Trip.com Group posts 32% drop in Q2 revenue, $6 million net income
09/22/2022|3:16:13 PM|ChinaTravelNews

Trip.com Group reported that its net revenue decreased by 32% year-on-year to RMB  4.0 billion (USD 598 million) for the second quarter this year. The company said operation results during the quarter were materially and adversely affected. 

Net income for this quarter was RMB  43 million (USD 6 million), which improved from net loss of RMB  1.0 billion for the previous quarter.

Staycation travel continued to serve as a major contributor to the recovery of the Chinese domestic market, with local hotel bookings increasing by over 30% compared to the same period in 2019.

Both air-ticket and hotel bookings on global platforms increased over 100% year over year in the second quarter.

"In the second quarter, the global travel industry has made continued progress towards full recovery. The recovery momentum in Europe and the United States remained robust, and the rebound of travel activities in the Asia-Pacific region also sped up due to further relaxation of travel restrictions," said James Liang, Executive Chairman. "With our product innovation and service enhancement, we are confident in further strengthening our competitive position and capturing the pent-up demand. "

Accommodation reservation revenue for the second quarter of 2022 was RMB 1.4 billion (USD 203 million), representing a 45% decrease from the same period in 2021 and a 6% decrease from the previous quarter, primarily due to the continued disruptions resulting from the COVID-19 resurgence in China.

Transportation ticketing revenue for the second quarter of 2022 was RMB 1.8 billion (USD 263 million), representing a 15% decrease from the same period in 2021, primarily due to the continued disruptions resulting from the COVID-19 resurgence in China. Transportation ticketing revenue increased by 6% from the previous quarter, primarily driven by strong recovery of air travel in the overseas market.

Packaged-tour revenue for the second quarter of 2022 was RMB 122 million (USD 18 million), representing a 67% decrease from the same period in 2021 and a 2% decrease from the previous quarter, primarily due to the continued disruptions resulting from the COVID-19 resurgence in China.

Corporate travel revenue for the second quarter of 2022 was RMB 210 million (USD 31 million), representing a 46% decrease from the same period in 2021 and a 5% decrease from the previous quarter, primarily due to the continued disruptions resulting from the COVID-19 resurgence in China.

Sales and marketing expenses for the second quarter of 2022 decreased by 41% to RMB 826 million (USD 123 million) from the same period in 2021 and decreased by 2% from the previous quarter, primarily due to a decrease in expenses relating to sales and marketing promotion activities. Sales and marketing expenses as a percentage of net revenue was 21% for the second quarter of 2022.

As of June 30, the balance of cash and cash equivalents, restricted cash, short-term investment, held to maturity time deposit and financial products was RMB 65.6 billion (USD 9.8 billion).