Travel agency sees profits grow 50%

Online travel agency Ctrip.com had a 50 percent profit growth year on year in the first quarter, it said on Thursday, thanks to an increase in young customers and overseas expansion. 

Operating profit reached 885 million yuan (US$130.1 million) as revenue jumped 21 percent to hit 8.2 billion yuan or US$1.22 billion, beating Wall Street analysts’ expectation of US$1.18 billion.

"We are pleased that our first quarter results reflected our faith in the outlook of the travel industry in China as well as our own ability to execute and embrace the changes in this industry," said James Liang, Ctrip’s executive chairman.

Ctrip's international businesses sustained robust growth in the first quarter. Revenue generated from international business increased to 35 percent of total revenue, thanks to outbound travelers from China, Ctrip said.

In the first quarter, Ctrip’s daily active user base reached 210 million, with the addition of more young consumers. 

In the second quarter, Ctrip expects revenue growth of 16 to 21 percent, thanks to booming tourism demand in China.