Ctrip.com International (CTRP)
In addition to using social media and buying things online, Chinese consumers also want to travel. Indeed, the Chinese travel bug has bitten many in the new middle class, and feeding that bug is travel booking firm Ctrip.com International (CTRP).
Ctrip helps Chinese tourists book flights, hotels and vacations around the world. This industry is simply huge, with some 83 million Chinese spending more than $100 billion on travel last year, according to industry estimates. This trend is expected to continue growing well into the next decade, and at the center of this boom is Ctrip.com.
The company just reported a 92% rise in Q3 net income year-over-year — a metric fueled by a sharp increase in travel-package and hotel bookings. Adjusted EPS for the third quarter came in at 51 cents, well above the 41 cents per share Wall Street was anticipating.
As China transitions into a domestic-oriented economy, more money will be spent on travel — and at Ctrip.com.