By LI Rujia
Online travel agency Trip.com saw revenue in Q2 grow 180 percent from a very low base one year ago. Revenue of 11.2 billion yuan was up by 29 percent compared to the pre-pandemic 2019 level, a remarkably small annualized growth rate.
With almost no tourists going very far anywhere in the world this time last year, tripling revenue is not much to write home about. And, much as the decline was, the increase is largely down to factors beyond Trip.com's control.
There were only 2.4 billion domestic tourist visits in the first half of 2023, a year-on-year increase of 63.9 percent on the same period last year. In Q2 trip numbers were much less than double last year's numbers.
Total tourism expenditure reached 2.3 trillion yuan, again, less than double last the weak numbers seen last year.
The news is not all bad. Domestic hotel bookings through Trip.com increased by 170 percent year-on-year, and total hotel bookings by 160 percent. Air ticket sales doubled.
Compared to domestic tourism, outbound tourism is still idling. According to the China Air Transport Association, international passengers in Q2 reached 6.1 million, only a third of 2019's highs. However, Trip.com performed better than the overall market, with hotel and airline ticket bookings in Q2 of over 60 percent up to 2019.
Ctrip.com said demand for leisure travel will drive sales in Q3, especially during the National Day vacation.
Trip.com's stock on the HKEX closed 7.82 percent lower at HK$304 on Tuesday after the financial report was released.
