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Chinese Travel Website Lost CNY60 Million Over Two Years

Although it has been in operation for less than two years, Aoyou.com, a joint venture between China Youth Travel and Travelport, has reportedly suffered a loss of CNY60 million.

In April, 2006, CYT transferred 20% of its stake in Aoyou.com to Travelport, a subsidiary of Cendant Corporation, and from then on, Aoyou.com has been controlled by Travelport in name only, with CYS making all the decisions. A representative from CYT has disclosed that there are big disputes between Travelport and CYT regarding the management of Aoyou.com, which has served as one of the reasons for the company's continual loss.

CYT's 2006 annual report shows that the company made a total profit of CNY116 million and net profit of CNY91 million in 2006, while Aoyou.com suffered losses of CNY28.36 million in 2006 and about CNY31.72 million in 2005.

1 Comment

  1. Any info on elong, ctrip or yoee? elong appears to be struggling against ctrip because it has not as good reputation but I never hear anything about yoee which is rumored to be bigger than these two chinese travel websites. Do you have more info about this company?

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