Air ticketing

Ctrip.com International, Ltd. operates as a consolidator of hotel accommodations and air tickets in China. The company aggregates information on hotels and flights and enable its customers to make informed hotel and flight bookings The Company also sells packaged-tours that include transportation and accommodations. The company principally engages in the provision of travel related services including hotel reservation, air-ticketing, packaged-tour services, and Internet-related advertising and other related services.
The company targets its services primarily at business and leisure travelers in China. The company derives its hotel reservation, air-ticketing and packaged-tour revenues mainly through commissions from hotels (primarily based on the transaction value of the rooms), air tickets and packaged-tour products, respectively, booked through its services. The company operates as the consolidator of hotel accommodations in China. The company sold approximately 6.8 million hotel room nights in 2006. As of December 31, 2006, the company had room supplier relationships with approximately 4,400 hotels in China and approximately 16,000 hotels abroad, which covers various hotels. The company also operates as the consolidator of air tickets in China. The company sold approximately 6.4 million air tickets in 2006.The company’s airline ticket suppliers include major Chinese airlines and international airlines that operate flights originating from China. The company maintains a centralized reservation system and ticket fulfillment infrastructure covering its cities, destinations and airports of China. The company offers its services to customers through an advanced transaction and service platform consisting of its centralized toll-free, 24 hour customer service center and bilingual Web sites.
HOTEL RESERVATIONS: The Company acts as agent in its hotel-related transactions. Its customers receive confirmed bookings and pay the hotels directly upon completion of their stays, and in general, it pays no penalty to the hotels if the customers do not check in. The company contracts with hotels for rooms under two agency models, the ‘guaranteed allotment’ model and the ‘on-request’ model. In addition to the agreements that it enters into with the hotel suppliers, the company enters into a supplemental agreement with each of the hotel suppliers with which it has a guaranteed allotment arrangement. As of December 31, 2006, the company had contracted with approximately 4,400 hotels in China, of which approximately 2,200 hotels have guaranteed room allotments, allowing it to sell rooms to its customers.
AIR-TICKETING: The Company operates as a consolidator of air tickets in China. The company sells air tickets for major domestic Chinese airlines, including Air China, China Eastern Airlines, China Southern Airlines and Shanghai Airlines and international airlines operating flights that originate from cities in China, such as United Airlines, Northwest Airlines, Air Canada, Dragon Air and Lufthansa.Shanghai Ctrip Charming: Shanghai Ctrip Charming is a domestic company incorporated in Shanghai, the PRC. Shanghai Ctrip Charming holds domestic and cross-border travel agency licenses, air transport sales agency license and mainly provides domestic and cross-border tour services. Two senior executives of the company collectively control 98.2 % of the equity interest in Shanghai Ctrip Charming.