HONG KONG, 24 May 2021: Trip.com Group, China’s largest online travel agency, reported higher-than-expected financial performance for the first quarter, and the strong results indicate a resilient recovery of China’s domestic tourism market, according to a China Daily report.
Compared with the first quarter of 2019 before the outbreak of the COVID-19 pandemic, both domestic hotel and air ticketing reservations have fully recovered since early March and achieved double-digit growth, according to the company’s latest financial results reported last Wednesday.
In the first quarter, Trip.com achieved sales revenue of 4.1 billion yuan (USD628 million). During the period, its net profit reached 1.8 billion yuan, surging nearly 80% over the previous quarter, and the company has remained profitable for three consecutive quarters.
Earlier this year, Covid-19 outbreaks impacted parts of China, and precautionary measures reduced travel during the Chinese Lunar New Year. However, China’s domestic travel rebounded quickly in March and showed even stronger momentum in April and May, Trip.com Group confirmed in its report to the stock exchange.
Trip.com made its secondary listing in Hong Kong on 19 April, 19 years after it debuted on the Nasdaq stock market in 2003. So far, the Hong Kong-listed stock has maintained its share price of HKD304.8 (USD39.3) above the offering price since its IPO.
Meanwhile, online travel platform Tongcheng-Elong said its first-quarter revenue hit 1.61 billion yuan, up 60.6% on a yearly basis. Its adjusted net profit in the period reached 300 million yuan, surging 279.5% year-on-year, according to its quarterly earnings report released last Friday.
“This year marks the centenary of the founding of the Communist Party of China, which will prompt tourism operators to promote “red tourism and launch more tours for the domestic market.