China-based Trip.com Group has announced its results for the first quarter (Q1) of 2023.
The company’s net revenue increased by 124% year-on-year and exceeded that for the same period in 2019, the pre-Covid level.
Net income for the first quarter of 2023 was 3.4bn yuan (US$491 million). This improved from a net loss of 1.0bn yuan for the same period in 2022 and net income of 2.1bn yuan for the fourth quarter of 2022.
Adjusted EBITDA [earnings before interest, taxes, depreciation and amortisation] for the first quarter was 2.8bn yuan (US$410 million). Adjusted EBITDA margin was 31%, compared to 2% for the same period in 2022 and 6% for the fourth quarter of 2022.
Trip.com’s hotel statistics
- Domestic hotel bookings grew by more than 100% year-on-year.
- Same-city staycation hotel bookings grew by 150% compared to those for the same period in 2019, the pre-Covid level.
- Outbound hotel and air reservations recovered to over 40% of those for the same period in 2019, the pre-COVID level. This is despite a 15% recovery in the overall outbound aviation market.
Trip.com’s executive chairman James Liang commented: “During the first quarter of 2023, there has been an upsurge in both domestic and outbound travel activities in China. We are encouraged to see the world becoming more open and connected at the start of 2023 and remain positive for the outlook of the global travel industry and the opportunities that lie ahead.”
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The company’s CEO Jane Sun added: “Over the past three years, we have focused on strengthening our supply chain, content offerings and service quality. Such improvements empower us to better capture the pent-up demand for travel and establish a solid foundation for sustainable growth.”
GlobalData analysis finds that Trip.com has emerged as a global leader despite ongoing Covid-19 challenges while operating in a highly competitive tourism industry.