Law & Policy

Ctrip.com Accused Of Illegal Operation

The local media are reporting that, in the beginning of 2004, the company Golden Holiday submitted a letter to various departments including the State Travel Bureau, General Bureau of Civil Aviation, China Travel Agency Association and State Administration of Industry and Commerce accusing Ctrip.com (Nasdaq: CTRP) of illegal business practices.

Golden Holiday accused Ctrip of being involved in providing an illegal travel and air ticket agent service. The claim is that Ctrip did not have the necessary qualifications to run a hotel booking, ticket and travel service, and was misguiding the public by claiming to be "the first travel establishment listed in the US," since it does not belong to the tourism industry.

The two sides are currently debating the issue and the court will later fix a date to hear the case.

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