Summary of the Conference Call on the China Leisure Sector Industry Overview - The report focuses on the **China Leisure Sector**, particularly the travel industry, which accounts for **10% of Chinese consumption** and is the strongest growth category in a subdued consumer spending environment [3][12]. Key Insights and Forecasts - **Domestic Travel Growth**: - Forecasted to grow at **4.8% CAGR** from 2025 to 2040, reaching **US$1,822 billion** by 2040, which is **2.3 times** the 2019 level [4][52]. - Expected to record a **7% CAGR** in domestic travel volume from 2025 to 2027 [4][45]. - Anticipated increase in domestic travel frequency to **7.9 times per year** by 2040, compared to **4.3 times** in 2019 [52][54]. - **Outbound Travel Growth**: - Projected to reach **US$628 billion** by 2040, with a **9% CAGR** from 2025 to 2040 [5][46]. - Chinese outbound travelers expected to increase to **368 million** by 2040, with a penetration rate rising from **11% in 2019 to 26%** [79][80]. - The EU and US are expected to account for over **40% of China's outbound travel spend** by 2040, up from **20% currently** [3][13]. - **Consumer Behavior Shifts**: - Travel spending is expected to shift towards **experiences** rather than physical goods, with a decline in shopping expenditure by approximately **15 percentage points** by 2040 [5][76]. - The average per-capita spending for outbound trips is projected to reach **US$1,709**, which is **104% of the 2019 level** [83]. Beneficiaries of Growth - Major beneficiaries identified include: - **Online Travel Agencies (OTAs)** - **Limited Service Hotels** - **Macau Gaming** - **Chinese Airlines** - **Japanese Retail** [6][14]. Market Dynamics and Challenges - The travel sector is correlated with the macroeconomy, suggesting potential headwinds from consumer downtrading and pricing pressures in the near term [4][51]. - Despite these challenges, lower travel costs are expected to drive domestic travel volume growth [51]. Long-term Implications - As Chinese tourists become the largest global travel cohort, their impact on global travel and consumer sectors, particularly luxury goods, hotels, airlines, and shopping malls, is expected to increase significantly [6][14]. - The report emphasizes the importance of demographic shifts, supply expansion, and increased leisure time as key drivers for the anticipated growth in both domestic and outbound travel [61][62]. Conclusion - The China Leisure Sector is poised for significant growth, driven by increasing domestic travel frequency and a robust outbound travel market. The evolving consumer preferences towards experiences and the anticipated demographic shifts will reshape the travel landscape, presenting both opportunities and challenges for stakeholders in the industry [3][5][14].

Core Insights - Expedia shares reached a record close, indicating strong market performance driven by the company's strategic embrace of AI technology to enhance business operations rather than viewing it as a competitive threat [1] Company Summary - The online travel agent, Expedia, has successfully integrated AI into its business model, which has contributed to its recent stock performance [1] Industry Summary - The travel industry is witnessing a shift as companies like Expedia leverage AI to improve efficiency and customer experience, setting a precedent for others in the sector [1]

Core Insights - Expedia reported quarterly earnings of $7.57 per share, exceeding the Zacks Consensus Estimate of $7.21 per share, and up from $6.13 per share a year ago, representing an earnings surprise of +4.99% [1] - The company generated revenues of $4.41 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.61% and increasing from $4.06 billion year-over-year [2] - Expedia has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of Expedia's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.85 on revenues of $3.27 billion, while for the current fiscal year, the estimate is $14.33 on revenues of $14.34 billion [7] Industry Context - The Internet - Commerce industry, to which Expedia belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Core Insights - Expedia reported Q3 CY2025 revenue of $4.41 billion, exceeding Wall Street expectations by 2.9% with an 8.7% year-on-year growth [1][5][8] - The company provided a positive revenue guidance for Q4 CY2025 at $3.41 billion, which is 4.2% above analyst estimates [1][5][8] - Non-GAAP profit per share was $7.57, surpassing analysts' consensus by 9% [1][8] Company Overview - Expedia, originally part of Microsoft, is recognized as one of the leading online travel agencies globally [3] Revenue Growth - Over the last three years, Expedia's sales grew at a compounded annual growth rate of 8.3%, which is below the benchmark for the consumer internet sector [4] - The current quarter's revenue growth of 8.7% is a positive sign, but future projections indicate a slowdown, with analysts expecting a 4.5% revenue growth over the next 12 months [5] Financial Performance - Adjusted EBITDA for the quarter was $1.45 billion, with a margin of 32.8%, exceeding analyst expectations [8] - Operating margin improved to 23.5%, up from 18.8% in the same quarter last year [8] - Free cash flow was reported at -$686 million, a decline from $921 million in the previous quarter [8] Booking Growth - Revenue generation is driven by increasing the number of stays booked and the commissions charged on those bookings [9]

Core Insights - The online travel agency is experiencing a resurgence in travel demand across various income levels, indicating a broad recovery in the travel sector [1] - Despite the overall increase in demand, some travel companies report that low-income consumers are still hesitant to spend on travel [1] Group 1 - The online travel agency is seeing travel demand return across income levels [1] - Several travel companies note that low-income consumers are still holding back [1]

Group 1 - The company, Booking, has observed "continued momentum with steady travel demand" for the holiday quarter [1]

New York, NY, Oct. 28, 2025 (GLOBE NEWSWIRE) -- NusaTrip Inc (Nasdaq: NUTR) (“NusaTrip” or the “Company”), a leading travel ecosystem with geographical specialization in Southeast Asia (“SEA”) and Asia-Pacific (“APAC”) today said that, on October 15, 2025, the Company responded to a request by The Nasdaq Stock Market LLC for certain information and documents. That request, received by the Company on October 9, 2025, followed an order received by NusaTrip the previous day from the U.S. Securities and Exchan ...

Core Viewpoint - NusaTrip Inc is currently facing a trading suspension by the SEC due to potential manipulation of its securities, which has raised concerns about the integrity of its stock trading activities [2][3][4]. Company Overview - NusaTrip Inc, established in 2015 and headquartered in Jakarta, Indonesia, is a leading travel technology platform focused on Southeast Asia (SEA) and Asia-Pacific (APAC) [6]. - The company has a growth strategy centered around acquisitions, having successfully integrated travel agencies like VLeisure and VIT in Vietnam, and is actively seeking to acquire more agencies in various countries including China, Hong Kong, and India [6]. SEC and Nasdaq Interaction - On October 9, 2025, the SEC suspended trading of NusaTrip's securities from 4:00 a.m. ET until 11:59 p.m. ET on October 22, 2025, due to concerns over potential price manipulation through social media recommendations [2][3]. - Following the SEC's order, NusaTrip responded to Nasdaq's request for information on October 15, 2025, but has not received further inquiries or a timeline for resolution from Nasdaq [4]. Trading Suspension Details - The SEC's action was taken under Section 12(k) of the Securities Exchange Act of 1934, indicating serious concerns about the trading practices surrounding NusaTrip's securities [3]. - NusaTrip has stated that it has not engaged in any price manipulation and is committed to cooperating fully with both Nasdaq and the SEC [4].

Group 1 - Trip.com (NASDAQ: TCOM) is outperforming optimistic projections with rapidly climbing share prices [1] - The importance of observing megatrends and technological advancements for investment insights is emphasized [1] - The focus on fundamentals, quality of leadership, and product pipeline is crucial for uncovering investment opportunities [1] Group 2 - The analyst has a beneficial long position in TCOM shares, indicating confidence in the company's future performance [2] - The article expresses personal opinions and does not involve compensation from any company mentioned [2]

Core Viewpoint - Tongcheng Travel reported solid financial results for 2Q25, with revenue and adjusted net profit showing year-on-year growth, indicating a positive outlook for the company and the online travel industry [1][2]. Financial Performance - 2Q25 revenue reached Rmb4.67 billion, reflecting a 10% year-on-year increase, while adjusted net profit was Rmb775 million, up 18% year-on-year, aligning with expectations [1]. - The company maintains its earnings per share (EPS) forecasts of Rmb1.41 for 2025, Rmb1.57 for 2026, and Rmb1.74 for 2027 [1]. Operational Highlights - Core OTA revenue increased by 14% year-on-year, with accommodation reservation revenue rising by 15% year-on-year [2]. - The average daily room nights reached a record high, driven by the exploration of new accommodation booking scenarios [2]. - The average daily rate (ADR) showed positive year-on-year growth due to a higher proportion of three-star and above hotels [2]. - Transportation ticketing revenue grew by 8% year-on-year, while revenue from other businesses surged by 28% year-on-year, primarily from hotel management [2]. - The number of annual paying users (APU) increased by 10% year-on-year to 251.7 million, marking a record high [2]. Outbound Travel Business - The outbound travel segment is projected to turn profitable this year, with outbound air tickets contributing approximately 6% to transportation revenue [3]. - The volume of international air tickets in 2Q25 rose nearly 30% year-on-year, achieving a record high [3]. Market Outlook - The online travel industry is expected to experience stable growth, with Tongcheng Travel identified as a high-certainty target in domestic demand consumption [4]. - Improvements in marketing efficiency and the expansion of outbound travel are anticipated to enhance margins, alongside growth from the hotel management business [4].