携程集团20251121

Summary of Ctrip Group's Conference Call Company Overview - Company: Ctrip Group (携程集团) - Date: November 21, 2025 Key Points Industry and Market Dynamics - Ctrip's domestic and outbound tourism is entering a low season, while overseas tourism is entering a peak season, with Trip.com’s revenue share expected to rise from 13% in Q3 to 17-18% in Q4, indicating a seasonal revenue structure change [2][5] - The company has not been significantly impacted by new competitors due to rational competition post-pandemic, with brands focusing on core positioning and customer loyalty rather than price wars [2][6] - The average daily rate (ADR) for hotels has shown signs of recovery, with a 15% increase in domestic hotel bookings in Q3 and a return to 2019 levels for outbound travel bookings [3][4] Financial Performance - In Q3 2025, domestic market performance was strong, particularly in leisure travel, with a 10% growth rate maintained in the first two months of Q4 [3] - Trip.com is expected to maintain over 50% growth in Q4, despite a high base from the previous year, with hotel business growth exceeding 40% of total revenue [3][4] AI Integration and Technology - Ctrip is implementing an "AI everywhere" strategy, integrating AI into its app for customer service, sales optimization, and user experience enhancement [2][7] - The company is developing an AI itinerary planning assistant that generates travel recommendations based on user inputs, aiming to improve operational efficiency and customer engagement [8][10] Revenue Structure and Commission Rates - Ctrip has no immediate plans to adjust commission rates for domestic or outbound businesses, focusing instead on market share growth [4][11] - Future commission rate increases may occur for Trip.com, currently at 8-9%, as the company prioritizes market share over immediate profitability [11] Market Recovery and Competition - The APAC market is recovering rapidly, with capacity restored to 90%, and Ctrip expects to capture more market share as some overseas OTAs have not returned to the Chinese market [13][15] - The company is focusing on high-value markets like Hong Kong and Singapore, where it has achieved profitability and is shifting marketing strategies from brand advertising to performance-based advertising [17][18] Challenges and Strategic Responses - Recent events in Japan have led to increased order cancellations, but Ctrip is adapting by promoting alternative destinations and monitoring travel trends [12] - The company is aware of the unique competitive landscape in Japan and Korea, where local OTAs dominate, and is adjusting its strategies accordingly [22][23] Future Outlook - Ctrip plans to maintain its marketing budget at current levels, with no immediate expansion expected, while anticipating a stable loss rate in 2026 [26][27] - The company is optimistic about its growth trajectory, particularly in the APAC region, and aims to leverage AI and data analytics to enhance its service offerings and operational efficiency [10][20] Additional Insights - Ctrip's focus on high-end international travel customers through Trip.com aligns with its strategy to enhance user experience and reduce reliance on third-party platforms [24][25] - The company is committed to optimizing its revenue structure by increasing the share of higher-margin segments like hotel bookings [11][19]