China Internet Travel Overview
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Transcript of China Internet Travel Overview
![Page 1: China Internet Travel Overview](https://reader036.fdocuments.us/reader036/viewer/2022082916/54b7f7bc4a795939728b4825/html5/thumbnails/1.jpg)
AUGUST 2007AUGUST 2007
China Travel Overview
WILLIAM BAO BEAN
SOFTBANK CHINA & INDIA HOLDINGS
WILLIAM BAO BEAN
SOFTBANK CHINA & INDIA HOLDINGS
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China travel market and consolidator bookings
0
20
40
60
80
100
120
140
2001 2002 2003 2004 2005 2006 2007F 2008F0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
China spending on domestic tourism (US$bn)
China consolidator bookings as a % of total domestic tourism
SARS
Source: CEIC, SBCI, Ctrip, eLong
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Consolidator quarterly hotel commissions
Source: SBCI, Company reports
0
20
40
60
80
100
120
1Q032Q03
3Q034Q03
1Q042Q04
3Q044Q04
1Q052Q05
3Q054Q05
1Q062Q06
3Q064Q06
1Q072Q07
3Q07F
4Q07F
1Q08F
2Q08F
3Q08F
4Q08F
US$m
Ctrip eLong Other
Ctrip driving growthOther consolidators
gaining traction
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Consolidator hotel room night market share
Source: SBCI, Company reports
30%
56%
48%
34%
30%
23%24%26%
28%
14%16%
19% 21% 21% 20% 21%22% 23%23%
24%25% 24% 24%28% 28%27%26%
57%59% 60%60%
36%39%
43%45%
49% 49%51% 51%51% 51%52%
53% 54%
57% 57%54%
57%
15% 15%15%16% 17%
23%25%
26%26%27%31%
36%
42%
23%22%
20%16% 15%
0%
10%
20%
30%
40%
50%
60%
70%
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong % market share C-trip % market share Others % market share
Others
eLong
Ctrip
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Consolidator hotel room night market share
Source: SBCI, Company reports
12%12%13%13%11%10%10%11%
9%8%8%8%6%7%12%
10%11%10%
74%73%71%67%67%67%67%
64%65%66%65%62%63%
59%
73%73%74%73%
14%15%16%
20%22%23%23%25%26%26%27%30%
31%34%
17%16%16%15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong Ctrip Others
Ctrip
Other
eLong
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Consolidator online reach per million
Source: Alexa
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Consolidator metrics – customers
Source: SBCI, Company reports
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong CtripUnits: m
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Consolidator metrics – customer additions
Source: SBCI, Company reports
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong CtripUnits: m
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Consolidator metrics – customers from top cities
Source: SBCI, Company reports
40%
45%
50%
55%
60%
65%
70%
75%
80%
4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong Ctrip
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Consolidator metrics – hotel partners
Source: SBCI, Company reports
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong Ctrip
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Consolidator metrics – guaranteed allotment hotels
Source: SBCI, Company reports
0
500
1000
1500
2000
2500
3000
4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong Ctrip
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Consolidator metrics – % hotel bookings from guaranteed allotment hotels
Source: SBCI, Company reports
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong Ctrip
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Consolidator metrics – commission level paid by hotels
Source: SBCI, Company reports
12.5%
13.0%
13.5%
14.0%
14.5%
15.0%
15.5%
4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong Ctrip
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Consolidator metrics – commission level paid by airlines
Source: SBCI, Company reports
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong Ctrip
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Consolidator metrics – eTickets as a % of total
Source: SBCI, Company reports
0%10%20%30%40%50%60%70%80%90%
100%
4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong Ctrip
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Consolidator metrics - package sales
Source: SBCI, Company reports
0
2
4
6
8
10
12
14
16
18
4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
eLong CtripRMB:m
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SoftBank China and India Holdings Bodhi Investments LLC
Founded 2006 Strategic backers SoftBank Corp. of Japan and Cisco Target markets
China and India Selected South East Asian countries
Target industries Internet and software, telecom value-added services, converged media and
entertainment Target companies
Early stage and selected pre-IPO opportunities 5 investment professionals with offices in Shanghai and Bangalore
Investment decision process independent of SoftBank and Cisco