Ctrip sets up financial services division to tap into the travel finance segment
Ctrip announced it is setting up Ctrip Financial Services division that will jointly launch the Ctrip Traveler Rewards with MasterCard.
Ctrip announced it is setting up Ctrip Financial Services division that will jointly launch the Ctrip Traveler Rewards with MasterCard. Ctrip’s senior director Lan Tang said tourism finance is the future for Ctrip’s development as it taps into the powerful spending power of Chinese tourists when they are overseas. Ctrip Financial Services will offer currency exchange and tax rebate services.
The Ctrip Traveler Rewards will enable China’s MasterCard holders to enjoy overseas shopping incentives via Ctrip Financial Services. The platform offers users travel finance services. During the five-year partnership, Ctrip users can register for the Ctrip Traveler Rewards with their Mastercards, and will enjoy cash rebates from Ctrip Traveler Rewards’ merchants.
“Ctrip financial services leverage Ctrip’s strategy in capturing overseas travel consumption and its uniqueness and resources to engage in the partnership with MasterCard. The goal is to promote the Ctrip “travel +” strategy as demand in overseas consumption is rising, and improve and upgrade the travel financial services for outbound travelers and create a comprehensive tourism ecosystem,” Mr. Tang said.
Travel consumption overseas is expected to increase year after year as more destinations relax visa policies to woo Chinese visitors. Chinese visitors have been the top global shoppers for the last five years, accounting for 35% of total consumption worldwide.
“We are seeing more and more Chinese travelers spending abroad, with increasingly higher average per capita expenditure. In last few years, many overseas destinations have relaxed their visa policies to attract Chinese tourists, and this has led to higher shopping expenditure. However, Chinese tourists face problems with currency exchange and tax rebates when shopping overseas. There is no doubt a need to launch travel financial service. That’s why we set up Ctrip Financial Services and will launch more tourism finance services in the future,” Mr. Tang said.
Ctrip’s vice president and CEO of Ctrip Financial Services, Ting Ting Zhang, said that besides Ctrip Traveler Rewards, Ctrip Financial Services will offer travel consumer based on users needs and will quickly create a business chain of “travel +” consumption, starting with travel.(Translation by David)