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Although, the news from eLong does not specifically relate to digital marketing I am interested in this sector and want to make a note of how OTA's (Online Travel Agents) seem to be tracking. I was pleased to read that Chinese online travel website eLong Inc. reported its unaudited financial results for the fourth quarter and full year ended December 31, 2010.
Net revenues via eLong.com for the fourth quarter increased 23% to CNY124.1 million, compared to CNY100.9 million in the fourth quarter of 2009. Net revenues in 2010 increased 35% year-on-year to CNY481.9 million, compared to CNY357.9 million. Net income was still low and increased to CNY4.2 million, compared to CNY1.0 million in the fourth quarter of 2009. For the full year 2010, net income increased to CNY20.6 million, compared to CNY19.9 million in the prior year period.
As a note, Ctrip reported total revenues the their fourth quarter of 2010 of having revenues of CNY835 million, representing a 39% increase from the same period in 2009.
For marketers working with hotels, you may find some of these eLong stats interesting for your future presentations.
eLong reported that hotel room nights booked through eLong in the fourth quarter increased 39% to 1.7 million room nights compared to 1.2 million in the prior year period. Domestic hotel coverage network expanded 76% to 17,200 domestic hotels as of December 31, 2010, compared to 9,800 as of December 31, 2009. In December 2010, eLong acquired a 20% stake of Zhuna.cn, a Beijing-based, online provider of hotel booking services, with an option to acquire the remainder of Zhuna.cn in the future.
For Ctrip, they reported that hotel reservation revenues amounted to CNY360 million for the fourth quarter of 2010, representing a 31% increase year-on-year, primarily driven by an increase of 27% in hotel reservation volume and an increase of 4% commission per room night year-on-year. Hotel reservation revenues increased 3% quarter-on-quarter. For the full year ended December 31, 2010, hotel reservation revenues were CNY1.3 billion, representing a 36% increase from 2009. The hotel reservation revenues accounted for 42% of the total revenues in 2010, compared to 44% in 2009.
On the eLong income side of their business... they reported that from operations in 2010 they saw an increase of 321% year-on-year to CNY47.1 million, compared to CNY11.2 million. Operating margin in 2010 was 9.8% compared to 3.1% in the prior year. Net income increased to CNY20.6 million, compared to CNY19.9 million in the prior year period. Hotel room nights booked through eLong in 2010 grew 49% to 6.4 million room nights compared to 4.3 million in the prior year.
Source: eLong Financials & Ctrip
Written on Sunday, 20 February 2011 19:20 by Matt McDougall
