China-based online travel agency Ctrip has invested more than $200m in the operator of LY.com, a Chinese service that enables users to search for places of special interest in various geographical areas.
Ctrip made the investment in LY.com’s operator, Tongcheng Network, through its Shanghai Ctrip International Travel Agency affiliate. It is now the largest external shareholder in Tongcheng, though neither company disclosed the size of the stake acquired.
“We are very pleased to establish a strategic relationship with LY.com,” said Ctrip CEO James Liang. “We are increasingly positive about the potential of the travel industry in China. LY.com is the leading player in the local attraction ticket segment and we will support the independent operation of LY.com.”
Ctrip has made a series of investments in Chinese travel-focused companies in the past few months as it seeks to consolidate its position in the market. It co-led a $60m venture round for rental car service Yongche in December 2013 and acquired ToursForFun, a Chinese site that focuses on international travel, in a $100m deal the following month.