Travel service firms plan merger to create unified platform

Travel service companies Tongcheng Network, a unit of Tongcheng Tourism, and E-dragon Holdings Ltd (or eLong) said on Friday that they would merge to create a new travel platform called Tongcheng-Elong Holdings Ltd.

Ctrip.com, China's leading travel platform, which is a major shareholder in both companies, said the merger would help integrate its mobility and hotel resources under one umbrella. Tencent and Ctrip will become major shareholders of the new company after the merger along with other shareholders like Wanda and Ctrip-backed OceanLink.

Tongcheng currently deals with air tickets, hotel booking, train tickets and bus tickets while eLong focuses largely on the hotel business.