Trip.com Group Ltd. (Nasdaq: TCOM) announced it entered a joint venture with the world’s largest travel platform, TripAdvisor, for global expansion intentions.
The online travel provider, formally known as Ctrip.com International Ltd., said in a statement yesterday after the markets closed, it will be the largest shareholder in the agreement, while TripAdvisor will own 40% of the joint venture, which will be called TripAdvisor China. The joint venture will be managed through the two companies subsidiaries, 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 a statement today.
The move today follows Trip.com’s overseas expansion, with its launch on its Japanese site car rental services in July.
When the company reported its second quarter results in September, Sun said that the name change to Trip.com would better reflect the services and products it offers, and can also be remembered easily by users globally. She also noted Ctrip will remain focused on expanding in the global markets.
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 and host a conference call at 7:00 PM Eastern Time.
Shares in Trip.com remained neutral today, as it traded at $31.80 per American depositary share.