Trip.com Announces Joint Venture With TripAdvisor
Under the agreement, Trip.com will be the majority shareholder in the joint venture, while TripAdvisor will own 40%.
Trip.com Group Ltd. (Nasdaq: TCOM) announced it will set up a joint venture with the world's largest travel platform, TripAdvisor, in global expansion push.
Trip.com, China-based online travel provider formally known as Ctrip.com International Ltd., said in a statement after markets closed Wednesday that under the agreement, it will be the majority shareholder in the joint venture. TripAdvisor will own 40% of the company, which will be called TripAdvisor China. The joint venture will be managed through two affiliate companies, Ctrip Investment Holding Ltd. and TripAdvisor Singapore Private Ltd, according to the report.
"As we expand our footprint overseas, it is important that we offer not only seamless access to global travel inventory, but also quality reviews, opinions and pictures generated by other fellow travelers. We are very excited about this strategic partnership, which will undoubtedly further enhance the travel experience for our customers worldwide," Jane Sun, the chief executive officer of Trip.com, said in the statement.
This week, Ctrip carried out its name change to Trip.com in a move that the company said would better reflect the services and products it offers.
Incorporated in 1999, Trip.com provides its services through a number of mobile platforms and has over 30,000 employees. Noted as Asia's leading travel agency in July, Trip.com offers more than 2 million individual flight destinations, which connects to over 5,000 cities across the world.
Trip.com will report its third quarter financials on Nov. 13.
Shares in Trip.com remained flat on Thursday, closing at $31.80 per American depositary share.