Why Ctrip bought Skyscanner

by Welcome Chinese

categories China Market China News

tags china Chinese Ctrip market Skyscanner tourism travel Welcome Chinese 


In November, the travel industry was shook by the news of the swift sale of Skyscanner – the UK-based travel price checking website – to Ctrip, the biggest travel company in China. The price paid was €1.6 billion. But what have the analysts said about a move that, regarding a travel company that is not directly involved in the hospitality business, is among the most significant in China?

TECHNOLOGY ON SALE - As Skift and Jing Daily travel magazines pointed out, Ctrip was in need of a well-known meta-search engine, just as Expedia has Trivago and Priceline runs Kayak. After the merger with Qunar back in 2015, Ctrip reached a dominant position in China to project its commercial ambitions beyond the national borders. According to Bloomberg, Skyscanner’s profits hit €20.6 million during 2015, up 3% year-on-year. Ctrip's growth has been the consequence of years of phenomenal growth in Chinese tourism. By the way, Priceline is also an influential shareholder in Ctrip.

GOING GLOBAL - What remains unclear is whether Ctrip’s acquisition was targeted at new foreign customers, or instead designed to help Chinese tourists traveling abroad - only time will tell. Thanks to the deal, it appears natural that Skyscanner will soon be able to reinforce its competitiveness in hotels business, until today not as popular as flights. With its strong base in the UK, Skyscanner is second only to Qunar in meta-search traffic in Asia. There are reasons to expect the British company to become the "wooden horse" of Ctrip by entering the European market on the shoulders of a brand that is locally very well known. Are new acquisitions ahead?

Got Something To Say:

Your email address will not be published. Required fields are marked *



Recent Comments

Commented by Bill Frankish, 29.08.2017

We at the Candlewood Suites Calgary Airport North, closely located to the Calgary airport YYC, have been certified by the China Tourism Academy as having reached the JADE STANDARD of "Welcome Chinese" Certification. As such we greet each guest with a special Welcome envelope with Chinese information on our extended stay hotel. Guests receive slippers, tea, and have access to kettles and rice cookers at no charge. Some items are available in our little convenience store called The Cupboard, and there is a Chinese Super Market about 2 kilometers away which has a full selection of food items, commonly found in China, including live fish. Also at the same shopping area, an authentic Chinese Restaurant called The T. Pot , China Bistro From our location we have easy access to main highways to take you to Banff National Park, or the Royal Tyrrell Museum, an excellent Dinosaur museum. Candlewood Suites is an excellent location with cooking facilities which provides a great home base as you travel to various attractions in the area.