|
Joint Wisdom, a hotel data specialist in which Ctrip holds a controlling 69.92% stake, announced that the company has entered into a strategic agreement with Shiji Information, a PMS service provider in which Alibaba’s travel unit Alitrip has a stake. The two companies will cooperate on various hotel information sharing such as direct connect, PMS/CRS, revenue management, VAT control and PGS (Payment Gateway Services). Joint Wisdom, listed on the New Third Board, said in the announcement that the two companies would complement each other through sharing of information and resources to help step up digitalization of the hotel sector and tear down information barrier. Joint Wisdom expected that the company would broaden its coverage of the upscale hotels, not only to improve its hotel data, but also to connect supply side and demand side of the high-end hotel sector. Shiji Information has a distinctive advantage over Joint Wisdom on servicing upscale hotels and maintains a leading position in the five-star hotel market. The Shenzhen-listed company’s 2016 interim report showed that the company had more than 8,000 clients in a full range of star-rated hotels from high-class to low-range. Alibaba acquired a 15% stake in Shiji for RMB 2.81 billion in 2014. Joint Wisdom added a note in its disclosure that the announced strategic agreement only provides a framework and states the intention for the partnership, and details of the partnership are to be finalized in the contract to be signed in a later stage. Joint Wisdom and Shiji Information being competitors, and their investors Ctrip and Alitrip being rivals, it remains to be seen how long and to what extent their partnership will be ultimately. (Translated by Jerry) |
