TRIP.COM(US:TCOM) 声动活泼·2025-06-18 10:58Core Viewpoint - Trip.com, the international online travel platform under Ctrip, has made significant strides in expanding its overseas business, achieving a revenue share of 14% in 2024, with expectations to contribute about 20% of the group's revenue in the next three to five years [1][2]. Group 1: Business Expansion Strategies - Ctrip's overseas business expansion began in 2016 with the acquisition of Skyscanner for approximately 136 billion RMB, which enhanced user acquisition through its high traffic and user engagement [4]. - The company further expanded its international presence by acquiring Trip.com in the U.S. and investing in Travix and MakeMyTrip, thereby increasing its market share in Europe and South Asia [4]. - Ctrip established a global content agreement with TripAdvisor in 2019, allowing Trip.com to leverage TripAdvisor's content as a significant traffic source [4]. Group 2: User Engagement and Marketing - Ctrip effectively utilizes Skyscanner's flight search capabilities, showcasing competitive flight and hotel prices to guide users towards higher-margin products [6]. - In 2024, Ctrip's international flight bookings increased by over 70%, with 15%-20% of flight users also booking hotels or other travel products [6]. - The implementation of visa-free entry policies has significantly boosted inbound tourism, with a 240% increase in hotel bookings from major visa-free countries in the first quarter of 2025 [6]. Group 3: Innovative Marketing Approaches - Ctrip has adopted live streaming as a marketing strategy since 2020, launching a new Asian live streaming center in Bangkok, which has attracted over 10 million viewers in 2024 [7]. - Traditional marketing efforts include airport promotions and tailored advertising campaigns that resonate with local cultures, such as the campaign in Hong Kong targeting young workers [9]. Group 4: Challenges and Market Dynamics - Despite its achievements, Ctrip faces intense competition from established platforms like Expedia, Booking, and Airbnb, necessitating unique value propositions to retain customers [10]. - The company's low commission rate strategy, averaging 3.9%, raises concerns about its long-term sustainability compared to competitors with rates three times higher [10]. - Ctrip's marketing expenses reached 11.9 billion RMB in 2024, a nearly 30% increase year-on-year, which may impact profitability in the short term [10]. Group 5: User Demographics and Market Penetration - Currently, Ctrip's overseas user base is predominantly composed of overseas Chinese, with foreign users representing a smaller proportion [11]. - The company has validated its strategies in the Asia-Pacific region but faces challenges in retaining local users in more mature markets like Europe and North America [11].