China lifts Trip.com Group Q2 performance

SHANGHAI, 27 September 2021: Trip.com Group’s total net revenue increased by 86% year over year and 43% quarter over quarter, driven by the strong recovery momentum of the Chinese domestic market.

Trip.com Group Limited, listed on Nasdaq and Hong Kong Exchange HKEX: 9961) announced its unaudited financial results for the second quarter and first half of 2021 at the weekend.

The global travel service provider of accommodation reservations, transportation ticketing, packaged tours and corporate travel management said the business showed resilient recovery in the China domestic marketing headlined the performance highlights.

Despite the signs of recovery evident in the second quarter and year-to-date performance, the company reported a Q2 net loss attributable to the group’s shareholders of RMB647 million (USD100 million), compared to a net loss of RMB476 million in the same period in 2020 and net income attributable to Trip.com Group’s shareholders of RMB1.8 billion in the previous quarter.

Key performance highlights

Domestic hotel and air-ticket GMV increased by about 150% year over year. Compared with the same pre-COVID period in 2019, both domestic hotel and air ticketing reservations achieved double-digit growth in the second quarter.

Staycation travel continues to serve as a major driver of domestic recovery, with local hotel reservations growing nearly 80% versus the pre-Covid-19 period in 2019.

Revenues from corporate travel management grew 141% year over year and 26% compared with the pre-COVID period in 2019.

“Overall, the Chinese domestic travel market has been encouraging, and we see great potential in international markets,” said the group’s executive chairman James Liang. “Going forward, we will continue to be adaptive and responsive to the changing market conditions and the evolving demands of post-pandemic travellers.”

“Throughout the second quarter, we continued to focus on the domestic market in terms of the supply chain, content capabilities, service quality, and technology advancement, to lay a solid foundation for new growth drivers beyond the pandemic,” said chief executive officer Jane Sun. “We also endeavour to maximize our social impacts while increasing the company’s total value. We will keep improving as we strive towards our ideals.”

Second-quarter business update

The company’s overall results for the second quarter of 2021 were negatively impacted by the Covid-19 pandemic, as well as subsequent outbreaks that were driven by new variants of Covid-19. However, benefiting from the general containment of the Covid-19 pandemic in China, the company’s domestic business showed a strong recovery.

For the second quarter of 2021, Trip.com Group reported net revenue of RMB5.9 billion (USD912 million), representing an 86% increase from the same period in 2020, primarily due to the strong recovery of China’s domestic market. Net revenue for the second quarter of 2021 increased by 43% from the previous quarter, primarily due to the easement of China’s travel restrictions previously enhanced in January and February 2021.

Accommodation reservation revenue for the second quarter of 2021 was RMB2.5 billion (USD380 million), representing a 96% increase from the same period in 2020 and a 55% increase from the previous quarter, primarily due to the recovery of China’s domestic market.

Transportation ticketing revenue for the second quarter of 2021 was RMB2.1 billion (USD320 million), representing an 80% increase from the same period in 2020 and a 37% increase from the previous quarter, primarily due to the recovery of China’s domestic market.

Packaged-tour revenue for the second quarter of 2021 was RMB367 million (USD57 million), representing a 182% increase from the same period in 2020 and a 117% increase from the previous quarter, primarily due to the recovery of China’s domestic market.

Corporate travel revenue for the second quarter of 2021 was RMB390 million (USD60 million), representing a 141% increase from the same period in 2020 and a 55% increase from the previous quarter, primarily due to the recovery of China’s domestic market.

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