Priceline has invested USD500M in Ctrip, China’s market leading travel website, while the companies have entered into a wide-ranging inventory.

Priceline has invested USD500M in Ctrip, China's market leading travel website, while the companies have entered into a wide-ranging (and game changing) inventory sharing agreement that cuts both ways.

And as part of the deal, Priceline has negotiated the right to take its share of the company up to 10% through open market share acquisitions over the next 12 months.

The investment came through a convertible bond but goes well beyond money.

It will "significantly promote tourism to and from China by allowing Ctrip's customers to reach The Priceline Group's global portfolio of over 500,000 accommodations outside of the Greater China Region, and The Priceline Group's customers to reach Ctrip's over 100,000 accommodations in the Greater China Region," Priceline said in a statement.