Core Viewpoint - Citigroup's research report indicates that the tourism performance during the Dragon Boat Festival in mainland China was relatively weak, maintaining a "Buy" rating for both Trip.com and Tongcheng Travel [1] Industry Summary - During the Dragon Boat Festival holiday on June 3, tourism volume and industry revenue in mainland China increased by 5.7% and 5.9% year-on-year, respectively [1] - Domestic passenger traffic rose by 2.5%, with rail and air travel increasing by 4.3% and 1.7%, respectively [1] - Cross-border travel volume grew by 2.7%, while visa-free entry increased significantly by 59.4% [1] Company Summary - The data for outbound and domestic travel showed some weakness, attributed to rainfall in the Yangtze River Delta and the proximity of this year's Dragon Boat Festival to the May Day holiday [1] - The inbound travel momentum remains strong, benefiting Trip.com Group (09961.HK), which saw a robust performance in family travel demand, with family-related orders accounting for 25% of total orders [1] - The overlap of Children's Day and the Dragon Boat Festival led to nearly a 90% increase in inbound travel orders for Trip.com [1] - Tongcheng Travel (00780.HK) also observed significant growth in family travel-related order volume [1] - Citigroup set a target price of $78 for Trip.com and HKD 26 for Tongcheng Travel, both maintaining a "Buy" rating [1]

Summary of Ctrip Conference Call Company Overview - **Company**: Ctrip (Trip.com) - **Industry**: Online Travel Agency (OTA) Key Points and Arguments Domestic Hotel Booking Trends - In Q2, domestic hotel bookings maintained double-digit growth despite a year-over-year price decline, with the decline rate narrowing [2][3] - Hotel supply increased by 5%-10% year-over-year, indicating a clear trend of normalized demand growth [2][3] - Traffic maintained a steady double-digit growth, with expectations for continued normalized growth in domestic tourism [2][4] International Travel Recovery - Outbound travel capacity has recovered to approximately 80%-85%, with free travel, hotel, and flight recovery rates at 120%-125% [2][5] - Ctrip's international version saw a growth rate of about 60% in Q1, with a target of over 50% growth for the year [2][5] - Overall revenue growth is expected to maintain around 15% for the year [2][5] Revenue Composition and Future Goals - Domestic business accounts for 60%-65% of total revenue, outbound business approximately 15%, and pure overseas business 20% [2][6] - Trip.com contributed about 13% to total revenue, exceeding pre-pandemic levels [2][6] - The goal is for international business to contribute over 50% of total revenue in the next 3-5 years, with Trip.com aiming for around 20% [2][7] Hotel Revenue Structure - Trip.com has shifted from primarily ticket sales to hotel revenue, which now exceeds 40% and is expected to increase further [2][8] - A higher hotel revenue proportion is anticipated to positively impact Ctrip's profit structure [2][8] Seasonal Trends in Travel - The peak travel season for overseas and domestic tourism differs significantly, with Q4 being the peak for Trip.com due to major holidays [2][9][10] - Q3 is also busy due to summer vacations, while Q1 and Q2 are more fragmented with various regional holidays [2][9][10] International Route Recovery - Some routes in the Asia-Pacific region, such as Thailand, have not fully recovered to pre-pandemic levels, with recovery rates around 60%-70% [2][11] - Europe has largely recovered or surpassed 2019 levels, while some regions like Spain and Italy are still lagging [2][11] Foreign Tourist Preferences - Foreign tourists from the Asia-Pacific region prefer using Trip.com, while European and American tourists tend to use Booking.com [2][13] - Trip.com is the only platform allowing foreign tourists to book high-speed train tickets in China, providing a competitive advantage [2][15] Future Growth Expectations - Ctrip anticipates an increase in inbound tourism's contribution but aims to avoid over-reliance on the Chinese market [2][17] - The company plans to enhance brand awareness in the Asia-Pacific region to attract more foreign tourists [2][17] Financial Performance and Projections - Ctrip's international segment is expected to incur higher losses than last year, but this is within anticipated limits [2][21] - The budget and revenue expectations for 2025 align with initial forecasts, with a stable tax rate around 15% [2][22][23] Market Position and Competition - Trip.com has maintained profitability with an operating margin of 20-25% [2][26] - The company faces competition from traditional channels and aims to leverage its unique positioning and local language services to capture market share [2][27] Commission Rates and Monetization - Trip.com’s commission rates in overseas markets are lower than competitors, around 8%, to enhance competitiveness [2][28] - The company plans to gradually increase commission rates as the market expands while maintaining lower rates than competitors [2][28] Strategic Differences with Competitors - Trip.com has replicated its domestic competitive advantages in overseas markets, focusing on direct channels and strong supplier relationships [2][29][30] Additional Important Insights - The company emphasizes service quality and customer loyalty over price competition, which aligns with its long-term strategy [2][20] - The overall competitive landscape in the domestic OTA market remains stable, with a focus on enhancing customer experience rather than aggressive pricing strategies [2][20]

Financial Data and Key Metrics Changes - All 11 director nominees have been elected, indicating strong shareholder support for the board [7] - Stockholders approved the advisory compensation of Expedia Group's named executive officers, reflecting confidence in management [8] - Ernst and Young has been ratified as the independent registered public accounting firm for fiscal year 2025, ensuring continued oversight [8] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were provided in the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were provided in the meeting Company Strategy and Development Direction and Industry Competition - The compensation committee considers various factors in establishing executive officer compensation, including business performance and competitive market data, which indicates a strategic focus on aligning executive pay with company performance [10] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting Other Important Information - The meeting was conducted in accordance with Delaware General Corporation Law and the company's bylaws, ensuring compliance and proper governance [7] Q&A Session Summary Question: Regarding the compensation committee's use of the SEC's compensation metric - The compensation committee does not rely specifically on the SEC's compensation metric but reviews various factors including prior year performance and competitive compensation data when setting executive compensation [9][10]

Group 1: JD Delivery Expansion - JD Delivery has announced plans to expand its full-time rider workforce to 150,000, having already surpassed 100,000 riders ahead of schedule by nearly two months [1] - The daily order volume for JD Delivery has exceeded 25 million, supported by over 1.5 million quality restaurant partners [1] - The expansion of the rider team is a necessary response to the rapid growth of the business, aimed at improving delivery efficiency and meeting increasing market demand [1] Group 2: Meituan Travel Insights - Meituan Travel reported a year-on-year increase of over 428% in orders for county-level scenic spots during the Dragon Boat Festival holiday [2] - The growth in tourism orders is driven by the "Dragon Boat Economy" and "Parent-Child Economy," with Guangdong, Xinjiang, and Guizhou ranking among the top provinces for order growth [2] - The rapid growth of county-level scenic spots indicates a shift in the tourism market's consumption structure, providing new economic momentum for local development [2] Group 3: Courier Regulations Update - The State Council's decision to amend the "Interim Regulations on Express Delivery" officially took effect on June 1, introducing a new chapter on "Express Packaging" [3] - The amendments promote green, reduced, and recyclable packaging in the express delivery industry, encouraging the use of new technologies and materials [3] - This policy will have a profound impact on the express delivery industry, requiring companies to optimize packaging materials and processes to comply with new environmental standards [3]

Summary of Key Points from Conference Call Records Industry Overview - The Hong Kong stock market is experiencing increased volatility due to future uncertainties, despite continued inflows from southbound funds. High-dividend products and U.S. Treasury bonds are creating a siphoning effect on equity assets, suppressing Hong Kong stock performance [1][2]. Company Performance Highlights Tencent - Tencent's Q1 2025 performance is strong, with revenue growth expected at approximately 10% and profit growth between 14% to 15%, reaching 255 billion RMB. The growth is driven by the gaming sector (notably "Honor of Kings" and "Peacekeeper Elite") and advertising, particularly from video ads [1][4]. - The gaming segment saw a growth rate of 24%, exceeding market expectations, supported by strategic initiatives and new game launches planned for Q3 and Q4 [4][6]. - Advertising revenue grew by 20%, driven by improved ROI from video ads, benefiting from AI enhancements [4][6]. Alibaba - Alibaba's Q1 2025 results are in line with expectations, with total revenue of 236.4 billion RMB and adjusted net profit of 29.8 billion RMB. The Taobao and Tmall group's customer management revenue grew by 11.8%, surpassing expectations [1][7]. - The cloud business's revenue growth is in line with market expectations, but profit performance was weaker than anticipated, raising market concerns [1][8]. - The company is optimistic about the full year, projecting a revenue growth rate of 7% to 8% for Taobao and Tmall [7][8]. Meituan - Meituan's Q1 2025 results exceeded expectations, with total revenue around 86.5 billion RMB and a NON-GAAP net profit of approximately 10.9 billion RMB, driven by improvements in local business operations [1][10]. - However, Meituan faces significant competitive pressure from JD and Alibaba, with expectations of a 30% year-on-year decline in food delivery operating profit in Q2 [10][13]. NetEase - NetEase's Q1 2025 performance in mobile and PC games exceeded expectations, leading to an upward revision of revenue and net profit forecasts, with net profit growth expected at around 18% [1][16]. - The company has significantly reduced marketing expenses, enhancing profitability [16][17]. Kuaishou - Kuaishou's advertising business showed weak performance in Q1, with an expected annual revenue growth of around 12%. The focus remains on AI developments, particularly in the Keling AI sector [3][18]. Ctrip and Tongcheng Travel - Tongcheng Travel reported stable revenue in Q1 2025, with international flight business as a highlight. The company is expected to maintain growth in its core OTA business [3][21]. - Ctrip's Q1 2025 revenue growth reached 16%, driven by differentiated product offerings targeting various consumer segments [27][30]. Market Trends and Competitive Landscape - The Hong Kong stock market is currently undervalued, with the Hang Seng Index and Hang Seng Tech Index trading at approximately 20x and 10x P/E ratios, respectively, compared to historical averages [2]. - The takeaway from the competitive landscape indicates that while companies like Meituan and JD are facing intense competition, they also have significant market stability and potential for long-term growth [10][13]. Additional Insights - The gaming industry in Q1 2025 showed better-than-expected profit performance, benefiting from structural optimization and cost control measures [5]. - The overall sentiment in the market remains cautious due to external factors such as U.S. court rulings affecting tariff policies and delayed interest rate cuts [2][6]. This summary encapsulates the key points from the conference call records, highlighting the performance of major companies within the Hong Kong internet sector and the broader market dynamics.

Core Insights - The report highlights a significant increase in travel consumption during the Dragon Boat Festival, driven by the overlap with International Children's Day, leading to a surge in family-oriented travel products and accommodations [1][3] Group 1: Travel Trends - Domestic and international flight prices saw a decline during the Dragon Boat Festival, with domestic flight prices dropping over 20% on the first day of the holiday [1] - The booking volume for outbound connecting flights increased by nearly 20% year-on-year, outpacing the overall growth rate of outbound flight bookings by 5 percentage points [1] - The analysis indicates that travelers opting for connecting flights tend to have longer travel periods, higher price sensitivity, and are primarily from non-first-tier cities [1] Group 2: Accommodation Preferences - There was an 80% year-on-year increase in bookings for family group travel products during the holiday, with a more than 200% increase in bookings for family-themed hotel rooms [3] - High-star hotels and boutique accommodations saw a notable rise in demand, particularly in first-tier cities like Shenzhen, Beijing, Shanghai, and Guangzhou [3] - Local and surrounding hotel stays in Suzhou experienced a 31% year-on-year increase in occupancy, indicating a trend towards "staycations" [3] Group 3: Cultural and Recreational Activities - The popularity of non-heritage markets surged, with related content visits increasing by over 300% during the holiday [4] - Theme parks and water parks saw significant booking increases, with theme park ticket bookings up 127% and water park ticket bookings up 165% year-on-year [4] - Popular theme parks included Beijing Universal Resort, Shanghai Disneyland, and Zhuhai Chimelong Ocean Kingdom, reflecting strong consumer interest in recreational activities [4]

Core Insights - The report released by Fliggy on June 2 indicates that per capita travel spending continues to grow compared to last year, with "light vacation" products, including tickets, camping, and chartered tours, seeing a year-on-year increase of 8.8% [1] - During the three-day holiday without adjustments, short-distance self-driving and nearby vacation options have become the preferred travel methods [1] - Fliggy's data shows that the booking volume for domestic car rental services increased by approximately 30% during the Dragon Boat Festival period compared to the previous year [1]

Core Insights - The tourism market in Hainan is experiencing a surge in family-oriented travel during the overlapping holidays of Dragon Boat Festival and Children's Day, with family orders accounting for 35% of bookings [2] - Hotel bookings for family rooms have seen a significant increase, with a 45% rise in searches for family-friendly accommodations compared to the same period last year [2][3] Group 1: Hotel Industry - Hotels in Hainan are adapting to the growing demand for family travel, with many reporting increased inquiries and bookings for family rooms and activities [3] - Specific hotels, such as Hyatt Place and voco, are offering tailored family packages that include various activities, enhancing the overall experience for families [3] Group 2: Activities and Attractions - Various unique activities are being organized across Hainan to attract family visitors, such as the "Children's Day Painting Carnival" at the Wenchang Mulan Bay, which allows children to engage creatively while learning about local culture [3] - Popular attractions like the Donggu Ridge Scenic Area are seeing increased family visits, with parents and children participating in outdoor activities to enjoy the natural beauty of the island [4] Group 3: Transportation Trends - The trend of renting cars for self-driving tours has gained popularity among families, with a 47% increase in rental bookings during the holiday period [4] - Hainan cities, particularly Sanya, are ranked among the top destinations for self-driving tours, indicating a shift in travel preferences among families [4] Group 4: Future Outlook - As the summer season approaches, Hainan's tourism enterprises are preparing to launch more diverse and high-quality products to meet the evolving demands of family travelers [4] - The "Tourism+" model is being utilized to enhance product offerings and service quality, aiming to provide a fulfilling experience for all visitors [4]

Core Viewpoint - The collaboration between Meituan and Marriott International aims to create a seamless membership experience that integrates accommodation and local lifestyle services, targeting younger consumers and emerging markets [3][5][10]. Group 1: Strategic Collaboration - Meituan and Marriott announced a strategic partnership to launch a joint membership program, providing a comprehensive travel service that includes "accommodation+" offerings [3][4]. - The partnership focuses on increasing Marriott Bonvoy membership registrations by leveraging both companies' resources in accommodation, dining, and local experiences [5][6]. - The collaboration is expected to enhance customer loyalty and attract high-value younger members amid intense competition in the hotel industry [5][11]. Group 2: Membership Benefits - The membership benefits include tier matching, where Meituan and Dazhong Dianping users can upgrade to corresponding Marriott Bonvoy levels based on their existing membership status [7][8]. - New members registered through Meituan or Dazhong Dianping can access low-threshold challenges to achieve higher Marriott membership tiers, significantly reducing the requirements compared to traditional pathways [8][10]. - Additional benefits include dining vouchers and discounts for new Marriott members, enhancing the overall value proposition for consumers [8][10]. Group 3: Market Trends and Consumer Insights - The hotel industry is witnessing a shift towards younger consumers, with a significant portion of Marriott's membership base being aged 30-40, alongside a growing number of younger families and students [10][11]. - Meituan's data indicates that 96% of platinum and above members have hotel accommodation needs, with a high demand for hotel stays among younger demographics [10][11]. - The collaboration is expected to drive significant increases in hotel bookings, as evidenced by an 88% surge in reservations on the first day of the membership integration [11][12]. Group 4: Expansion into Lower-Tier Cities - Marriott is focusing on expanding its presence in lower-tier cities, with 30%-40% of new hotel openings planned for third and fourth-tier cities, capitalizing on the growing consumer base in these regions [15][17]. - The trend shows that high-star hotel consumption in lower-tier markets is increasing, with notable growth in hotel bookings during peak travel periods [17][18]. - Meituan serves as a vital platform for reaching high-value consumers in these emerging markets, enhancing Marriott's ability to penetrate these areas effectively [14][17]. Group 5: Future Opportunities - The partnership opens up various possibilities for integrating services beyond traditional hotel offerings, such as dining, entertainment, and travel experiences, creating a more holistic consumer journey [20][25]. - The collaboration is positioned as a starting point for deeper integration of resources between Meituan and Marriott, aiming for a synergistic effect that exceeds the sum of their individual contributions [27].

Group 1: Marriott and Meituan Partnership - Marriott Bonvoy announced a partnership with Meituan to integrate resources in accommodation, dining, and local lifestyle, creating a comprehensive experience from hotel stays to local activities [1] - From now until May 27, 2026, Meituan and Dianping members can match their membership levels to corresponding Marriott Bonvoy levels and participate in membership challenges for exclusive benefits [1] - Members can also receive a hospitality voucher package worth up to 388 yuan, covering various experiences [1] Group 2: Domestic Flight Fuel Surcharge Adjustment - Starting June 5, 2025, domestic flight fuel surcharges will be adjusted, with routes of 800 kilometers or less exempt from fuel surcharges, while those over 800 kilometers will incur a fee of 10 yuan per passenger per segment [2] - This adjustment marks a decrease of 10 yuan compared to previous rates, reaching a near one-year low [2] Group 3: Shanghai Peace Hotel Renovation - The Shanghai Peace Hotel will be upgraded to a Raffles brand flagship hotel by 2027, in collaboration between Accor Group and Jin Jiang International [2] - Originally built in 1929, the hotel will continue operations during the renovation and will join the global flagship hotels of Raffles in Singapore and London [2] Group 4: New World Hotel Profit Forecast - New World Hotels announced an expected after-tax profit of no less than 7 million HKD for the fiscal year ending March 31, 2025, reversing a loss of approximately 20.5 million HKD for the previous year [3] - The profit increase is attributed to the sale of several loss-making subsidiaries and a memorandum of waiver with noteholders, relieving the company of certain liabilities [3] Group 5: Opening of Jiaxing Hilton Hotel - Jiaxing Hilton Hotel officially opened on May 29, featuring 340 rooms and suites, located in the core area of Jiaxing County's high-speed rail new city [4] - The hotel is strategically positioned near Xitang and is approximately 3.5 kilometers from Jiaxing South Station, providing quick access to major cities and airports in the Yangtze River Delta [4] Group 6: Departure of Director at Lujiazui - Lujiazui announced the retirement of director Li Zuoqiang, who will no longer serve on the board or any other position within the company [5]