2022-06-28 04:16Financial Data and Key Metrics Changes - For Q1 2022, Trip.com Group reported net revenue of RMB4.1 billion, which was flat year-over-year and decreased by 12% quarter-over-quarter [20] - Accommodation reservation revenue was RMB1.5 billion, representing an 8% decrease year-over-year and a 24% decrease quarter-over-quarter, recovering to 48% of the 2019 level [20] - Transportation ticketing revenue was RMB1.7 billion, reflecting a 10% increase year-over-year and a 10% increase quarter-over-quarter, recovering to 50% of the 2019 level [21] - Adjusted EBITDA was RMB91 million for Q1, compared to negative RMB216 million in the same period last year [24] - As of March 31, 2022, the company had cash and cash equivalents totaling RMB63.3 billion or $10 billion [25] Business Line Data and Key Metrics Changes - Domestic hotel bookings increased by more than 20% year-over-year in January and February, but were impacted by the Omicron outbreak in March [9][10] - Air ticket bookings on global platforms increased over 270% year-over-year, with Trip.com achieving approximately 400% growth [11][31] - Hotel bookings on global platforms increased by more than 25% above 2019 levels in Q1 [12] - Packaged tour revenue was RMB124 million, representing a 27% decrease year-over-year and a 30% decrease quarter-over-quarter, recovering to 12% of the 2019 level [22] Market Data and Key Metrics Changes - The domestic travel market in China faced severe impacts due to pandemic controls, with air passenger volume down by 70% to 90% [26] - In Southern and Western China, hotel bookings have surpassed 2019 levels recently [10][27] - International markets showed robust recovery momentum, particularly in Europe, the U.S., and Asia, benefiting from the relaxation of travel restrictions [27] Company Strategy and Development Direction - The company aims to capture travel demand by enhancing product capabilities and service quality, focusing on both domestic and international markets [6][8] - Trip.com continues to strengthen its value proposition to hotel owners and users through product innovations and loyalty programs [13][14] - The company is adapting its strategies to be flexible and responsive to the fast-changing market environment [8][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term travel demand despite short-term challenges due to the pandemic [6][10] - The company anticipates a recovery in the Chinese market once restrictions are eased, similar to trends observed in international markets [6][27] - Management highlighted the importance of maintaining liquidity and effective cost control to navigate ongoing challenges [52] Other Important Information - The company has implemented corporate responsibility initiatives, including support for rural tourism and local accommodations [17][18] - Trip.com has streamlined operations and achieved significant cost savings, with adjusted operating expenses down 11% year-over-year [23][52] Q&A Session Summary Question: What is the global expansion strategy given the current situation? - Management emphasized the integration and upgrade of supply chain and technology for international brands, with strong recovery in air ticket bookings and hotel reservations [31] Question: How does the current economic situation affect recovery expectations? - Management believes demand for domestic and global travel remains solid, with recent recovery in hotel reservations in less restricted areas [34] Question: What is the early booking situation for summer? - Management noted limited visibility due to short booking windows but remains optimistic about long-term growth potential [37] Question: What strategies are in place if travel controls continue? - Management highlighted the importance of adapting to government control measures and noted that recent relaxations have led to increased bookings [39] Question: What are the trends for ADR and take rate in the accommodation segment? - Management reported a decline in ADR due to pandemic impacts, with expectations for recovery as travel restrictions ease [43] Question: How does the company view structural changes in travel preferences? - Management sees opportunities in short-haul travel and has made significant progress in content-driven strategies to enhance user engagement [46] Question: What support is the government providing to the tourism industry? - Management noted ongoing discussions with authorities to improve the business environment and reduce disruptions from COVID-19 [49] Question: How sustainable is the company's cash position? - Management confirmed a strong cash position with RMB33.3 billion on hand and effective cost control measures in place [52]