html The Q1 financial statements released by Ctrip Group on June 28 showed that the group’s net revenue for the quarter reached 4.1 billion yuan. Under the repeated epidemic situation, and Ctrip have given a good answer.
1. Ctrip Group’s 2022Q1 financial report highlights
1, net revenue was 4.1 billion yuan, remaining stable year-on-year
According to financial report data, Ctrip Group’s operating income in the first quarter of this year was 4.1 billion yuan, and its adjusted EBITDA was 91 million yuan. This data has returned to the same level as the same period last year. Since 2020, many domestic industrial fields have been under heavy pressure from the epidemic, and have experienced operating difficulties to varying degrees. The tourism industry, which is closely related to the flow of people, is the first to be affected and is one of the economic sectors under greatest pressure. It is not easy for Ctrip to still have the power to recover and grow under such pressure.
From the perspective of business structure, Ctrip Group’s four main business segments all performed very well in the quarter. What is particularly noteworthy is that the total revenue of the two major sectors, accommodation booking and transportation ticketing, which account for the largest proportion of revenue, even exceeded the level of the same period last year. Among them, accommodation booking revenue was 1.5 billion yuan, and transportation ticketing revenue was 1.7 billion yuan. The total of the two was 3.2 billion yuan, 100 million yuan higher than the first quarter last year. This shows that the goal of "strengthening market position and gaining market share" proposed by Liang Jianzhang, , the group's co-founder and chairman of the board of directors, is being achieved. The good performance drove the price of Ctrip Hong Kong stock to surge by 24%, injecting strong confidence into the market. Another aspect of
's performance data that deserves special attention is that the international business achieved a partial overtake of pre-epidemic levels in this quarter. For example, Ctrip Group's international hotel business performed outstandingly in the first quarter. Its hotel bookings on international platforms achieved an overall growth of up to 25% compared with the level in 2019 before the epidemic. On Trip.com, the group’s local air ticket business platform for overseas markets, the number of local air ticket bookings in overseas regions in this quarter increased by 200% compared with the same period in 2019.
In this quarter, the highlight of Ctrip's international business was not just the growth of overseas local business. Sales of entertainment products for Ctrip's overseas destinations also grew strongly. Data shows that the growth rate of this part of the business in the first three months of 2022 even reached a level of more than 3 digits. Ctrip Group's outstanding performance data in the first quarter has made the market more convinced that a virtuous cycle in which Ctrip's overseas and domestic businesses complement each other and promote each other has taken shape. Even under the pressure of the global epidemic, it has shown strong internal stability and driving force. .
2. Looking at Ctrip’s resilience from the 2022 Q1 financial report
This performance data shows that Ctrip is extremely resilient in both the recovery of revenue indicators and the maintenance of market share. This resilience is even more valuable in the difficult environment of the tourism market in the first quarter. Judging from the overall situation, under the consistent anti-epidemic actions from top to bottom, our country has originally achieved the stability and gradual recovery of economic operations in 2021. However, after entering 2022, the impact of sudden and repeated epidemics has once again presented the " The "black swan " situation has had a huge impact on the industry. The spread of local epidemics from remote provinces to the southeastern economic hub has once again triggered the introduction of a number of epidemic prevention measures to restrict the movement of people, putting severe pressure on the tourism industry.
Regarding this, Liang Jianzhang lamented in the conference call after the release of the financial report: "Since the epidemic, the tourism industry has continued to face challenges." Sun Jie, CEO of Ctrip Group, also used data to show the financial industry that the tourism market opened high and moved low in the first quarter, which had a major impact on corporate operations---in January and February, With the domestic tourism market showing signs of recovery, Ctrip's hotel booking business grew by more than 20% year-on-year, showing a good "high opening" trend. However, the repeated epidemics that began in March caused the market to quickly shift into a "lower" trend. According to data released by the Ministry of Culture and Tourism , amid the repeated epidemics, the total number of domestic tourist arrivals in the first quarter was 830 million, a decrease of 194 million or 19.0% from the same period last year. The tourism industry environment this quarter is complex and severe.
Faced with such a situation, Ctrip Group did not retreat in the face of pressure. Instead, as Liang Jianzhang pointed out, "continue to strengthen internal strength and respond flexibly in the first quarter, and promote domestic products, services and business efficiency in depth." Specifically. Generally speaking, Ctrip has done two major things: First, it further strengthened innovation and enhanced the attractiveness of travel products to consumers. The second is to pay more attention to multilateral cooperation among businesses, join hands with the industry to expand the market, and jointly promote the revitalization of tourism.
For example, in order to enhance user scenarios and respond to user needs for better services and discounts, Ctrip continues to improve its hotel value-added package products. Thanks to the concerted efforts of everyone, Ctrip’s innovative high-star hotel package products have covered more than 10,000 hotels. In the first quarter, this one product of Ctrip contributed more than 40% of bookings to participating hotels, bringing more growth to hotel partners. In terms of multilateral cooperation with merchants, Ctrip has taken greater steps this quarter. For example, by increasing the promotion of camping business, the number of camping sites signed with Ctrip has increased by 3 digits month by month, achieving continued growth in order volume and transaction volume. The ticket VIP products jointly created by Ctrip and well-known domestic scenic spots have achieved a 50% year-on-year increase in product output and transaction volume. Judging from the data, multilateral cooperation with scenic spots and merchants has directly promoted Ctrip's overall domestic ticket orders to achieve double-digit growth compared with 2019.
3. After surviving difficult times, Ctrip is about to usher in a better tomorrow
Throughout the first quarter, Ctrip took more active innovation and cooperation measures under the pressure of the epidemic, maintaining the resilience of corporate operations and laying the groundwork for the next step of resuming growth. Solid foundation. At present, the pressure of the global epidemic is gradually easing, and the tourism market has begun to emerge from the predicament and move towards a new track of overall recovery and growth. Ctrip, which is fully prepared, will also usher in a bright future. First, from a global perspective, more than 60 countries have announced the relaxation of entry and exit control measures to encourage the accelerated recovery of tourism and trade activities. The international tourism market has seen signs of rapid recovery. Especially in Europe and the Asia-Pacific region, the growth of cross-border passenger flow is quite obvious. This recovery trend has supported Ctrip’s overall international platform air ticket booking volume to increase by more than 270% year-on-year in the first quarter.
In the domestic market, as the epidemic prevention situation continues to improve, various regions are relaxing control measures related to the movement of people to varying degrees, creating conditions for the accelerated recovery of the domestic cross-provincial travel and local travel markets. According to data disclosed by Ctrip CEO Ctrip CEO Sun Jie, supported by the recovery of the general environment, the number of hotel reservations in Ctrip's South China and West China regions in the first quarter has exceeded the pre-epidemic level. The overall booking volume of domestic hotels has also exceeded the level of 2019. Generally speaking, the situation in the tourism market is quite optimistic. Both the international and domestic epidemics are easing. User confidence and willingness to travel will continue to increase in the second half of the year. Ctrip, which is fully prepared in all aspects, will usher in another wave of rapid growth. It's completely expected.
In this regard, Liang Jianzhang confidently pointed out in the financial conference call that Ctrip is "fully prepared to further cooperate with domestic and foreign destinations to strengthen its market position and gain market share." In terms of specific measures, Ctrip will continue to improve product experience and promote the recovery of growth in the domestic market under the guidance of the new tourism marketing strategy. On the other hand, it will strengthen the layout of overseas markets and strive to seize the opportunities of the global tourism recovery to achieve further development.
In China, Ctrip is adding more than 10 privilege upgrades to all members, including nearly 40 black diamond membership privileges. In addition, for the travel consumption of college students, measures such as moving the "student certification" entrance to the first screen of the air ticket booking interface have been taken to enrich the exclusive rights and benefits of student users, which is expected to further increase the number of users and user stickiness. Growth; in terms of content ecology, Ctrip has taken multiple measures to achieve a 140% month-on-month increase in daily user-created content, a 10% month-on-month increase in the number of KOLs, and a year-on-year increase of about 40% in average user content views, which will undoubtedly greatly promote tourism consumption intention.In the rural tourism sector, which national policies attach great importance to, Ctrip has continued to promote the rural tourism revitalization plan and has implemented the operation of 9 Ctrip holiday farms, expanding the space for sustainable development of the tourism economy in rural areas.
In the international market, Ctrip has deepened its close cooperation with overseas local merchants, scenic spots and reception units. For example, this year, Ctrip and its Japanese partner TMC have officially launched a joint effort to build localized solution capabilities in international regions, aiming to provide one-stop international business travel solutions to make travel convenient and convenient for overseas travel users. Consumption comfort has been further improved, promoting the steady development of the overseas travel market. As Liang Jianzhang emphasized, with the further lifting of travel restrictions, the recovery trend of domestic and overseas markets is expected, and the tourism industry still has great potential in the future. Ctrip also has great potential!
