Booking.com and Agoda parent Priceline Group is to invest $500 million in China’s biggest online travel company Ctrip.
Priceline has also gained rights to buy Ctrip shares over the next 12 months and take its holding to up to 10%.
The two companies also agreed to expand a deal, struck two years ago, to cross-promote their hotel room inventory.
The move comes as demand for travel to and from China has been growing.
Priceline chief executive Darren Huston said: “Ctrip is the clear leader in online travel in China and we are pleased with the growth in Ctrip bookings through Booking.com and Agoda over the last two years.
“We are eager to build upon what has already become a great partnership, and thrilled to be able to offer our customers even more hotel options in China.
“Travel to and from China is growing rapidly, and through this partnership, we have an opportunity to further help the world experience China, and China experience the world.”
Ctrip chief executive James Liang said: “The Priceline Group is the global leader in online accommodations, and as such, a key strategic partner for us as we look to expand our global footprint.
“Both of our companies operate on the same philosophy to deliver exceptional products and seamless online booking experiences for our customers, and we are eager to jointly invest in improving the experience for travelers worldwide.”
According to its website, Priceline has a global portfolio of over 500,000 accommodations outside of the Greater China region.
Meanwhile, Ctrip boasts of having more than 100,000 accommodation options in China as a whole.
China – the world’s most populous nation – now accounts for nearly one in 10 tourists globally.
Chinese tourists are also the biggest spenders in the world, making it an even more attractive market for travel companies, the BBC reported.