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View Hannah Hsu's Comments
Booking Gains With Chinese Online Travel
Here's an excerpt about UTA from a different article I wrote early June:
The Internet forever changed how travel companies do business. Online brokers shook up the industry with their flexibility and superior cost structures.
Big names such as priceline.com (NSDQ:
) and Ctrip.com International (NSDQ:
) dominate their domestic markets, but the market for e-travel continues to expand in emerging economies, and opportunities for smaller players abound.
China is a case in point. Investors have latched on to Ctrip.com as a play on China’s growing middle class, but it’s not the only outfit that shows promise.
One undervalued stock and overlooked company is Universal Travel Group (AMEX:
), a leading travel services provider in China. Many pigeonhole the firm as a smaller version of Ctrip.com, but its unique business model sets it apart from its better-known peer: 67 percent of its revenue comes from packaged tours; air ticketing accounts for 18 percent; and 13 percent comes from hotel booking.
The company continues to strengthen its product portfolio, brand name and geographic footprint.Universal Travel recently acquired three travel service providers for a total of $13 million. With lots of cash, little short-term debt and no long-term debt, the firm is primed to grow through acquisition.
By 2020 China is expected to become the world’s largest international tourism destination and the largest domestic tourism market; operating in such a rapidly growing region bodes well for future growth.
Jun 24 01:38 PM
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