Jing Ji Guan Cha Wang·2025-05-20 06:24Core 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]