Trip.com, China’s largest online travel site, posts Q2 profit as global bookings surge
Trip.com, China’s biggest online travel site, said today it turned a profit in the second quarter from a loss the previous year as global bookings improved despite the continued fallout of Covid-19 at home.
Trip.com earned 43 million yuan, or $6 million, in the three months to June, compared with a loss of 659 million yuan a year earlier. Revenue fell 32% from a year earlier to 4.0 billion “mainly due to continued disruptions resulting from the resurgence of Covid-19 in China”, the company said. Airline and hotel bookings on its global platforms were up more than 100% year-over-year in the second quarter, it noted.
“Despite challenges in China’s domestic market during the first two months of the second quarter, fundamental travel demand remained strong,” CEO Jane Sun said.
Executive Chairman James Liang said in a statement: “The global travel industry has made continued progress towards a full recovery. Recovery momentum in Europe and the United States remained robust, and the rebound in travel business in the Asia-Pacific region also accelerated due to further easing of travel restrictions,”
“We are confident in strengthening our competitive position and capturing pent-up demand,” Liang said.
U.S.-traded Trip.com shares are down 15% in the past year; they fell 8% today before the announcement.
Trip.com has three billionaires on its board – Baidu CEO Robin Li, Sequoia China founding managing partner Neil Shen, and H Group hotel chain founder Ji Qi. Shen and another member, JP Gan, were members of the Forbes Midas 2022 list.
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