Summary of Key Points from the Conference Call Industry Overview - **Industry**: Travel and Leisure in China, focusing on hotels, airlines, and duty-free sales - **Period**: Chinese New Year holidays from February 15-23, 2026 Core Insights and Arguments - **Travel Demand**: Strong travel demand was anticipated due to improved consumer sentiment and a longer holiday period, with domestic tourist numbers reaching 596 million, a +19% year-over-year (yoy) increase, and tourism revenue growing to RMB 803 billion, also +19% yoy [1][13] - **Per-Tourist Spending**: Average spending per tourist remained stable at RMB 1,348, indicating consistent consumer behavior [13] - **Outbound Travel**: Outbound travel saw a total of 4.8 million Chinese residents traveling abroad, marking a +24% yoy increase, with notable growth in destinations like Vietnam (+38%) and Korea (+13%) due to reduced travel to Japan [1][13] - **Air Passenger Traffic**: Air passenger traffic grew +7% yoy, surpassing the Civil Aviation Administration of China (CAAC) guidance of +5% [6][16] - **Airfare Trends**: Domestic airfare increased by +7% yoy, while international airfare rose by approximately +15% yoy, reflecting a tight flight capacity [6][9] - **Hotel Performance**: The hotel industry maintained positive revenue per available room (RevPAR) growth, driven by average daily rates (ADR) [6][11] - **Duty-Free Sales**: Hainan's duty-free sales growth slowed to +15% yoy during the holiday, down from +45% in January, attributed to a decline in per-shopper spending [6][11] - **Macau Gaming Revenue**: Macau's gross gaming revenue (GGR) grew by approximately +5% yoy to MOP 786 million per day, below expectations due to a lower-than-normal VIP win rate [6][12] Additional Important Insights - **Cultural Experiences**: Cultural tourism is gaining popularity, with significant increases in bookings for cultural performances and AI-driven travel services [7] - **Skiing and Ice Sports**: Interest in skiing and ice sports is driving long-haul travel demand, particularly to European countries, boosted by the upcoming 2026 Winter Olympics [7] - **Retail Recovery in Hong Kong**: Hong Kong experienced a healthy growth in inbound tourist arrivals (+12% yoy), supporting retail recovery, especially in high-end categories like jewelry and watches [12] - **Market Reactions**: Share prices of leisure and travel companies remained stable, with exceptions for CTGDF (-10%) and TCOM (-5%) due to specific concerns [8] Conclusion The travel and leisure industry in China is showing robust growth, driven by increased domestic and outbound travel, positive consumer sentiment, and a recovery in retail sales, particularly in high-end markets. However, challenges remain in specific areas such as duty-free sales and Macau's gaming revenue, which require close monitoring.

Core Insights - Expedia Group and Affirm have announced an expanded multi-year partnership, making Affirm the exclusive provider of BNPL installment payment methods for lodging and packages across Expedia, Hotels.com, and Vrbo [1] - The partnership will also extend to Canadian travelers on select properties in the near future [1] Payment Options - Eligible travelers can receive real-time approval decisions and choose customized monthly payment plans of up to 24 months when shopping for hotels and packages [2] - In the US, eligible travelers can access 0% APR offers on three- or six-month plans [2] Strategic Vision - The partnership aims to empower travelers by providing clarity and confidence in payment options, enhancing their ability to plan meaningful experiences [3] - The integration of payment choice and transparency is becoming increasingly important in the booking experience, especially with the rise of AI-powered tools [3] Market Position - Affirm has been a partner of Expedia Group for a decade, indicating a long-standing relationship that adapts to changing consumer preferences regarding payment methods [4] - Expedia Group is part of a network of nearly 420,000 merchants globally that trust Affirm for flexible payment options, including major brands like Amazon and Costco [4]