The travel industry is alive and well in China.
The country's leading travel portal and one of its fast-growing lodging chains delivered great quarterly results last night, and both stocks opened higher this morning.
Home Inns & Hotels
In the most encouraging aspect of Home Inns' report, RevPAR (revenue per available room, a key hotel metric) rose sharply, as higher occupancy levels magnified slightly increased overnight rates.
The good times should continue. Ctrip expects revenue to grow 30% to 35% during the current quarter. Home Inns is targeting a 23% to 26% gain on the top line. These year-over-year spurts may be decelerating from both companies' first-quarter surges, but they're clearly nothing to scoff at.
The strong results should also be good news for shareholders of rival budget hospitality chain 7 Days Group Holdings
Ctrip's 44% spike in air ticket booking revenue also bodes well for leading carriers China Southern
Travel portals, hospitality chains, and air carriers should all be toasting last night's reports from Ctrip and Home Inns. Both companies present a bright itinerary for growth, indeed.
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