Tuniu(US:TOUR)2020-12-01 15:28Financial Data and Key Metrics Changes - For Q3 2020, net revenues were RMB123.5 million, representing a year-over-year decrease of 86% from Q3 2019, primarily due to COVID-19 impacts [16] - Revenues from packaged tours decreased by 88% year-over-year to RMB86.4 million, accounting for 70% of total net revenues [16] - Gross margin improved to 53% in Q3 2020, compared to 45% in Q3 2019 [17] - Operating expenses decreased by 71% year-over-year to RMB127.8 million [17] - Net loss attributable to ordinary shareholders was RMB56.9 million in Q3 2020 [18] Business Line Data and Key Metrics Changes - Revenues from other services decreased by 65% year-over-year to RMB37.1 million, accounting for 30% of total net revenues [17] - Customized tour GMV increased by 8 times compared to Q2 2020, indicating a shift towards personalized tourism products [11] - Sales GMV from the Taikoo app increased by over 20 times compared to Q2 2020, showcasing the effectiveness of the new sales model [8] Market Data and Key Metrics Changes - The domestic travel market showed signs of recovery, with 637 million tourists traveling within China during the October National Day holiday, reaching almost 80% of 2019 levels [6] - The company expects Q4 2020 net revenues to be between RMB112.8 million and RMB135.4 million, representing a 70% to 75% decrease year-over-year [19] Company Strategy and Development Direction - The company is focusing on the domestic travel market while remaining cautious about outbound travel due to ongoing uncertainties [23] - Tuniu is committed to enhancing customer experience through innovative product offerings and improved service standards [11][24] - The introduction of the Hotel + X product model aims to cater to changing consumer preferences in the post-pandemic era [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the domestic travel industry, supported by recent developments in COVID-19 vaccine trials [23] - The company is well-positioned to capitalize on the recovery momentum due to its established customer base and industry experience [23] - Management anticipates that outbound travel will eventually recover, and Tuniu will be among the first to benefit when restrictions are lifted [26] Other Important Information - The company has maintained its local tour operators throughout the pandemic, ensuring service continuity for tourists [12] - Tuniu has implemented a direct procurement strategy to enhance product quality and pricing [10] Q&A Session Summary Question: What is the management's view on the recovery of the travel industry and strategy to catch the recovery momentum? - Management highlighted the encouraging news regarding COVID-19 vaccines and the positive trends in domestic tourism, emphasizing a focus on the domestic market while remaining cautious about outbound travel [23] Question: How is Tuniu adapting its product offerings in response to changing customer needs? - Management discussed the commitment to customer-first principles, the introduction of new itineraries, and the success of the Taikoo app in acquiring customers [24][25]