Posted On 2014/08/23 By In Business, China Domestic, China Inbound, News, China Outbound, Internet, Mobile, Social Media With 651 Views

Qunar Mobile Revenues on the rise along with China Travel Boom

Qunar’s second-quarter revenue jumped as mobile revenue soared more than 500%. The Chinese travel company, which is majority held by Baidu, reported a 127% jump in Q2 revenue to $64.5 million. Analysts polled by Thomson Reuters were expecting $56 million.

Mobile revenue shot up 511.8% to $22.9 million, accounting for 35.5% of total revenue vs. 13.2% in the year-ago quarter. But gross margin narrowed to 73.6% vs. 78.2% a year ago. The company sees Q3 revenue growth of 90% to 95%.

As China’s rising middle class stokes competition among Asian travel sites, U.S. companies like Expedia have taken stakes in local firms. Expedia owns a majority stake in eLong, a direct hotel booking site for users in China.
Ctrip.com International is another competitor in China for Qunar. Earlier this month Priceline announced plans to invest $500 million in Ctrip to boost its holdings in the company as it looks to expand its market abroad.


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Sources:

Article: Investors.com

Qunar's second-quarter revenue jumped as mobile revenue soared more than 500%. The Chinese travel company, which is majority held by Baidu, reported a 127% jump in Q2 revenue to $64.5 million. Analysts polled by Thomson Reuters were expecting $56 million. Mobile revenue shot up 511.8% to $22.9 million, accounting for 35.5% of total revenue vs. 13.2% in the year-ago quarter. But gross margin narrowed to 73.6% vs. 78.2% a year ago. The company sees Q3 revenue growth of 90% to 95%. As China's rising middle class stokes competition among Asian travel sites, U.S. companies like Expedia have taken stakes in local firms. Expedia owns a majority stake in eLong, a direct hotel booking site for users in China. Ctrip.com International is another competitor in China for Qunar. Earlier this month Priceline announced plans to invest $500 million in Ctrip to boost its holdings in the company as it looks to expand its market abroad. Learn more in our Global Ready China Seminars Sources: Article: Investors.com

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About

Stefan

Stefan (from Austria, Europe) has been living, studying and working in China since 2010. Stefan has worked on several research, publication and consulting projects focusing on the China Travel Market. He holds two Masters degrees and is an expert on China Outbound Tourism, Marketing and Social Media in China. Stefan works with BMG on the Global Ready China Seminars as well as the Global Ready China News and related projects. He also has teaching engagements in the areas of eMarketing and Tourism Strategy.

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