NORWALK, Conn. and SHANGHAI, Aug. 6,
2014 /PRNewswire/ -- The Priceline Group Inc. (NASDAQ:
PCLN) and Ctrip.com International, Ltd. (NASDAQ: CTRP) today
announced that the two companies have expanded an existing
commercial agreement to strengthen their global partnership.
In addition, The Priceline Group agreed to invest $500 million through a convertible bond and Ctrip
has granted The Priceline Group permission to acquire Ctrip shares
in the open market over the next twelve months, so that combined
with shares convertible under the bond, The Priceline Group may
hold up to 10% of Ctrip's outstanding shares. Upon purchase of the
convertible bond, The Priceline Group will acquire the right to
appoint an observer to the Ctrip board of directors.
Expanding on the existing commercial relationship established in
2012, the global partnership between the world's largest online
travel group and China's largest
online travel company will significantly promote tourism to and
from China by allowing Ctrip's
customers to reach The Priceline Group's global portfolio of over
500,000 accommodations outside of the Greater China Region, and The
Priceline Group's customers to reach Ctrip's over 100,000
accommodations in the Greater China Region.
The new terms of the agreement build upon a history of
cross-promoting accommodations inventory between the companies. The
Priceline Group and Ctrip will offer their respective hotel
inventory to each other on an enlarged scale with more favorable
partnership terms, including an agreement to enhance promotional
efforts. Ctrip agrees to offer additional Priceline
Group brand services to its customers, including inventory from
rentalcars.com and OpenTable, and The Priceline Group also agrees
to promote Ctrip's other travel services to its customers,
including air ticketing and attraction ticketing services.
"Ctrip is the clear leader in online travel in China and we are pleased with the growth in
Ctrip bookings through Booking.com and Agoda over the last two
years. We are eager to build upon what has already become a
great partnership, and thrilled to be able to offer our customers
even more hotel options in China,"
said Darren Huston, President &
CEO of The Priceline Group. "Travel to and from China is growing rapidly, and through this
partnership, we have an opportunity to further help the world
experience China, and China experience the world."
"The Priceline Group is the global leader in online
accommodations, and as such, a key strategic partner for us as we
look to expand our global footprint," said James Liang, Co-founder, Chairman and CEO of
Ctrip. "Both of our companies operate on the same philosophy
to deliver exceptional products and seamless online booking
experiences for our customers, and we are eager to jointly invest
in improving the experience for travelers worldwide."
About The Priceline Group
The Priceline Group [NASDAQ: PCLN] is the world leader in online
travel, serving consumers and partners through six primary brands -
Booking.com, priceline.com, Agoda.com, KAYAK, rentalcars.com and
OpenTable. For more information, visit PricelineGroup.com.
About Ctrip
Ctrip.com International, Ltd. is a leading travel service
provider of accommodation reservation, transportation ticketing,
packaged tours, and corporate travel management in China. Ctrip aggregates hotel and flight
information to enable business and leisure travellers to make
informed and cost-effective bookings. Ctrip also helps customers
book vacation packages and guided tours. In addition, Ctrip
corporate travel management services help corporate clients
effectively manage their travel requirements. Since its inception
in 1999, Ctrip has experienced substantial growth and become one of
the best-known travel brands in China.
SOURCE The Priceline Group