Analysts In Favor Of Ctrip's 'White List' Of Third-Party Ticketing Agencies

Ctrip.com International Ltd CTRP recently announced it will cease offering traffic on their platform to high-risk, third-part ticketing agencies.

The move comes in response to pressure from airlines to better monitor the distribution of airline tickets, as they seek to penalize third-party agencies that cause cases of invalid air ticket purchases.

Ctrip and the airlines are reportedly creating a so-called “white list” of approved ticketing agencies to operate on their platform.

Bank of America analysts approve of this step. In a note to investors, they pointed out that 1) the agencies in question contribute a small percentage to Ctrip’s total tickets, and 2) those risky agencies will eventually be phased-out anyway in response to airlines’ firm stance on improver ticket sourcing.

The introduction of a “white list” is seen as long-term positive.

Bank of America maintains a Buy rating on Ctrip stock, with a price objective of $52, 33 percent upside from where shares closed Monday.