On June 28, 2022, Ctrip Group (NASDAQ : TCOM and Hong Kong Stock Exchange: 9961) announced its unaudited financial results for the first quarter ended March 31, 2022. The financial report shows that in the first quarter of 2022, Ctrip Group’s net operating income was 4.1 billion yuan, which was consistent with previous years and a 12% decrease from the previous year, mainly due to the repeated impact of the domestic epidemic. During the same period, the net loss attributable to Ctrip shareholders was 989 million yuan, turning from profit to loss year-on-year (profit of 1.8 billion yuan in the same period last year). The month-on-month loss increased, and the adjusted EBITDA was 91 million yuan. As of midday, Ctrip Hong Kong stock was trading at HK$202.8, an increase of 2.58%.
Affected by the fluctuations in the epidemic since the beginning of the year and in mid-to-late March, Ctrip's domestic business was under severe pressure in the first quarter, showing a trend of highs and lows. From the perspective of main business, revenue from accommodation booking is 1.5 billion yuan, revenue from transportation ticketing is 1.7 billion yuan, revenue from tourism and vacation business is 124 million yuan, and revenue from business travel management business is 222 million yuan. Nandu reporters noted that among them, only transportation ticketing revenue increased by 10% year-on-year, which was driven by the recovery of overseas air ticket business. Other business incomes all declined year-on-year, especially the tourism and vacation business operating income experienced the largest year-on-year decline, with a drop of 27%.
"Since the epidemic, the tourism industry has continued to face challenges." Liang Jianzhang, co-founder and chairman of the board of directors of Ctrip Group, said that the global market is recovering strongly, but the outbreak of the domestic epidemic in March affected many regions and greatly inhibited tourism. Industry performance. "In January and February, our domestic hotel bookings were better than the market performance, with a year-on-year growth of more than 20%."
Since the outbreak of the epidemic, although the strong recovery momentum of the domestic tourism market has been significantly suppressed, it has also given rise to local and peripheral tourism, etc. New market consumer demand. In order to maximize the recovery of tourism, various travel platforms continue to work with merchants to innovate product forms, such as deepening local consumption, enriching hotel and catering business, expanding the consumption potential of vertical formats such as self-driving tours/camping, and strengthening diversified cooperation.
According to disclosures, throughout the first quarter, Ctrip’s domestic hotel bookings were close to the same period in 2021. The proportion of high-star hotel package orders increased by more than 30% month-on-month. Package products contributed more than 40% of orders to participating hotels; air ticket bookings were also faster than Market recovery. In terms of tourism and vacation, during the reporting period, the number of camping sites signed for Ctrip's camping business increased by 3 digits month by month, and the growth trend of order volume and transaction volume continues to this day. Domestic ticket orders showed double-digit growth compared with 2019.
While domestic business growth is sluggish, Ctrip's international business is picking up.. According to incomplete statistics, about 60 countries and regions around the world have lifted all entry restrictions related to the new coronavirus epidemic. The financial report shows that the overall hotel booking volume of the international platform in the first quarter increased by approximately 25% compared with the same period in 2019. Among them, local hotel bookings in Trip.com's overseas markets increased by more than 200% compared with the same period in 2019, while markets such as Hong Kong, South Korea, Singapore , Malaysia , the United States, the United Kingdom and the United Arab Emirates grew faster.
In terms of international air ticket business, the overall air ticket booking volume on Ctrip's international platform increased by more than 270% year-on-year in the first quarter, of which the Trip.com brand achieved a year-on-year growth of approximately 400%. In overseas markets, local air ticket bookings under the Trip.com brand increased by more than 150% compared with the same period in 2019, exceeding the industry average in major markets. In addition, the order volume of entertainment products for overseas destinations also maintained a year-on-year growth of more than 3 digits in the first quarter.
Recently, as the domestic epidemic has been effectively controlled, epidemic prevention and control policies in major tourist source places such as Beijing and Shanghai have been adjusted, and the recovery of local tourism and inter-provincial tourism has accelerated. From the perspective of travel distance, destination recreation radius and consumption activity, compared with the Tomb Sweeping Day and Labor Day holidays, the tourism market during the Dragon Boat Festival holiday showed significant expansion. The industry generally predicts that June may be the turning point for the tourism economy to stop falling and rebound in 2022, and lay a stable and positive market foundation for the tourism economy in this summer and the second half of the year.
Ctrip Group CEO Sun Jie said at the earnings call that hotel bookings in South China and West China have exceeded the same period in 2019 in the past month. As the epidemic situation eases, Ctrip's domestic hotel bookings have also exceeded 2019 levels in the past two weeks.According to recent data obtained by Nandu reporters from Ctrip, the successive announcements of summer vacation schedules for primary and secondary schools across the country have driven the search for air tickets. In late June, overall domestic orders increased by more than 80% compared to the same period last month, and comparative demand was relatively high. In April, which was weak, it increased by nearly 130%, and the search popularity of cross-border flights has exceeded the level of the same period last year.
"The upward trend in the international market continued to strengthen in the second quarter." Ctrip's executive team released a relatively positive signal for the international business performance in the second quarter of this year. Based on the recent steady decline of the domestic epidemic situation, the National Health Commission's reaffirmation of the "nine points" requirements for epidemic prevention and control, and the almost full recovery of inter-provincial travel, Ctrip's various businesses are also gradually revolving around the big curve of the recovery of the tourism economy. Pick up. As travel restrictions are further lifted, the recovery trend of the Chinese market is expected.
Written and written by Nanduwan Financial News reporter Fu Xiaoling
