyscanner" (Press release). Skyscanner. November 23, 2016.
  10. ^ Russell, Jon (23 November 2016). "China's Ctrip is buying flight search company SkyScanner for $1.74 billion". TechCrunch.
  11. ^ "Ctrip Announces Ms. Jane Jie Sun as New CEO and Director" (Press release). PR Newswire. November 16, 2016.
  12. ^ "Jane Jie Sun". Forbes.
  13. ^ Tan, Kenneth (May 5, 2018). "Ctrip launches new global brand Trip.com, removes all references to the site being China-owned". Gothamist.
  14. ^ "Completion of Naspers share exchange transaction with Ctrip" (Press release). Naspers. September 5, 2019.
  15. ^ "Ctrip Announces Share Exchange Transaction with Naspers" (Press release). PR Newswire. April 26, 2019.
  16. ^ Schaal, Dennis (October 25, 2019). "Ctrip Name Change to Trip.com Group Is Now Official". Skift.
  17. ^ Garvin, David (January 1, 2012). "Ctrip: Scientifically Managing Travel Services". Harvard Business School..
  18. ^ Bloom, Nicholas, Liang, James, Roberts, John and Ying, Jenny "Does working from home work? Evidence from a Chinese experiment" Stanford Research Paper, February 2013.

External links[edit]