Chinese Travel Giant Ctrip Rejects Claims That Booking Trap Fees Total USD1.5 Billion a Year
Dou Shicong
/SOURCE : Yicai
Chinese Travel Giant Ctrip Rejects Claims That Booking Trap Fees Total USD1.5 Billion a Year

(Yicai Global) Oct. 9 -- Ctrip.com International Ltd. [NASDAQ:CTRP], China's largest online travel agency, has responded to claims that fees related to extra service packages added to online ticket bookings total USD1.5 billion (CNY10 billion) a year.

The travel giant dismissed the claims as libelous, stating that users can easily cancel unnecessary service options on the checkout page when booking.

An article on the matter, first published in April this year, resurfaced recently on Tencent Holdings Ltd.'s [HKG:0700] vastly popular social media app WeChat during this year's National Day holiday, prompting an official response from Ctrip, Chinese financial news outlet Hexun reported today.

The trap fees, automatically added to air and rail bookings during the firm's online checkout process, mainly relate to hotel coupons, car rentals and other products.

Most revenues related to the fees go to insurance companies, while Ctrip is thought to receive a total commission of USD150 million.

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Keywords: Ctrip.com International , Consumption Trap , Libel , Travel , TOURISM