Trip.com, a leading Chinese travel platform, released its financial results for the first quarter of 2024, showcasing remarkable growth amidst a recovering travel landscape.
Recovery Trends in China Travel:
In the first three months of 2024, China’s travel industry continued its upward trajectory, with Trip.com reporting substantial increases in both outbound and domestic bookings. Notably, outbound hotel and air bookings surged by over 100% year-on-year, while domestic bookings saw a commendable uptick of over 20%.
Financial Performance:
Trip.com’s financials for Q1 2024 reflected this resurgence, with a notable 29% year-on-year rise in revenue, reaching RMB 11.9 billion (US$1.6 billion). This increase was further bolstered by a 15% quarter-on-quarter growth, attributed partly to seasonal factors.
Revenue Breakdown:
Breaking down their revenue streams, Trip.com witnessed significant growth across various sectors. Accommodation revenue saw a robust 29% increase to RMB 4.5 billion (US$623 million), while transportation revenue climbed by 20% to RMB 5.0 billion (US$692 million). Additionally, package tour revenue skyrocketed by 129% to RMB 883 million (US$122 million), and corporate travel revenue experienced a 15% rise to RMB 511 million (US$71 million).
Driving Factors:
Executive Chairman James Liang attributed the impressive performance to several key factors. These included a stabilized supply within the travel industry and the relaxation of visa requirements, facilitating increased travel demand in China. Moreover, Trip.com’s global business saw substantial growth, fueled by enhanced product offerings and a commitment to technological innovations aimed at delivering superior travel experiences to users.
Profitability and Earnings:
The positive revenue trends translated into notable increases in net income and Adjusted EBITDA. Net income surged by 26% to RMB 4.3 billion (US$599 million), while Adjusted EBITDA witnessed an impressive 41% growth, reaching RMB 4.0 billion (US$550 million).
Trip.com’s Q1 2024 performance underscores the resilience and adaptability of China’s travel sector in the face of challenges. With encouraging growth across various segments and a strategic focus on innovation, Trip.com is well-positioned to capitalize on the evolving travel landscape and continue its upward trajectory in the coming quarters.