Core Insights - Trip.com Group Ltd reported a 16% revenue growth in its first-quarter earnings, which is a slowdown from the previous quarter's 23% growth [2][4] - The company continues to gain market share domestically and is experiencing rapid growth internationally, particularly in Asia [2][4] - Analysts maintain a positive outlook with Buy ratings, with price targets raised to $73 and $80 by TD Cowen and Benchmark respectively [2][4] Financial Performance - Trip.com reported solid quarterly results with a year-on-year revenue growth of 16% and better-than-expected profitability [4] - The company reiterated its guidance for the second quarter and full year, targeting mid-teens growth, with international travel as a core driver [4] Marketing and Strategy - The company has increased its advertising spend to boost its international business, focusing on aggressive marketing strategies [3][5] - AI integration is expected to enhance user engagement and operational efficiency, improving both user experience and scalability [5] Stock Performance - Shares of Trip.com declined by 6.29% to $62.88 at the time of publication [5]

Summary of Ctrip Group's Q1 2025 Earnings Call Company Overview - **Company**: Ctrip Group - **Date**: Q1 2025 Earnings Call Key Points Industry Performance - Ctrip Group's overall booking volume increased by over 60% year-on-year in Q1 2025, with the international online travel platform showing strong performance, particularly in the Asia-Pacific region, which served as the main growth engine [2][4] - The inbound tourism in China saw a significant recovery, with a 40% year-on-year increase in inbound visitors, and Ctrip's inbound bookings grew by approximately 100% [2][6] Financial Performance - Ctrip reported a net revenue of 13.8 billion RMB in Q1 2025, a 16% increase year-on-year and a 9% increase quarter-on-quarter [3][12] - Hotel booking revenue reached 5.5 billion RMB, up 23% year-on-year and 7% quarter-on-quarter [3][12] - Transportation ticketing revenue was 5.4 billion RMB, reflecting an 8% year-on-year increase and a 13% quarter-on-quarter increase [5][12] Technological Advancements - Ctrip is actively embracing artificial intelligence (AI) to enhance user experience, with the AI assistant Trip Genie increasing user session duration by approximately 50% [2][7] - AI chatbots handle over 80% of after-sales inquiries, significantly reducing response times and improving customer satisfaction [7] Target Markets - Ctrip is focusing on the elderly market by offering over 7,000 travel products, 2,000 partner hotels, and 4,000 hotel packages tailored for older travelers [2][8] - The demand for "entertainment + travel" experiences among young travelers surged, with related product revenue increasing by over 400% year-on-year [2][10] Strategic Initiatives - Ctrip has increased its stock buyback efforts, repurchasing approximately 85 million USD worth of shares, with a total buyback plan approved for about 600 million USD [5][27] - The company is committed to creating long-term value through initiatives like supporting rural revitalization and providing additional paid leave for employees with children [11] Market Trends - The average daily hotel rates saw a slight decline in Q1 but are stabilizing as demand increases and supply normalizes [16] - The competitive landscape in the domestic market is becoming more rational, with Ctrip focusing on leveraging its strong loyalty programs [19] Future Outlook - Ctrip anticipates continued growth in inbound tourism, with strong momentum expected to persist [24] - The company plans to maintain its marketing investments while optimizing resource allocation to enhance efficiency [25][26] Additional Insights - Ctrip's international online travel platform is expected to benefit from the increasing demand from both leisure and business travelers, particularly in the Asia-Pacific region [4][20] - The company is well-positioned to capitalize on the recovery of cross-border travel, with a focus on enhancing its mobile application user experience [22][23]

以下是携程 FY25 Q1 的财报电话会纪要，财报解读请移步《携程：又是增收不增利，优等生也遇到难题了？》 一、财报核心信息回顾 | TCOM Financial Results Recap | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | RMB '00mn | 1Q23 | 2023 | 3Q23 | 4Q23 | 1Q24 | 2024 | 3Q24 | 4Q24 | 1Q25 | 1Q25E | var. | | Total net revenue | 92.0 | 112.5 | 137.4 | 103.3 | 119.1 | 127.7 | 158.8 | 127.4 | 138.3 | 138.0 | 0.2% | | yoy | 124% | 180% | 99% | 105% | 29.4% | 13.5% | 15.7% | 23.5% | 16.2% | 15.9% | | | Accommodation | 34.8 | 42.9 | 5 ...

Core Viewpoint - Overall, Ctrip's net revenue for the quarter was 13.8 billion RMB, a year-on-year increase of 16%, aligning closely with market expectations. Adjusted operating profit was 4.04 billion RMB, showing a modest year-on-year growth of 7%, slightly exceeding expectations by nearly 300 million RMB [1][7]. Revenue and Business Performance - The booking volume for inbound travel increased by over 100% year-on-year, while outbound travel bookings exceeded 120% of the same period in 2019, indicating stable demand for both inbound and outbound travel without significant strengthening [1][2]. - Pure overseas bookings grew by 60% year-on-year, a slight decrease from the previous quarter's 70%, but still reflecting a strong growth rate [2]. - Hotel business revenue increased by nearly 23% year-on-year, outperforming market expectations by 1.4 percentage points, although domestic hotel revenue growth may slow to 10%-15% due to a slight decline in average spending [2][3]. - Ticketing business revenue growth fell to 8.4%, returning to single-digit growth, primarily due to a 10%-15% year-on-year decline in domestic and outbound ticket prices [3]. Smaller Business Segments - Revenue from packaged tours dropped to 91% of the same period in 2019, indicating weak performance attributed to travelers' preference for independent travel and competition from platforms like Meituan and Douyin [3]. - Advertising revenue grew by 33%, showing strong momentum, with expectations for continued growth driven by increased ad penetration and community features on Ctrip's platform [3]. Cost and Profitability - Ctrip's gross margin for the quarter was 80.4%, slightly below the expected 81% and showing a year-on-year contraction, influenced by a higher proportion of lower-margin overseas business and declining hotel and ticket prices [5]. - Marketing expenses increased by 30% year-on-year to 3 billion RMB, exceeding revenue growth but still lower than the market expectation of 3.3 billion RMB, resulting in an additional profit of 300 million RMB [4][5]. - Research and development expenses and administrative expenses grew by 14.2% and 11.7% year-on-year, respectively, both below revenue growth rates, indicating no significant expansion [5]. Overall Financial Performance - Despite a 16% increase in total revenue, operating profit only grew by 7% year-on-year due to rising costs and a decrease in gross margin, leading to a noticeable contraction in operating profit margin [6][7]. - The company’s performance remains stable, with revenue growth in line with expectations, while profit growth is modest, reflecting a cautious outlook for the year [7].

Group 1 - Trip.com Group Limited reported strong Q1 results, indicating continued momentum in the travel industry, particularly driven by favorable conditions in China [1] - The online travel agency operator's performance reflects a broader recovery trend in the travel sector as demand surges [1] Group 2 - The company is positioned well within the market, benefiting from the rebound in travel activities post-pandemic [1] - Analysts are observing the company's growth potential, especially in the context of the increasing travel demand in China [1]

Exhibit 99.1 Trip.com Group Limited Reports Unaudited First Quarter of 2025 Financial Results SINGAPORE, May 19, 2025 — Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) ("Trip.com Group" or the "Company"), a leading global one-stop travel service provider of accommodation reservation, transportation ticketing, packaged tours, and corporate travel management, today announced its unaudited financial results for the first quarter of 2025. First Quarter of 2025 Financial Results and Business Updates For the fi ...

Group 1 - The core idea of the articles revolves around the growing trend of travel among older adults, particularly those aged 50 and above, highlighting the emergence of tailored travel services and experiences for this demographic [2][4][5] - Ctrip's "Old Interesting Travel Group" has launched a series of themed tours specifically designed for seniors, achieving over 10 million exposures online and attracting more than 300,000 members within a year [2] - The customized inbound travel services have seen a significant revenue increase of 599% year-on-year, indicating a strong demand for personalized travel experiences among older travelers [5] Group 2 - Ctrip has successfully organized a reunion trip for a group of silver-haired classmates, emphasizing the importance of cultural and culinary experiences tailored to their preferences [4] - The company has initiated various marketing campaigns to promote Chinese mountain culture in South Korea, resulting in a 70% increase in ticket sales for related flights [7] - The rise of young tour guides, particularly university students, is reshaping the car rental travel experience, with over 2,000 students joining Ctrip's guiding platform [9] Group 3 - Ctrip's "Hello Island" project has attracted nearly 100 university students and entrepreneurs to explore new paths in tourism and digital integration on Zhoushan Island, contributing to local economic development [11][12] - The company is capitalizing on the trend of concert tourism, with a reported 6.8 billion yuan in travel consumption driven by young concert-goers, leading to a 400% increase in related product revenue [14] - A music competition organized by Ctrip and NetEase Cloud Music has gathered 13,500 original songs, promoting local tourism through music and engaging over 660,000 voters [15] Group 4 - Ctrip's vacation farm initiative has created job opportunities for 40,000 individuals, showcasing the impact of rural revitalization efforts in various regions [17] - The company has established 34 vacation farms, supporting local communities and enhancing the connection between traditional lifestyles and modern tourism [17]

Investment Rating - The report assigns a 12-month rating of "Buy" for Trip.com with a price target of US$76.00, while the current price is US$65.54 [7][26]. Core Insights - Trip.com reported 1Q25 revenues of Rmb13.8 billion, reflecting a 16.2% year-over-year increase, which was largely in line with expectations. The operating expenses were 3.9% below estimates, primarily due to reduced marketing spending, leading to a non-GAAP operating profit of Rmb4.0 billion and a non-GAAP operating profit margin of 29.2%, exceeding expectations [2][3]. - The company demonstrated strong performance across segments, with accommodation revenue rising by 23%, transportation by 8%, and corporate travel by 12% year-over-year. Outbound hotel and air ticket bookings have recovered to over 120% of pre-COVID levels, significantly outperforming the industry's international flight capacity recovery of 83.9% [3][4]. - Management remains optimistic about sustaining growth, supported by resilient demand and favorable policies, indicating confidence in the company's outlook [4][5]. Financial Metrics - Key financial metrics for 1Q25 include net revenue of Rmb13.8 billion, non-GAAP operating profit of Rmb4.0 billion, and non-GAAP net profit of Rmb4.2 billion, which exceeded consensus estimates by 2.2% and 9.2% respectively [6]. - Forecasted revenues for Trip.com are projected to grow from Rmb20.0 billion in 2022 to Rmb96.8 billion by 2029, with net earnings expected to increase from Rmb1.3 billion in 2022 to Rmb34.4 billion by 2029 [6]. - The company is expected to maintain a strong EBIT margin, projected at 28.2% for 2025, with a return on invested capital (ROIC) of 20.4% [6]. Market Position - Trip.com is positioned as a leading travel service provider in China and internationally, operating multiple brands including Trip.com, Ctrip, Skyscanner, and Qunar. The company aims to generate 15-20% of total revenue from international businesses in the next three to five years [11].

Core Insights - Ctrip has released a report predicting the travel trends for the Dragon Boat Festival in 2025, highlighting a diverse development in the tourism market with a steady growth trajectory for domestic travel [1] Group 1: Travel Trends - The domestic surrounding travel bookings for the Dragon Boat Festival are expected to increase by 23% year-on-year, indicating a robust recovery in the tourism market [1] - Popular destinations include Beijing, Shanghai, and Nanjing, with strong travel demand from the Yangtze River Delta, Pearl River Delta, Beijing-Tianjin-Hebei, and Sichuan-Chongqing regions [1] Group 2: Hotel Pricing Dynamics - Hotel prices are set by the hotels themselves, and OTA platforms do not interfere; this leads to price discrepancies for the same room type due to different pricing strategies by agents [2] - It is advised for travelers to monitor hotel price trends and book in advance to secure better deals [2] Group 3: Cultural and Traditional Activities - There is a 50% year-on-year increase in searches for traditional cultural experiences during the Dragon Boat Festival, with activities like dragon boat racing and making zongzi gaining popularity [3] - Notable increases in tourism bookings were observed in Foshan, Hunan, and Zhejiang, with growth rates of 167%, 85%, and 40% respectively for travel orders [3] Group 4: International Travel - Popular international destinations include Japan and South Korea, with a significant interest in short-haul flights [4] - Unique destinations like Egypt and Russia have seen hotel booking increases of 193% and 133% respectively, indicating a growing interest in diverse travel options [4]

Core Insights - Ctrip Group reported a net revenue of 13.8 billion RMB for Q1 2025, a 16% year-on-year increase, with a net profit of 4.3 billion RMB and a gross margin of 81% [1] - The company continues to show resilience in the travel industry recovery, driven by rapid international expansion and technological empowerment [1] Business Performance - All four core business segments of Ctrip achieved double-digit growth: accommodation booking revenue reached 5.5 billion RMB, transportation ticketing revenue was 5.4 billion RMB, vacation travel revenue was 947 million RMB, and business travel management revenue was 573 million RMB [2] - International business became a key growth driver, with overall travel booking volume on the international OTA platform increasing by over 60%, and international revenue share rising from 10% in Q1 2024 to 14% in Q1 2025 [2] - Outbound travel business showed strong performance, with total transaction volume (GTV) recovering to 120% of the same period in 2019, significantly above the industry average [2] - Inbound travel orders increased by approximately 100% year-on-year, driven by the optimization of China's visa-free policies, with hotel bookings from major visa-free regions growing over 240% [2] Technological Empowerment - Ctrip prioritizes AI technology, achieving a 20% reduction in labor costs through applications like intelligent customer service [3] - AI-assisted content production tools reduced content creation time from 8.5 minutes to 15 seconds, with a content qualification rate exceeding 98.9% [3] - The company plans to add 200 international self-service ticketing points by 2025 and enhance digital infrastructure for inbound tourism [3] Global Expansion and Capital Operations - Ctrip is building a competitive moat through global expansion, with a market share exceeding Booking in Southeast Asia, particularly 71% in Indonesia [4] - The company announced a plan to repurchase 400 million USD in stock and distribute 200 million USD in cash dividends, reflecting management's confidence in long-term value [4] - Ctrip's net profit for 2024 reached 17.067 billion RMB, a 72.08% year-on-year increase, supporting the buyback and dividend plans [4] Challenges and Opportunities - Despite strong performance, Ctrip faces short-term challenges, including lower profit margins in Southeast Asia and increased marketing costs in international markets [5] - The management remains optimistic about future growth, targeting a leading position in the Asian market, supported by favorable policies and increased R&D investment [5] - Ctrip's AI customer service has resolved 80% of inquiries, with over 70% automation in after-sales service, saving an average of 10,000 hours of labor daily [5] CEO Statement - Ctrip's CEO highlighted the first-quarter performance as a testament to the platform's advantages and the resilience of travel demand, emphasizing the company's commitment to innovative, localized, and customer-centric travel solutions [6] - The company is transitioning from a single OTA platform to a travel technology giant, with increasing international business share and deepening AI strategy [6]