Benzinga | Jun 1, 2021 08:31AM EDT

Tripadvisor And Trip.com Expand Partnership, Including New Commercial Arrangement And Waiver Under The Governance Agreement

Trip.com Group Limited (NASDAQ:TCOM) ("Trip.com") and Tripadvisor, Inc. (NASDAQ:TRIP) ("Tripadvisor") today announced an expansion of the strategic partnership first announced in November 2019, including a new commercial arrangement and waiver under the Governance Agreement.

Trip.com and Tripadvisor have agreed to expand their strategic partnership to include Tripadvisor Plus. Initially, Trip.com will provide access to preferential pricing on at least 10,000 properties to benefit the Tripadvisor Plus offering, Tripadvisor's new, direct-to-consumer subscription service. This collaboration, to be launched later this year, is expected to be expanded over time.

Concurrently, Trip.com has been granted approval under the Governance Agreement to sell a portion of its holdings in Tripadvisor, which at April 16, 2021 consisted of approximately 6.95 million shares, to meet its corporate needs. Sales by Trip.com are expected to occur in multiple tranches throughout 2021. Trip.com has relinquished its contractual right under the Governance Agreement to nominate a director to the Tripadvisor board of directors, which position has been held by Trip.com Group CEO, Jane Sun. As an indication of the commitment to the ongoing relationship between the companies, Ms. Sun will continue to serve on the Tripadvisor board, subject to the typical shareholder voting process.

Ctrip Investment Holding Ltd., a subsidiary of Trip.com and Tripadvisor's subsidiary, Tripadvisor Singapore Private Limited, will continue to partner on their joint venture that serves travelers throughout mainland China.

"We continue to value our strategic partnership with Trip.com, inclusive of our joint venture in China, and appreciate Jane's ongoing contributions to our Board," said Stephen Kaufer, president and chief executive officer, Tripadvisor. "We are pleased to deepen our relationship through Tripadvisor Plus. We are excited about the initial launch, and we look forward to expanding Trip.com's presence on our platform over time."

"Tripadvisor remains a great partner for Trip.com," said Jane Sun, CEO of Trip.com Group. "We are very excited about continuing this strategic partnership, which will undoubtedly further enhance the travel experience for our customers worldwide."