Citigroup Maintains Sell on Ctrip.com

Citigroup has published a research report on Ctrip.com International

that commented on air ticket sales. In the report, Citigroup wrote, "Just as Ctrip's hotel booking business has been under pressure after eLong and other smaller OTAs offered cash rebates (eCoupon) for hotel room rates, its air ticket sales could be challenged by eLong's air ticket coupon program and Qunar's growing ticket booking volumes. According to Qunar's management, Qunar has become the largest air ticket distribution platform with booking volumes exceeding those of Ctrip. iResearch data showed that in 2011: 1) daily ticketing volume exceeded 90,000, up 35% yoy from 2010 (on our estimates), 2) Qunar accounted for 13% of total air tickets issued in China and 3) ticketing volume accounted for 50% of total air tickets sold online." Citigroup maintained its Sell rating and $11.40 price target on Ctrip.com, which is trading down 0.92 percent from Tuesday's $17.45 closing price.