Boston, MA 04/03/2014 (wallstreetpr) – Being a one-stop shop for travel services means aiming to remain at the cutting-edge when it comes to deploying groundbreaking technology and returning value to shareholders. And Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) is trying to achieve both with utmost perfection. How else can the company prove its strength if not letting investors see the point in holding the stock and customers enjoying top security in their Internet transactions through the company?
The Chinese-based online travel services provider is seeking to build a good name for itself out there among customers, and also among investors. Talk about investors and the company just announced that it will sink significant amount of its existing cash to repurchase its American Depository Shares (ADS).
Fat repurchase program
The company said it will buy back its ADS worth $600 million using funds from its cash pool which include cash generated from bonds and operations. Repurchasing own shares comes as double-edged solution for the company in that it helps to return cash to investors while improving the value of remaining shares.
Shares of Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) currently trade in the range of $53.70 per share, having emerged from the low of $18.87 in the past one year.
Fixing Security Loophole
In the past week, Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) moved swiftly to fix a security issue with its system which placed credit card details of its users vulnerable to attack. The timely red flag was raised by an Internet monitoring platform. The company said that the loophole made it possible for fraudsters to obtain crucial user information such as card verification value (CVV), real name, credit card number and identification card number.
Although no incident was reported as having led to financial loss of users in relation to the loophole, Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) contact some of its users who could be at potential risk. The company asked the users to replace their credit cards and agreed to meet the cost related to the card replacement.
Ensuring top security for users is usually a priority for Internet services companies, especially those involving card transactions like in the case of Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP).
Being strong means it all
With the cutthroat competition in the online travel service business, it pays to protect customers as this might be the only difference between successful and failing companies. And as customers are placed at the forefront, commitment to return value to investors is never far from the table. So far, Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) has shown that it can get both right.