recovered and became the keyword in the tourism industry.
Beijing time On December 15, 2022, Ctrip Group ( Nasdaq : TCOM and Hong Kong Stock Exchange: 9961) announced its unaudited financial results for the third quarter ended September 30, 2022. According to financial report data, in the third quarter of 2022, Ctrip Group's net operating income was 6.9 billion yuan, increased by 29% year-on-year, and net profit was 245 million yuan; adjusted EBITDA was 1.4 billion yuan, a year-on-year increase of 164%. Performance has exceeded market expectations again.
split into various business lines, among the major sectors such as transportation ticketing, accommodation booking, tourism and vacation, business and travel management, advertising and finance, accommodation booking revenue was 2.9 billion yuan, a year-on-year increase of 32%; transportation ticketing revenue was 2.6 billion yuan, a year-on-year increase of 44%; tourism and vacation business revenue was 387 million yuan, a year-on-year increase of ; business travel management business revenue was 370 million yuan, a year-on-year increase of 9%. Behind the growth of
, policy support is inseparable from policy support. In June this year, the ninth edition of the epidemic prevention and control plan has helped boost the summer tourism market and is also constantly creating a new pattern of recovery in the tourism industry.
"As the global market continues to recover and the Chinese market is further loosening, we are standing at the turning point. The current upward trend is an opportunity for Ctrip to promote the internationalization strategy. We will continue to deepen our global market and be fully prepared for the tourism industry to flourish again." Liang Jianzhang said.
01
behind the performance exceeds expectations
According to the data released by Ministry of Culture and Tourism , in the first three quarters of 2022, the total number of domestic tourists was 2.094 billion, a decrease of 595 million from the same period last year, a year-on-year decrease of 22.1%. Domestic tourism revenue (total tourism consumption) was 1.72 trillion yuan, a decrease of 0.65 trillion yuan over the previous year, a year-on-year decrease of 27.2%. Among them, the number of domestic tourists in the third quarter was 639 million, a year-on-year decrease of 21.9%; the domestic tourism revenue in the third quarter was 0.55 trillion yuan, a year-on-year decrease of 25.68%.
But in the third quarter, with the bottoming out and the steady recovery of the overseas tourism market, Ctrip's performance exceeded expectations again.
"Domestic hotel reservations have basically returned to pre-epidemic levels." Ctrip official said. Reflected in the data, the financial report shows that in the third quarter of 2022, Ctrip's accommodation booking revenue was 2.9 billion yuan, a year-on-year increase of 32%; transportation ticketing revenue was 2.6 billion yuan, a year-on-year increase of 44%; tourism and vacation business revenue was 387 million yuan, a year-on-year increase of 9%.
It is understood that since the beginning of 2022, shortening of booking cycles and accelerating local booking growth have become the main features of the domestic hotel booking market. In the third quarter of this year, Ctrip Group's domestic local hotel bookings increased by about 60% compared with the same period in 2019. At the same time, as the policy "circuit breaks" of cross-provincial travel to counties, Ctrip's domestic long-distance hotel reservations increased by more than 130% month-on-month, which means that domestic long-term travel demand has begun to rise. Combining long and short, Ctrip's performance recovery has become an inevitable result.
On December 2, Ctrip held the "Go to Time and Gathering" 2022 Global Partner Summit in Macau, Liang Jianzhang, co-founder and chairman of the board of directors of Ctrip Group, said that tourism is the eternal sunrise industry, and the rapid melting of global travel restrictions is an example.
In June this year, with the release of the ninth version of the epidemic prevention and control plan, Ctrip finally waited for the opportunity to recover. In July shortly after the release of the plan, Ctrip Group's domestic hotel bookings increased by 20% compared with 2019, and also maintained positive growth performance in August.
Thanks to the rapid growth of local hotel bookings and the rapid restoration of long-distance hotel bookings, in the third quarter of this year, Ctrip Group's overall domestic hotel booking volume returned to the 2019 level, and domestic hotel booking revenue increased by 25% year-on-year. Against the backdrop of the year-on-year decline in domestic travelers in the third quarter, Ctrip's domestic hotel performance outperformed the market.
02
Multi-business layout
Confronting risks
According to Qichacha data, as of November 29, the establishment time was more than 10 years, and there were more than 83,000 tourism enterprises (enterprises, brands, and business scope containing the "tourism" keyword) with abnormal registration status, and only 48,000 registered status were normal. Against the background of limited market liquidity, individual efforts alone cannot obtain lasting survival motivation. The iteration and innovation of the ecological hub are bringing new opportunities to the industry.
It is understood that Ctrip air tickets have joined forces with many airports and airlines to create the "Hi Hocks" this year, and the ticket volume during the event increased by 27% month-on-month; Ctrip's "travel special offer" products have delivered discounts to more than 30 million cross-users in total, and have also brought about 10 billion + GMV to merchants.
As of now, Ctrip Business Travel has cooperated with 6 major ecosystems and more than 140 mainstream domestic and foreign manufacturers, providing corporate customers with more than 2,700 customized system integration solutions for ecological cooperation and 55,000 standardized system integration solutions. After statistics, each employee of the enterprise can save an average of 200 minutes of time cost per year after adopting the integrated solution.
▲Picture: Ctrip financial report data
In addition, It is understood that Ctrip air tickets have joined forces with many airports and airlines to create the "Hi Hocks" this year, and the ticket volume during the event increased by 27% month-on-month ; Ctrip hotel's "travel special offer" products have delivered discounts to more than 30 million cross-users, and have also brought about 10 billion + GMV to merchants.
3 carry degree fake this year, and the group tour service was upgraded, and the "free refund for 2 days before the trip" was launched. The group tour products with a positive review rate of more than 96% participated in the guarantee content; Ctrip Business Travel further expanded the depth of the supply chain and established a cooperative network with more than 200 countries and more than 600,000 hotels around the world. Currently, the number of business travel users has exceeded 34 million.
In terms of international business, Ctrip's financial report is still remarkable. In the third quarter, the number of air tickets and hotel bookings on Ctrip's international platform continued to maintain rapid growth. Among them, the overall air ticket booking volume of international platforms increased by more than 100% year-on-year, and the number of air ticket booking volume in the Asia-Pacific region increased by more than 400% compared with 2021. Compared with air tickets, compared with air tickets, the number of overseas hotel bookings on international platforms increased by 45% compared with the same period in 2019, exceeding the 2019 level for three consecutive quarters. Among them, local hotel bookings in overseas markets increased by 300% compared with the same period in 2019. In addition, in the third quarter of this year, Ctrip Group's overseas entertainment business transaction volume increased by 150% year-on-year, reaching a historical high.
According to data predicted by Euromonitor, the global online tourism transaction rate in 2022 increased compared with 2019, reaching 65%. Ctrip data shows that in the first 10 months of this year, Ctrip's inbound and outbound business travel air ticket orders increased by 245% year-on-year, the number of international air ticket segments increased rapidly year-on-year, and the number of international business travel hotel bookings increased by 531% year-on-year. Under the leadership of the recovery of business and tourism, the future recovery of inbound and outbound leisure travel is expected. The market believes that this has become an important factor in Ctrip's imagination of future performance rebound.
"The world is opening the door, and new policy guidance is conducive to the recovery of the tourism industry." said Sun Jie, CEO of Ctrip Group.
03
Rural tourism revitalization strategy
and 100,000 green travel products
In 2021, China's "dual carbon" strategy was implemented, and the issue of corporate social responsibility has been raised to an important level from the international to the domestic level.Against this background, the gold industry took active action. In December 2021, led by China Gold Association , the gold industry launched an initiative to fulfill its responsible gold mission and current social responsibilities; in December 2022, the China Gold Association, Shanghai Gold Exchange , and World Gold Association jointly launched the "2022 China Gold Industry Key Enterprises Social Contribution Report" to deeply implement the mission of the ESG industry.
Green travel is becoming the pursuit of more and more companies. While fulfilling their business vision, it is also important to pay attention to social responsibility.
It is understood that in order to create a new pattern of global tourism recovery, Ctrip Group recently launched the "Sustainable Travel" tag based on the "LESS·Sustainable Travel Plan" released in July this year, involving four major scenarios: "green living", "green flying", "green travel" and "green travel". As of December this year, it has covered more than 100,000 green travel products. In addition, as an important tool for Ctrip's "rural tourism revitalization" strategy, 15 domestic fake farms have opened to welcome customers.
Secretary-General of the United Nations World Tourism Organization Zurab Pololikashvili said recently that the tourism industry is facing important opportunities for transformation and upgrading, and we must seize the opportunity to build the tourism industry into a more inclusive, sustainable and resilient industry.
Standing at a new starting point for the recovery of the global tourism market, Ctrip Group recently released the "2023 Tourism Revitalization Plan A" and launched the "three-fold strategy" to empower ecological partners, planning and layout for the recovery of the domestic tourism market in 2023. 's "three-fold" strategy aims to "reconstruct the industrial ecology" by building 10 cultural and tourism industry incubation centers; create a thousand destination "reunited" experience through thousands of local guides and "reshape brand value"; promote trillions of tourism consumption through four-season marketing to "revitalize consumption confidence".
In fact, both overseas and domestic manufacturers currently regard ESG (Environment SocialandGovernance) as an important criterion. Today, the "2022 China Gold Industry Key Enterprises Social Contribution Report" was released for the first time. Chen Zhijun, head of industry expansion and marketing at the World Gold Association in China, said that since the United Nations officially established the Responsible Investment Principles Organization in 2006, the ESG concept has entered the global investment vision. In 2015, 193 UN member states promoted enterprises to pay attention to ESG through 17 SDG .
This also shows that ESG, dual carbon and green travel are becoming the general trend, and more and more companies are joining this action.
Author｜An 3号
edited｜Hu Zhanjia
operation｜ 号生正号｜号号号号号号号号（号号号号号（号号号号） 号号号号（ID: LingTai_LT）
