Ctrip and Trip TM Partnership – Top online travel agency eyes high-end market
Ctrip.com, China’s largest online travel service provider which has 41.6 percent of market share in terms of sales revenue in 2011, is stretching its arms to high-end travel market by cooperating with Life TM Group, one of China’s top luxury service providers.
As part of the deal, Ctrip will invest into the travel sector of TM Group to form a new company, hhtravel.com, with a focus on high-end travel package.
“The high-end travel market is undoubtedly a gold mine in China with the enlarging group of rich people,” said Fan Min, CEO of Ctrip.
In March, Ctrip launched its around-the-world-in-80-days travel package which cost 1.01 million yuan. Fifteen vacancies were filled up within 17 seconds after the launch on the web.
In addition to the new firm, Ctrip announced a new world travel package of 50 days, which will set off on Jan 23, 2013.
Fan said TM Group’s broad client sources, combined with Ctrip’s experience in travel market, can generate the most competitive players in China’s high-end travel market.
Guo Ming, CEO of the Trip TM, said that the cooperation is aimed at establish an industrialized and standardized market for high-end travel.
“It will focus on providing a travel platform for people who have a high income and a willingness to experience more elite services during their travel,” he said.
According to reports, China has over 2.7 million people with personal assets of more than six million yuan. Sixty percent of them are willing to choose luxury travel.