eLong

About eLong

eLong, Inc. stands as a pivotal entity in China's online travel agency (OTA) sector, with a history of significant strategic shifts and ownership changes. Founded in May 1999 by Justin Tang and Richard Chen, the company initially set out to provide a range of online travel services, including information, accommodation booking, and ticketing. This positioned eLong as one of the earliest online travel companies in China to go public, listing its American Depositary Shares on the NASDAQ in October 2004.

The company's business model revolves around providing online and mobile reservation services for accommodations and transportation to both business and leisure travelers. Revenue is generated through commissions on hotel bookings and flight reservations made via its platforms, which include user-friendly websites and mobile applications supported by a 24-hour customer service center. A key milestone was the 2008 launch of 24/7 user services, a first for a Chinese OTA. In 2011, the company further embraced mobile technology with the launch of the eLong travel app.

eLong's trajectory has been heavily influenced by its major shareholders. For years, Expedia was its controlling shareholder, a relationship that provided eLong with access to a vast international hotel inventory. In May 2011, Tencent became a significant investor, acquiring a 16% stake for $84.4 million, signaling its first major entry into the travel market and a plan to integrate eLong's services with its massive user base. This period saw Expedia increase its stake to 56%. A major turning point occurred in May 2015 when Expedia sold its entire stake to a consortium including Ctrip (now Trip.com Group) for approximately $671 million, making Ctrip the largest shareholder. Following this, eLong was taken private and delisted from NASDAQ on June 1, 2016.

In a move to consolidate resources in the competitive Chinese travel market, eLong merged with Tongcheng Network in December 2017 to form a new entity, Tongcheng-Elong. This merger combined eLong's strength in hotel bookings with Tongcheng's focus on transportation ticketing, creating a more comprehensive travel service platform. The new company, Tongcheng-Elong Holdings Limited, successfully listed on the Hong Kong Stock Exchange in 2019. The combined entity leverages access to the vast user base of Tencent's WeChat and Mobile QQ platforms to drive traffic and bookings.