Ctrip.com International, China's No. 1 online travel services provider, yesterday posted a 52-percent profit increase in the first quarter, as wages increase fueling a surging demand for flights and hotel rooms.
The Nasdaq-listed firm expected its income will continue to grow, despite the effect of the earthquake in Sichuan.
The Beijing Olympic Games is also expected to provide a boost.
Ctrip's net profit was 99 million yuan (US$14 million) in the first quarter, beating the estimate of Morgan Stanley of 94 million yuan. Revenue was 340 million yuan, 47 percent growth from last year.
Ctrip achieved strong financial results despite the weather challenges (the snow disaster, for example) in the period.
The Shanghai-based company also gained new customers and business and strengthened brand recognition in the travel industry, Ctrip Chief Executive Fan Min said.
"Ctrip is becoming a household brand in China's travel services industry. More than 80 percent of Ctrip's hotel and air ticketing sales stem from repeat customers, which form a loyal customer base and provide a steady cash inflow," Morgan Stanley analyst Richard Ji said. China's tourism industry generates more than US$100 billion a year and accounts for 90 million jobs, according to the Pacific Asia Travel Association.
Ctrip expects to continue the year-on-year revenue growth of about 30 percent despite the disastrous 7.8-magnitude earthquake in Sichuan Province on Monday.
Ctrip.com said any fiscal impact from the quake had yet to be determined. Holiday makers' perceptions about safety may deter some from traveling, Ctrip's Chief Financial Officer Jane Sun said at an analysts' conference yesterday.
Sichuan, with China's biggest panda breeding center, Wolong, contributed to less than 10 percent of Ctrip's business.
