Posted On 2015/07/08 By In Business, China Domestic, China Inbound, News, China Outbound, Media, Social Media With 380 Views

China’s Online Travel Sector finds big new Investment

LY.com, one of China’s many privately-run travel booking websites, announced that they have gained over CNY6 billion new investments from Wanda Culture Industry Group, Tencent Industry Win-Win Fund, and CITIC Capital.

As the lead investor, Wanda Culture Industry Group invested CNY3.58 billion in the tourism website.

For many years, investors in publicly-traded Chinese travel websites like Ctrip.com and eLong.com have assumed they had a large piece of China’s Internet travel market. But with investments in LY.com, the recent IPO of Qunar.com, the expansion of B2B travel opportunities with 51MICE.com and millions of dollars worth of revenue flowing through dozens of other large travel websites, investors are waking up to the very large opportunity in China’s travel sector.

Founded in 2004, LY.com already claims to have served about 30 million users in 2014, representing a growth of 100%. With the investment, Wanda Culture Industry Group and LY.com will begin a comprehensive strategic cooperation. Wanda’s tourism business will be able to access online channels to gain customer resources, and LY.com will gain tourism destination resources and increase its trading volume.

Wang Jianlin, chairman of Wanda Group, said that by investing in LY.com, Wanda’s tourism business will form a triumvirate structure, including a powerful online platform, an offline channel, and and large tourism destinations.

Wu Zhixiang, founder and CEO of LY.com, said that LY.com will begin its priority cooperation with Wanda’s travel agencies, culture tourism cities, and offline business resources. In the future, the company will enhance investments in brand, mobile, research and development, big data, and market expansion.


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Sources:

Article: China Tech News

LY.com, one of China's many privately-run travel booking websites, announced that they have gained over CNY6 billion new investments from Wanda Culture Industry Group, Tencent Industry Win-Win Fund, and CITIC Capital. As the lead investor, Wanda Culture Industry Group invested CNY3.58 billion in the tourism website. For many years, investors in publicly-traded Chinese travel websites like Ctrip.com and eLong.com have assumed they had a large piece of China's Internet travel market. But with investments in LY.com, the recent IPO of Qunar.com, the expansion of B2B travel opportunities with 51MICE.com and millions of dollars worth of revenue flowing through dozens of other large travel websites, investors are waking up to the very large opportunity in China's travel sector. Founded in 2004, LY.com already claims to have served about 30 million users in 2014, representing a growth of 100%. With the investment, Wanda Culture Industry Group and LY.com will begin a comprehensive strategic cooperation. Wanda's tourism business will be able to access online channels to gain customer resources, and LY.com will gain tourism destination resources and increase its trading volume. Wang Jianlin, chairman of Wanda Group, said that by investing in LY.com, Wanda's tourism business will form a triumvirate structure, including a powerful online platform, an offline channel, and and large tourism destinations. Wu Zhixiang, founder and CEO of LY.com, said that LY.com will begin its priority cooperation with Wanda's travel agencies, culture tourism cities, and offline business resources. In the future, the company will enhance investments in brand, mobile, research and development, big data, and market expansion. Learn more in our Global Ready China Seminars Sources: Article: China Tech News

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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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