Ctrip in the second quarter to turn a net profit of RMB 43 million in some overseas regions exceeded the same period in 2019

21st Century Economic Herald reporter Cao Enhui Shanghai report

On September 22, Ctrip Group (09961.HK; TCOM) handed over the performance transcript in the second quarter of 2022.

According to the financial report, in the first half of this year, the group realized operating income of 8.12 billion yuan (RMB, the same below), a year -on -year decrease of 18.78%, and a loss of 920 million yuan. However, in the second quarter, the profitability of Ctrip Group had rebounded -during the reporting period, the group achieved operating income of 4.011 billion yuan and a net profit of 43 million yuan, which was greatly improved from a loss of 1 billion yuan in the first quarter.

In this regard, Liang Jianzhang, chairman of Ctrip Group's board of directors, said at the performance telephone meeting that the global tourism industry continued to recover in the second quarter. Ctrip's revenue in the European and American markets has exceeded the same period of 2019, and the Asia -Pacific market is also growing rapidly. "Although April In May, the domestic market was facing severe challenges, but travel demand was fully released in June and summer, and the toughness of the tourism market appeared. "

The 21st Century Economic Herald reporter noticed that due to the impact of the epidemic, Ctrip's domestic market business suffered a certain impact in the first half of the year, but in the second half of the second quarter, its local hotel market business recovered and became a highlight. From the perspective of performance throughout the second quarter, the rapid growth of overseas business has become the main driving force for Ctrip Group in the second quarter.

Domestic business is still driven by local travel

From the perspective of the specific performance of the main business, in the second quarter of this year, Ctrip Group accommodation reservation achieved a revenue of 1.4 billion yuan, the revenue of traffic tickets was 1.8 billion yuan, the tourism and vacation business achieved revenue of 122 million yuan, the business travel management business achieved income of 210 million yuan Essence

Due to the influence of the epidemic, the revenue of the above four main business sectors has encountered a year -on -year and month -on -month decline. However, driven by local travel, its domestic hotel market reservation has become one of the few growth points.

The financial report shows that in the second quarter, the group's local hotel reservation increased by more than 30%compared to the same period in 2019. In this regard, Ctrip Group stated that due to the impact of the epidemic, Ctrip's domestic business showed the characteristics of "a sluggish performance in April and May, and quickly rebounded in June."

From the perspective of accommodation booking business, data released by Ctrip Group shows that South China and West China Hotel reservations that are less affected by the epidemic are recovered in mid -May to the end of June, exceeding the same period of 2019; in late June, Ctrip Group domestic hotel The reservation volume has been completely restored and exceeds the same period in 2019.

According to Sun Jie, CEO of Ctrip Group, in the context of local and surrounding tourism, the number of hotels covered by hotel packages has increased by 20%since the end of 2021. %.

It is undeniable that in the current business environment, local and surrounding tourism play a supporting role in the domestic business of Ctrip Group. Since the epidemic occurs, its local order is increasing year by year. Data show that from January to August this year, the proportion of Local orders of Ctrip Group increased by 44%compared to the same period in 2019. Among them, local orders in first -tier and new first -tier cities accounted for a leading increase, an increase of more than 50%compared with the same period in 2019.

To this end, the group also accelerates the implementation of emerging businesses in response to changes in domestic market demand. In the first half of this year, its domestic car rental business transaction volume increased by more than 90 % compared with the same period in 2019; in the second quarter, the transaction volume of Ctrip Group's private group products increased by nearly two times the month.

Liang Jianzhang believed at the telephone meeting that although the outbreak still affected the recovery of domestic tourism, the impact on travel emotions gradually faded and the market also showed toughness.

Based on this, the recovery momentum of Ctrip Group's domestic business continued to the third quarter. Among them, the group's domestic hotel reservation increased by more than 20%compared with 2019. The reservation in August remained positive growth compared to 2019.

The European and American market revenue exceeds the same period of 2019

The rebound in overseas markets has become the main reason for the second quarter performance of Ctrip Group to exceed market expectations.

According to the financial report, in the second quarter of this year, the group's overseas business continued to grow high, and the proportion of overall revenue continued to increase. Specifically, its revenue in the European and American markets in the second quarter has exceeded the same period of 2019, and the Asia -Pacific market business is also growing rapidly.

According to the financial report, in the second quarter, Ctrip ’s overseas platform air tickets and hotel reservations increased by more than 100%year -on -year, of which hotel reservations increased by more than 50%compared with 2019. Overseas hotels resumed faster than the industry; %, And maintained a year -on -year growth rate in the first half of 2022; in addition, Ctrip's overseas business travel hotel transaction volume increased by 540%year -on -year.

From the perspective of regional market performance, in the second quarter, Europe is the fastest market for Ctrip's international business. Sun Jie said in the conference call that despite the lack of factor factors such as the shortage of transportation power and strike, the growth rate of the European market has slowed down, but Ctrip's performance is still considerable. In the second quarter, Ctrip's European ticket reservation was close to the level of 2019, and hotel reservations increased by nearly 400%year -on -year.

In the Asia -Pacific market, thanks to the rebound of travel activities in the Asia -Pacific region, Ctrip Group's overseas market travel product prices and long -distance travel proportion of overseas markets in the region have further resumed its international brands in July and August. Essence

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