SINGAPORE, 24 November 2023: Domestic and international businesses continued to show robust recovery in the third quarter of 2023, according to Trip.com Group reporting its unaudited financial results for the third quarter of 2023 earlier this week
Third Quarter 2023 highlights
Domestic hotel bookings grew by over 90% year over year and increased by over 70% compared to the pre-Covid level for the same period in 2019.
Outbound hotel and air reservations recovered to around 80% of the pre-Covid level for the same period in 2019, compared to the industry-wide recovery rate of over 50% in terms of international air passenger volume for the same period.
Total bookings on the company’s global OTA platform increased by over 100% yearly and compared to the pre-Covid level for the same period in 2019. The company delivered strong results in the third quarter of 2023. Total net revenue for the third quarter grew by 99% year over year. Net income for the third quarter was RMB4.6 billion (USD637 million), which improved significantly from RMB245 million for the same period in 2022. Adjusted EBITDA for the third quarter was RMB4.6 billion (USD634 million). Adjusted EBITDA margin was 34%, compared to 21% for the same period in 2022 and 33% for the previous quarter.
“Throughout the third quarter of 2023, both domestic and international travel experienced a remarkable rebound, thanks to the robust summer travel demands,” said Trip.com Group executive chairman James Liang’
“This shows just how eager travellers are to explore the world. Looking ahead, we will continue expanding our global presence and cultivating AI-related initiatives, laying the foundation for continued growth of our company.”
Third Quarter of 2023 Financial Results
For the third quarter of 2023, Trip.com Group reported net revenue of RMB13.7 billion (USD1.9 billion), representing a 99% increase from the same period in 2022 primarily due to the substantial recovery of the travel market. Net revenue for the third quarter of 2023 increased by 22% from the previous quarter, primarily due to seasonality.
Accommodation reservation revenue for the third quarter of 2023 was RMB5.6 billion (USD766 million), representing a 92% increase from the same period in 2022. Accommodation reservation revenue for the third quarter of 2023 increased by 30% from the previous quarter, primarily due to seasonality.
Transportation ticketing revenue for the third quarter of 2023 was RMB5.4 billion (USD736 million), representing a 105% increase from the same period in 2022. Transportation ticketing revenue for the third quarter of 2023 increased by 11% from the previous quarter, primarily due to seasonality.
Packaged-tour revenue for the third quarter of 2023 was RMB1.3 billion (USD182 million), representing a 243% increase from the same period in 2022. Packaged-tour revenue for the third quarter of 2023 increased by 84% from the previous quarter, primarily due to seasonality.
Corporate travel revenue for the third quarter of 2023 was RMB591 million (USD81 million), representing a 60% increase from the same period in 2022 and a 1% increase from the previous quarter.
Cost of revenue for the third quarter of 2023 increased by 94% to RMB2.5 billion (USD338 million) from the same period in 2022 and increased by 23% from the previous quarter, which was in line with the increase in net revenue. Cost of revenue as a percentage of net revenue was 18% for the third quarter of 2023.
Net income for the third quarter of 2023 was RMB4.6 billion (USD637 million), compared to RMB245 million for the same period in 2022 and RMB648 million for the previous quarter. Adjusted EBITDA for the third quarter of 2023 was RMB4.6 billion (USD634 million), compared to RMB1.4 billion for the same period in 2022 and RMB3.7 billion for the previous quarter. Adjusted EBITDA margin was 34% for the third quarter of 2023, compared to 21% for the same period in 2022 and 33% for the previous quarter.
