Ctrip.Com International Ltd (ADR) Earnings Boom, but Guidance Calls for Slowdown

The battle for supremacy among Chinese online travel agencies (OTAs) is over: Ctrip.com (NASDAQ: CTRP) is the clear winner. After market consolidation helped the company gain an upper hand, we're now seeing the leverage that comes with being the top dog in this growing industry.

The company's earnings release was proof that the network effect has taken hold -- as more Chinese citizens flock to the site, more airlines, hotels, trains, and buses are incentivized to list. And it leaves Ctrip in the driver's seat, able to command incrementally better margins as time moves on.

A train in Shanghai. Image source: Getty Images.

Source: Fool.com