China’s top online travel agent Ctrip.com expects its 2009 revenue to rise 10 to 15% if the country’s economic growth is in line with the government’s 8% target.
Jane Sun, the firm’s chief financial officer, said at the Reuters Global Technology Summit in Shanghai that the firm’s revenue growth in the second quarter so far is in line with its previous forecast of 10-15%.
Jane Sun said, ‘If GDP expands by 8% this year, we are confident of meeting our growth projection. But if the economy slips and swine flu spreads, the situation would be out of our control.’
Ctrip’s first-quarter profit beat Wall Street expectations, helped by a 9% rise in hotel reservation revenue.
Note that what might be thought of as the overseas opposition, Expedia, saw its net profit fall 23% in the first quarter and the total value of its bookings drop 11%.
Reuters reports Ctrip may also open an office in California, a popular tourist destination, to test the market, but would be cautious about expansion.
Jane Sun added that Ctrip would mostly expand its business organically and would not make any domestic acquisitions unless it could bring in new business opportunities.