China, US travel platforms team to expand global cooperation
Trip.com Group Limited, China's largest online travel agency, announced a strategic partnership with TripAdvisor Inc. to expand global cooperation, including a joint venture, global content agreements and a governance agreement.
According to a press release from Trip.com Group Thursday, Ctrip Investment Holding Ltd, a subsidiary of Trip.com Group, has entered into a joint venture with TripAdvisor's subsidiary TripAdvisor Singapore Private Limited. Trip.com Group will be the majority shareholder of the new joint venture entity and will contribute cash and market expertise. TripAdvisor will own 40 percent of the joint venture and will contribute a long-term exclusive brand and content license and other assets of its China business.
Both companies have agreed to share inventories in travel categories at the joint venture level. The joint venture will operate globally as TripAdvisor China, according to the press release.
Meanwhile, the two have entered into global content agreements providing for the distribution of selected TripAdvisor content on major Trip.com Group brands, including Trip.com, Ctrip, Skyscanner and Qunar.
Trip.com Group and TripAdvisor also entered into a Governance Agreement pursuant to which Trip.com Group will have a nomination right for one TripAdvisor, Inc. Board seat commencing upon the relevant regulatory bodies' approvals of the transaction.
"We are pleased to announce this strategic partnership with Trip.com Group to expand TripAdvisor's global reach and also help outbound Chinese travelers plan more meaningful trips," said Stephen Kaufer, president and chief executive officer, TripAdvisor.
"China is one of the largest and fastest-growing travel markets in the world. Trip.com Group, with its established brands and travel market leadership, is the perfect partner to help us achieve our long-term goals in the region," Kaufer said.
"TripAdvisor is a leading global travel platform and an ideal partner for Trip.com Group," said Jane Sun, CEO of Trip.com Group.
"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," according to Sun.