Ctrip.com International, Ltd. (Nasdaq: CTRP), a leading online travel service provider in China, announced its acquisition of Trip TM, a four-year-old hyper-luxury vacation operator.

Ctrip.com, a leading online travel service provider in China, announces its acquisition of Trip TM on April 28, 2012. [Photo: China.org.cn / Wang Zhiyong]

The announcement was made at a press conference in Beijing on April 28, 2012.

"The strategic investment in Trip TM will help realize Ctrip's goal to bite half market share of the top-end tours in China," said Fan Min, CEO of Ctrip.

Ctrip launches hyper-luxury brand HHtravel to organize trips for high-fliers. After the acquisition, Trip TM brand will not be abandoned. Ctrip will run two brands strategy, Fan said.

The acquisition also means that Ctrip will become the biggest shareholder of Trip TM International Travel Agency, which is based in Beijing.

A hyper-luxury vacation usually costs around US$10,000, Fan Min explained.

Following China's booming economic growth, the number of China's rich, with an investment capability of 10 million yuan (US$1.6 million), now constitutes of around 590,000 families, according to a China Merchants Bank survey done in 2011.

You Jinzhang, CEO of the Ctrip's HHTravel, will be CEO of the newly formed company. Guo Ming, President and CEO of Trip TM, will serve as COO.

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