Ctrip.com's fourth-quarter net revenue in 2011 was 926 million yuan ($147 million), up 18 percent year-on-year, although net profit for the period was 253 million yuan, down 16 percent, according to its financial report released Tuesday.
The drop in its profit margin dropped from the previous quarter's 41 percent to 35 percent.
Of the drop, 2 percentage points were due to sales and marketing expenses, 1 to 1.5 percentage points were due to free vouchers, and the remainder due to labor costs.