Ctrip.com International, Ltd. (CTRP, Financial) was by far our best new investment in 2015. Up 47% in the fourth quarter alone and 89% since we initiated the position in early 2015, the company is the leading online travel provider in China. It offers hotel, air, and rail ticketing, packaged tours and corporate travel management in China. During the year, Ctrip acquired the third largest online travel company eLong and the number two player Qunar, thereby consolidating its dominant market share position in the online travel sector. The company also deftly negotiated with industry powerhouses Priceline, Baidu, and Tencent which resulted in all three taking significant equity stakes in Ctrip. We believe China’s travel market will continue to experience rapid growth, in fact becoming the largest travel market in the world, over the next two years. In addition, we believe that the penetration of online bookings for travel in the country, which is less than 20% today, will continue to rise, making Ctrip an attractive long-term investment.
From the Baron Fifth Avenue Growth Fund Fourth Quarter 2015 Letter.
