SHANGHAI (Reuters) - China's top online travel agent Ctrip.com International Ltd (CTRP.O: Quote, Profile, Research, Stock Buzz) expects its 2009 revenue to rise 10 to 15 percent if the country's economic growth is in line with the government's 8 percent target, a senior company executive said on Tuesday.
The firm's revenue growth in the second quarter so far is in line with its previous forecast of 10 to 15 percent, Jane Sun, the firm's chief financial officer, said at the Reuters Global Technology Summit in Shanghai.
"If GDP expands by 8 percent 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," Sun said.
Ctrip's first-quarter profit beat Wall Street expectations, helped by a 9 percent rise in hotel reservation revenue.
Expedia Inc's (EXPE.O: Quote, Profile, Research, Stock Buzz) net profit fell 23 percent in the first quarter and the total value of its bookings dropped 11 percent.
Sun said China's domestic travel market was holding up relatively well due to Beijing's aggressive economic stimulus package and policy incentives to boost domestic consumption.
The firm's focus remains on the Greater China and Asia regions, but it is also preparing to offer services to travelers to North America once the H1N1 outbreak eases.
Ctrip may also open an office in California, a popular tourist destination, to test the market, but would be cautious about expansion.
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.
It also has no intention of hiking its 18.25 percent stake in Chinese budget hotel operator Home Inns & Hotels Management Inc (HMIN.O: Quote, Profile, Research, Stock Buzz).
"We bought into Home Inns because we are optimistic about the growth potential of the (budget hotel) sector. We have a big enough stake already and currently have no plan to raise it further," she added.
(Reporting by Fang Yan, David Lin and Edmund Klamann; Editing by Rupert Winchester)
© Thomson Reuters 2009. All rights reserved.
| Global Media | Nov 30 - Dec 03, 2009 | Media/Tech/Telco |
| India Investment | Nov 23 - 25, 2009 | Country Summits |
| Global Finance | Nov 16 - 19, 2009 | Financial Services / Exchanges |
| Health | Nov 09 - 12, 2009 | Health |
| Autos | Nov 02 - 4, 2009 | Autos |
