Travel Recovery, Surging Performance, Ctrip's Q2 Earnings Report "Explodes" | Financial Report Insights

The haze of the epidemic continues to dissipate, and the global tourism industry continues to show a strong recovery. Ctrip, the industry leader, has achieved outstanding results in the second quarter.

On Tuesday, September 5th, Ctrip Group announced its unaudited financial performance for the second quarter and first half of 2023.

The results show that Ctrip's net revenue in the second quarter increased by a staggering 180% year-on-year to RMB 11.2 billion, surpassing analysts' expectations of RMB 10.78 billion. It is also 29% higher than the pre-pandemic level in the same period of 2019.

Ctrip's gross profit in the second quarter increased by 203.9% year-on-year to RMB 9.24 billion, surpassing analysts' expectations of RMB 8.72 billion. Net profit was RMB 648 million, compared to RMB 43 million in the same period of 2022, with a year-on-year growth rate of a whopping 1407.0%. Net profit attributable to Ctrip Group shareholders was RMB 631 million, compared to RMB 69 million in the same period of 2022, with a year-on-year growth of 814.5%.

"During the second quarter of 2023, domestic and international travel demand remained strong," said Liang Jianzhang, Executive Chairman. "Despite limited aviation capacity recovery, the strong rebound in tourism activities reflects the strong desire of travel enthusiasts to explore the world. We remain optimistic about the sustained demand for the tourism industry and its long-term market prospects."

Business performance exceeds expectations, transportation ticketing revenue increases by 173% YoY

As suppressed travel demand continues to explode, the global tourism market is experiencing a strong recovery, and Ctrip's various businesses are flourishing.

Revenue from accommodation bookings increased by 216% year-on-year to RMB 4.29 billion, slightly higher than analysts' expectations of RMB 4.2 billion. Among them, domestic hotel bookings in the second quarter increased by 170% year-on-year, with an increase of over 60% compared to the same period in 2019.

Revenue from transportation ticketing increased by 173% year-on-year to RMB 4.81 billion, surpassing analysts' expectations of RMB 4.68 billion.

Ctrip stated that the volume of outbound hotel and flight bookings has recovered to over 60% of the same period in 2019 before the pandemic. In comparison, the international aviation passenger volume for the entire industry has only recovered to 37% of the same period in 2019.

Ctrip also mentioned that the volume of flight bookings on its global online travel platform has increased by over 120% year-on-year, almost doubling compared to the same period in 2019.

Revenue from group tours was RMB 722 million, higher than analysts' expectations of RMB 603.2 million, and only RMB 122 million in the same period last year, with a staggering year-on-year growth rate of 492%.Earnings Report