Ctrip -5.1% on Stifel downgrade; Qunar -4.9%

|By:, SA News Editor

Citing concerns about air ticket commission cuts, Stifel's George Askew has downgraded Ctrip (CTRP) to Hold.

Askew notes Air China is lowering its commission on ticket bookings to 2% from 3%, and considers it "likely that other Chinese airlines will follow Air China’s example, particularly the number one and two players China Southern and China Eastern."

He's assuming a 0.5% net reduction in Ctrip's air ticket commission, and has respectively slashed his 2014 revenue and earnings estimates by 2% and 3%.

Transportation ticketing revenue accounted for 39% of Ctrip's Q1 sales, and was up 43% Y/Y.

Qunar (QUNR) is following Ctrip lower. Peer eLong (LONG) might also get hit.