Mangocity, the online tourism company under China National Travel Service (HK) Group Corporation, said on January 14 that it intends to take over 1Rest. The two parties now are in the stage of negotiation and the deal is expected to complete after the Spring Festival. The move is aimed at resource integration, so as to form a differentiated competition with Ctrip.
1Rest is mainly specialized in reservation of budget hotels, guesthouse and inn, differing itself most from the online travel service providers for medium-to high-end white collars and business travelers like Ctrip and Elong etc. It mainly targets the outdoor sports enthusiasts and students. Its network currently consists of 10,000 low-price hotels, especially budget hotels.
Insiders say the acquisition of travel agencies and establishment of Starway Hotel Alliance are both aimed at the effective and controllable offline resources. Compared with Citrip and Elong, Mangocity’s biggest advantage lies in the background of China National Travel Service Group Corporation, which has the completed industry chain including scenery spot, hotel, and transport etc, besides the travel agency resources.
