Ctrip, the most successful service website for travelers around the nation, cooperated with the Beijing Capital Tourism Co. Ltd. to launch economy hotels in Shanghai by September, Ji Qi, president with Ctrip announced in Shanghai yesterday.

The economy hotels are branded as "Rujia" in Chinese (means feeling like home in English).

The first batch of four hotels were opened in Beijing with the prices less than 200 yuan per night and domestic businessmen being their main customers.

Rujia will expand its business through franchises, Ji said. The two or three star-rated hotels with 100-200 guest rooms and the charges no more than 300 yuan per night will be Rujia's top priority for franchises, Ji said. Location is also a top concern, he said.

The economy hotel market won't saturate within five years, Ji added.

The Beijing Capital Tourism Co. Ltd, one of the hotel groups with the largest assets around the country, or 16 billion yuan, have many high-end hotels under its wings such as Great Wall Hotel and Jianguo Hotel.

Ctrip is the largest hotel distributor in China, boasting the richest hotel client resources, with more than 1,500 hotels from 180 Chinese cities available to be booked via Ctrip.com so far.

"Though Rujia has several rivals in the local market such as Jinjiang and Xinya, there will be no direct competition as domestic businessmen will be our main customers," Ji said.

(eastday.com July 30, 2002)