Q4 2021 Trip.com Group Ltd Earnings Call
You all for standing by and welcome to the trip Dotcom Group 2021 Q4 earnings conference call.
All participants are in a listen only mode there'll be a presentation followed by a question answer session. If you would wish to ask a question you will need to press the stocky fully by the number one on your telephone keypad I would now like to hand, the conference over to MS. Michelle Qi IR director. Please go ahead.
Yeah.
Thank you good morning, and welcome to trim don't come group's fourth quarter and full year of 2021 .
Joining me today on the call are Mr. James Liang Executive Chairman of the Board Ms. Jane Sun, Chief Executive Officer, and MS. Cindy Wang Chief Financial Officer.
During this call we will discuss our future outlook and performance, which are forward looking statements made under the safe Harbor provision of the U S try based procure until litigation Reform Act of 1995.
Forward looking statements involve inherent risks and uncertainties.
As such our results may be materially different from the views expressed today.
Sure.
Uncertainties are outlined in chip don't come group's public filings with the Securities and Exchange Commission.
Sure they'll come group does not undertake any obligation to update any forward looking statements, except as required under applicable law, James Jane and Cindy will share in all strategy and business update.
Highlights and financial performance for the fourth quarter of 2021 as well as outlook for the first quarter of 'twenty to 'twenty two.
I'll turn the prepared remarks, we will have a Q&A session.
Was that our turn the call over to Jim.
James Please.
Yeah.
Thank you Michelle Thank you everyone for joining us on the call today.
Looking back 2021.
It was a year full of change challenges and opportunities.
Okay.
Its a new virus variants.
Thank you Linda.
Lockdowns set a bumpy path for the global travel industry recovery.
So paved the way for sustainable development.
Twists and turns of the pandemic.
<unk> taken the opportunity to further diversify our products.
Self service quality and upgrades.
Okay.
In the China domestic market.
We continue to maintain our competitive edge in the long distance travel market, while also building new strength, a short haul travel.
Our strong performance reflected how much that our core competency.
So as opposed to it.
And then we are able to unleash.
Growth potential as long haul travel recovers.
Meanwhile.
We are encouraged to see that both user stickiness and user engagement.
<unk> channel.
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In Q4.
The number of data intensive users of content channel has more than doubled year over year.
The user interaction.
<unk> sponsored a flywheel effect, which will continue to drive up all contents conversion rates.
In February .
Conversion rate has doubled when compared to the same period 2021.
Without quality user base and extensive marketing resource.
It sometimes platform will provide long lasting value for our business.
Partners.
While the crowd development remains uncertain.
Many countries have already started to roll back travel restrictions.
All of our key brands continues to make progress on the path to recovery.
Further improvements.
Some months.
In the first two months of 2022.
Reservations now oversee spreads increased by over 200% year over year.
The bookings in Europe has achieved faster growth.
Asia markets lifting tonnage to see many countries announced plans to relax.
Travel policies.
Such opportunities that further enhanced our products' competitive, especially for vacations and weekend tourists.
So we effectively localize the campaigns that are capped.
Our brand top of the mind.
Can you use it takes yes.
August .
Finally.
I would like to.
Progress ESG development.
We made sustained efforts and promote.
Rural Revitalization initiative.
With H Chip Telecom group.
But she's already opened by the end of 2021.
Secondly, we strive to build an inclusive workplace.
Group has launched a hybrid working model starting March giving qualified employees the option to work remotely all certain days in a week.
We believe the promotion of the kinds of work it is a multi hawaii.
Company employees and society.
It helps improve the employee satisfaction without compromising efficiency.
It also helps the environmental protection.
Contributions to families supports female career development and create positive impact on society and the economy.
We also newly established.
Oh, Yes, she committee to oversee and integrate sustainability practices into our daily business operations.
The relatively recovery will not always be easy.
Yeah. So we are prepared to embrace another challenging and exciting year.
Over the past two years, although the world has taken some discourse on its path to recovery.
Up and down eventually lead us to building stronger resilience.
Got it if our local focus global vision strategy, we look forward to helping people from every corner of the world.
Oh perfect trips very soon.
With that.
I'll turn the call over to Jim for some operational highlights.
Thank you Joe.
Every one.
To start with Oh, Dear Oh, Praful nice I would like to start with a quick overview of Q4 and the full year of 10 patients or what.
The industry experienced a call that there was second.
And at least cause seasonality Q4 chips I'll call group delivered a solid performance.
Fourth quarter.
Total net revenue.
Largely stable year over year, China domestic market with still a lot of pressure because of the new wave of infections and erratic development Amit from case. It. Nevertheless, we're able to maintain our competitive edge outpacing the industry.
This across business lines.
Q4 domestic hotel bookings.
That was.
It was higher than the pre COVID-19 level.
The industry grows like 20% 25%.
I went domestic airport.
Also recovered much faster than the market performance.
For the full year authenticity, what our total net revenues increased by 9% year over year.
Mainly driven by the recovery of our domestic business.
Our core OTC threat achieved the T N D of over RMB 500, India.
U S D 78 billion.
Close to 30% year over year.
Two of our effective cost control and efficiency improvement.
A positive adjusted EBITDA margin of 6% for the four year of 20th century, what Sanjay 21, with an acceleration year for us.
Domestic market, we developed in newsprint.
Short haul travel and speed it up.
The construction of content platform.
Customers at the center of our business.
Also upgraded our loyalty program.
Extend it rewards offerings and to benefit more loyal customers.
While our international brands continue to gain market share.
Let's see market with higher efficiency.
I would like to highlight all watch these things all four areas.
First short haul travel.
Two years into a pandemic short haul travel remain popular.
A key contributor to our domestic recovery during the past year.
In Q4, our aim to prevent Shaw hotel bookings grew over 30% compared to pre Covid 1919 level with local hotel bookings increased.
Over 50%.
Such strong performance for short haul travel extend it into the early Chinese new year holiday with local hotel reservations, increasing by more than 20% year over year.
We have further augmented our product offerings.
Boutique accommodation planting hiking and other high quality and innovative travel experiences to meet customers evolving needs.
Meanwhile, we are also joined by more business partners to provide value added services.
Also attached to it.
More than 7000 high end hotels and is contributing over 40% off reservation to these participating partners.
The shortened travel radius gifts right put it demand for lost vacations and weekend tours.
They came more short distance travels and tank curricula and persistent weekend getaways.
I've become colorless it would happen.
Even with long haul travel a strong comeback in months when travel Curt one more relaxed demand for ships Tabori remained high.
We expect to see a high recovery potential.
Yes.
So in the short haul travels.
The effective pandemic potential.
Chip I'll call group has been well prepared.
He is well positioned to capture these opportunities to fuel.
Gross.
Hum.
Okay platform during the past few quarters, we have been accelerating our efforts to construct the contest thoughtful by following a three step strategy.
First we further enriched mountaintops content from Chipping chips.
By both professional creators and users.
The number of Kols increased by over 25% sequentially in the fourth quarter.
Regular users. We're also encouraged to start sharing content on our platform.
Daily average user generated content.
From these new creators grew by over 80% sequentially.
We are delighted to see highly user engagement.
The number of average daily interactive users all of our content channels more than doubled year over year in the fourth quarter average viewing duration as also be significantly increased.
Third our content platform is highly synergetic with our core business supported by our strong supply chain.
We're pleased to see the content conversion rate has improved steadily and has doubled its previous year level in February content platform also serves as a one stop marketing hub.
Yeah isn't as partners can't showcased their product and engage with users through direct interactions.
So far more than 3000 partners had horseshit overturn fellowship lives change Ctrip bashful.
All these efforts and achievements made us a very effective and therefore attractive marketing hub for advertising partners.
In Q4, I like elastic.
Tyson revenue increased over 20% compared to pre Covid 1919 level.
Third use it and that's it.
In addition to product innovation and content development. We are also dedicated to strengthening our value proposition to users, especially to our global loyal customers.
We upgraded our ctrip her loyalty program last year, Amy to enrich benefit offerings and extend our user coverage.
Users are able to redeem their membership points for not only travel related products.
So rewards across a variety of options.
Meanwhile, we also deepened our partnership with.
They finished partners, including hotels.
Like airports through our connected the membership program.
Which allows members to enjoy privileges from both sides.
We are glad to see the number of total ctrip loyalty.
Members increased by almost 20% year over year and continue to do what.
We high level members growing at double digits.
Well over Ctrip members can also enjoy traditional benefit from accommodation reservation.
Our trip plus program in which about 240000 hotels has signed up to offer extra discounts and value added services.
Fourth international B centers.
Over the previous quarters, our international Brent happy accelerating the integration of technology and supply chain.
Strong synergy allows us to further improve brand awareness in overseas market.
In Europe market.
Air ticket bookings have enjoyed sequential improvements in the fourth quarter. Despite the impact from all the current developments.
The recovery has further speed it up.
After many European countries decided to relax cover restrictions.
Air ticket bookings.
Overseas branches increased over 200% year over year in the first two months of 2022 .
Grew faster.
European markets.
In Asia market, we're working closely with local suppliers to address the increasing customer need for it.
Vacation.
In 2020 one.
Sick of hotel bookings.
She's market grew over 30% compare to pre Covid 1919 level and ashish around three digit growth in Hong Kong, Singapore and Korea market.
Meanwhile, our activity offerings in the overseas markets I see a continuous improvement.
2021 with total amount increased to five three times year over year and covering about 2000 destinations.
The extensive product offerings inspire more travelers to explore unique local experiences.
In 2021 reservations for global investigation activities on our platform grew by 30%.
When compare to the pre COVID-19 level. We have also been continuously upgrading our backend assistance and technology capabilities to drive efficiency across business lines and international markets and to overcome the challenges.
For the searching customer request due to pandemic using our upgraded the system.
Chatbot and our overseas call centers can now handle on it.
80% of our total well cost.
Providing a reliable and efficient customer set it has always been our mission and the driving force behind our business in 2021 checked all comps customers satisfaction rate with 90%.
Next I would like to talk about corporate responsibility.
Tourism is among the industry hit the hardest by the COVID-19 crisis two years since the onset of the pandemic the travel industry performance.
Yet to recover to pre pandemic levels.
However over the past three years, except I'll call group has actively stood out it made significant efforts to support the travel ecosystem.
Weather the crisis and prepare for the resource at.
Global travel wafer.
We facilitated guaranteed cancellations.
Cover the losses for our customers.
Offered financial assistance as well as operational and marketing support to our travel industry partners.
As James mentioned, we have achieved several milestones on the week to pursue industry, leading ESG practices in 'twenty or 'twenty one.
In March we launched our five year rural revitalization plan with the pocket debuted 10 countryside the Ritchie.
For industry benchmark into Impower 100, more by 2025 each.
These country side to retreat will help boost the local economy.
Rocketing tourists to these areas.
And creating job opportunities.
In true checked all called group joined the UN global compact representing our commitment to create a more sustainable future for the travel industry and our society.
In October we were glad to receive you and award for gender inclusive workplace as a recognition of our continued efforts in improving gender equality and inclusion.
Recently, we rolled out a hybrid work model provided by successful experiment.
We hope to improve employee satisfaction and the work efficiency.
More importantly, when yearly established our ESG committee, Amy to incorporate sustainability practices into our future strategic making processes.
As we discussed every cloud has a silver lining.
Why the uncertainty around the pandemic development remains.
Normalization of global travel is right on track.
Led by our strategy of local focus and global vision.
Our business in domestic China market is steadily climbing up.
Our international friends, we would take the lead to prepare for the global travel we opened.
With that I will now turn the call over to Cindy.
Thanks, Jay and good morning, everyone for the first quarter of 2020 , one trip Com group reported net revenue of RMB, four 7 billion, representing a 6% decrease year over year, primarily due to new wave of pandemic outbreak in certain regions.
China for the full year of 2021 net revenue was RMB 28 billion, representing a 9% increase from 'twenty 'twenty, mainly driven by our business recovery in China domestic market.
Accommodation reservation revenue for the fourth quarter of 2021 was RMB, one 9 billion, representing a 14% decrease year over year recovering 265%. After 2019 level for the full year of 2021 accommodation reservation.
<unk> revenue was RMB 8.1 billion, representing a 14% increase from 'twenty 'twenty domestic hotel bookings have nearly fully recovered to 2019 level for the fourth quarter, mainly driven by the growth of short haul travel in the fourth quarter.
Bookings for the intra provincial space increased by over 30% compared to the same period in 2019 with local hotel bookings growing by over 50%.
The patient ticketing revenue for the fourth quarter of 2020 . One was RMB, one 5 billion, representing an 11% decrease year over year recovery, 244% of the 2019 level for the full year of 2021 transportation ticketing.
Revenue was RMB six 9 billion, representing a 3% decrease from 2020 domestic trust the tissue recovery momentum was disrupted by resurgence of Covid cases for the fourth quarter, while international Air business saw a sequential improvement.
Compared to the previous quarter, mainly contributed by the recovery in Europe .
Packaged tour revenue for the fourth quarter of 2021 was RMB 177 million, representing a 32% decrease year over year recovery to 22% after 2019 level for the full year of 2021 .
Packaged tour business was RMB, one 1 billion, representing an 11% decrease from 'twenty 'twenty corporate travel revenue for the first quarter of 2021 was RMB 367 million representing a 22.
<unk> increased year over year recovery to 19, 8% off the 2019 level for the full year of 'twenty or 'twenty, one corporate travel revenue was RMB, one 3 billion, representing a 54% increase from 2020. This sac.
Mint continues to gain momentum benefitted by the expansion of client pool and increase of cross selling to accommodation product.
Compared to the same period in 2019 accommodation bookings ctrip corporate travel maintained about triple digit growth for both Q4 and full year of 2021 .
Excluding share based compensation charges, our total adjusted operating expenses were flattish compared to the previous quarter and decreased by 33% compared to the same period in 2019. This reflects our effective cost control and if it.
<unk> operating management across business lines.
Adjusted product development expenses for the fourth quarter decreased by 5% from the previous quarter. It achieved a savings of 19% when compared the same period in 2019, as we continue to run lean and to maintain a stable headcount in the.
<unk>.
Adjusted sales and marketing expenses for the fourth quarter maintained stable from the previous quarter and decreased by 14, 9% compared with the same period in 2019.
Savings comes from our prudent spending protocol in response to the uncertainty brought about by the pandemic.
Adjusted G&A expenses for the first quarter maintained stable from the previous quarter.
So savings of 22% when compared to the same period in 2019.
Adjusted EBITDA was RMB 54 million for the fourth quarter and RMB, one 3 billion for the full year of 2021 .
Adjusted EBITDA margin was 1% for the fourth quarter and 6% in 2021 .
Diluted loss per ordinary share and per a D. S was.
Were RMB, one two nights or U S dollar.
<unk> sense.
For the fourth quarter, excluding share based compensation charges and fair value changes of equity security investments and exchangeable senior notes no GAAP diluted earnings per ordinary share and per E. D. S were RMB 48 cents.
S dollar eight cents for the fourth quarter.
As of December 31st 2021, the balance of cash and cash equivalents restricted cash and short term investments held to maturity time deposits and financial products was RMB 63.9 billion or U S. Dollar 10 billion.
Now turning to the first quarter of 2022 we would like to share some color of our business.
Entering into 2022 we went there we are delighted to see that our domestic business sustained Bachelor of the industry performance in the first two months of it.
Domestic hotel bookings increased by over 20% year over year and was close to full recovery compared to 2019 domestic ear reservations also grew at high single digits year over year. However, another round of Covid outbreaks.
In March slowed down the recovery pace of domestic travel industry, especially in top tier cities.
Travel remains rather muted under current conditions.
Outside of China, the recovery momentum in Europe , and the U S remains robust our international brand showed further improvement during the first two months has.
Benefiting from the relaxation of travel restrictions and Betsy Rollouts the path to recovery is bright, but never street under the fast changing marketing conditions, we have adopted strict cost control to drive up operational efficiency across brands over there.
The past two years all of these efforts allow us to quickly accommodate industry changes and put us in a favorable position to grow faster after COVID-19 .
Going forward, we will remain highly adaptive to identify emerging market trends and to seize growth opportunities with that operator. Please open the line for questions.
Thank you if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press star two.
If you're on speakerphone, please pick up the handset to ask your question in the interest of time, we ask that you. Please limit to one question per person. If you would like to ask another question. Please press star one again to rejoin the queue. Your first question comes from Alex Yao from Jpmorgan. Please go ahead.
Thank you management for taking my question hometown.
The situation in China, a country penetration on China.
And the outbound travel recovery. Thank you.
Although we are optimistic about pent up demand for international travel, we do not expect changes international travel policy in near term.
No I still see waves of Covid outbreaks in multiple regions of the country.
Sure.
Travel industry under pressure.
On the other side.
Close to 90% of.
China's total population are fully vaccinated.
We have two shops over 45% of the total population as it received a booster shots.
With the current health care measures and importantly, lower mortality rate.
Finally, seeing the horn.
Hopefully.
Right.
According to Mr. Dunn, Guam so much.
Yeah.
Yes.
China.
It'll be a roadmap for China so.
Because of Covid.
And I hope your time.
Additional measures many food travel bubbles.
And experimental opening benches is selected the cities.
He is somewhat.
Foreign Minister, but you also mentioned doing two sessions about planned to launch the electronically international travel health certificates.
Cross border travel that is safe healthy and convenient.
Hong Kong is currently going through.
Oh great.
These estimates and it may take two to three months to bring the situation under control.
Meanwhile, we're still optimistic about the Hong Kong mainland borders reopening.
[laughter] so.
In the second half of 2020.
Although optimistic about.
Yeah.
Yes.
Yeah.
Okay.
Yeah.
Hmm.
Hello.
Move on to the next question.
Thank you. Your next question comes from Alex Poon from Morgan Stanley . Please go ahead.
Hi, Good morning management and thank you for taking my question. My question is a follow up.
Deep water policy with that.
Mind, how should we think about the revenue recovery in 2022 and 2023.
Compared to 2019, thank you very much.
Okay.
Quota for the domestic.
China market as we shared in the prepared remarks.
We are more cautious about Nielsen travel momentum. Meanwhile, we have recently seen the authority, making efforts to reduce potential disruption on the chrome cases.
Such as relaxing unnecessarily quarantine and lockdown measures and approving the use of Pfizer's corporate Q.
Oh, the vocals lots of friends with more countries decided to remove restrictions and live with Covid. The global travel market has set for telling me its way to recover.
While we cannot rule out the possibility that there would be other virus a virus variants or spots in cases, followed by revival of Lockdown.
We believe temporary Halloween.
It will not affect the overall recovery trajectory, especially in the long run.
So we think.
Pretty much the current situation is in line with our previous expectation that the world should be more normalized in for example, 2023 or 2024.
In the meantime, we will make efforts to improve our competitiveness.
Especially in the short haul.
This moves and customize the travel for the China domestic market and we will continue to increase our.
Our advertising revenues and for the international business.
Do ourselves to catch up the the pent up demand for it.
The international business.
We believe this will be the main drivers for our sustainable growth beyond.
Koby.
Thank you. Your next question comes from Ronald Keung from Goldman Sachs. Please go ahead.
Thank you. Thank you James.
Jane and Cindy.
Want to ask about the domestic competitive landscape that are I think we have been focusing on regional travel made by travel and penetrate into lower tier cities. So how is the recent development and could you also share your performance in high star hotels versus low end.
Most of our hotels.
Sure.
Thanks to the regulatory.
And in.
The environment, we are benefited from a healthy and more healthy and irrational competition within the domestic market.
He is focusing on its strengths.
So we look at the high end hotel we.
Happy are helping our partners.
To upsell a product that is a helpful. In this very challenging environment.
For example, a wide a hotel is being sold we also help our partners to sell.
Our restaurants are.
And the office bar product et cetera, So what our guests are staying with the high end of hotel a they have a good experience not only enjoyed their wounds, but also a total package and based on our visibility of the hotels that participate in these kind of.
In my room.
Our sales have been benefited from these promotions and to an extent we can all we help them to alleviate the challenge by up selling these products for them.
In corporate travel again, the environment is challenging but yet our gross is a.
Very sizable so we're also helping our business partners to get the business traveler.
Travelers.
To an extent there is still a solid demand in the environment. That's permits and are in the lower tier cities our penetration is excessive.
We have see intra province, and the local hotel gross to be significant as we stated.
As stated in the previous remarks the intra.
Province, and local scale grows represents about 30% and 50% year over year growth respectively. So we were continuous oh with our efforts in penetrating into our domestic market, while preparing for the outbound travel for it.
So recovery when time is ready.
Thank you.
Thank you. Your next question comes from Thomas Chong from Jefferies. Please go ahead.
Hi, Good morning, Thanks management for taking up my questions given the uncertainties in the macro environment, how should we think about the cost trend in 2020.
Thank you.
Thank you Thomas.
So.
Next to our largely flexible cost and expense structure as well as the efficient operating management.
During the past few quarters, a pandemic, we have streamlined our operating operations across business lines.
Nation to certain adjustments related to COVID-19 .
In addition, our improvement on content to cross selling and technology.
The less than our overall marketing efficiency.
Going forward, we continue to expect to them to have.
Have a very disciplined and flexible cost structure.
For the year 2022.
Especially for the our mature comparatively more mature the domestic market, we will continue to strengthening our cost control and expect to see no increase or even decrease.
In our in the total head count to serve the domestic market.
In the overseas market.
We may slightly increase our total investment to capture the pent up demand, depending on the growth momentum and business recovery in that market.
For the sales and marketing expenses, which are largely discretional and we will it will be adjusted according to the business recoveries. For example, currently based.
Based on the current situation for the domestic market.
We almost are minimized our total spending on the sales marketing for the domestic market.
Uh huh.
But a same for same compare with the head count we made a slightly increase our investment to capture the cats to capture the pent up demand for the overseas total in that Oh, let these international markets.
But overall and especially for the 'twenty to 'twenty two U.
U S back to a very disciplined total cost for our operations.
Thank you.
Your next question comes from James Lee from Mizuho. Please go ahead.
Great. Thanks for taking my questions if I can squeeze in two here quickly.
New hyper board plan to do.
We get a sense of how much of your employee base.
That's just the opposite.
Implication to your cost structure here and secondly, you know anything you've learned from the reason concession National Congress, a few weeks ago that could provide a positive lift.
Born free long term in <unk>.
Terms of government invest in technology for tourism or any potential physical support for the hospitality that's great. Thank you.
Sure. Thanks, James James to ask him to answer the first question and I will take the second one.
Yes.
We're glad to be the first of the Internet company.
Mainland China.
Comprehensive.
No.
Hi, everyone.
Got it.
Wow.
The huge potential and advantages.
How does it work.
And rolled out.
Okay.
It's small.
This is my managers will decide.
Basketball.
Yeah.
The most.
Well, that's the option to FIFO.
[laughter].
Saturday.
The performance evaluation methodology.
[laughter].
The new work model will also be implemented.
Office.
[noise] policy as a result of a series of expense.
Over the years.
That's right.
Job satisfaction.
Increase without compromising work efficiency.
It also helps to lower labor turnover.
The 50%.
Promoting.
How does it work.
Yes.
Okay.
And then <unk>.
And it also has the potential to reduce traffic congestion.
Hi housing prices and it contributes to female.
Okay.
And the families.
With such positive.
In fact, all the time.
And then finally, we.
Oh.
Okay.
Chinese companies in the future.
Thank you James.
Thank you James as we said took dotcom takes a tremendous social responsibility are why we are facing lots of challenges. During this special time, we have established many policies that is very friendly and supportive.
For our small and medium sized partners.
For example, we established a 1 billion partnership fund during a very difficult time to help our partners with their cash flow. We also established a 10 billion loan with the support from the major banks partners and support the small and medium size a partner.
And thirdly, we also try to Butte countryside results and helping our area in a remote area by bringing affluent customers from the area that is have economic development to the ear.
Or is that something that's developed so that we can create job opportunities.
Remote area and helping the local workers with their salary with the support for their families.
Continuously we will try to fit in the ecosystem not only by giving the donation of money into the ecosystem, but also create jobs, which is sustainable to help these area with their sustainability and four they'll come of prosperity and.
Our efforts will be enhanced throughout the years.
Q.
Your next question comes from Brian Gong from Citi. Please go ahead.
Yeah, Good morning, James Jane Cindy and Michelle So my question is.
We have made quite a decent progress.
We're coming to the platform.
Some more updates on our <unk>.
Content strategy, what is our monetization plan or short term and long term.
Cool.
Sure the country.
Our strategy is very important for us and we have seen very positive progress in this area are first of all our kols have increased by 25% sequentially. In Q4, secondly, the UGC are by the new craters also increase.
The by more than 80% compared to Q3, and thirdly, an almost 30% of our app unique visitors tried to view our content channels and firstly, our daily interactions by our users doubled year over year and lastly.
We have seen that the conversion rate from our content to transaction is extremely high which is the highest in the industry. So content. The strategy works very well and we tried to provide a one stop shopping platform not only on the fulfillment.
On the transaction, but also from the get go why our customers are researching tied to decide where to go they can come to our sites directly and find their inspiration. So we will continuously invest in our content strategy.
Thank you.
Your next question comes from Tien Ho from T. H capital. Please go ahead.
Yeah, Good morning management.
Just the one question.
As global markets. The opens so what will be a ctrip telecoms come packaged with vantage to gain more market share in overseas market.
Not this year, but in the next several years. That's the question. Thank you.
Sure.
You look at our portfolio, we have four parts are there.
First of all he is Chinese people travel within China, which we discussed already the second away as Chinese people travel abroad, which we believe are kept outcome is in the very good position once the border open.
The third way is to attract our.
Customers around the world into China, which is to develop the inbound business, we're very glad that Oh Oh.
Nation have adopted the 14th.
Idea plan and put the E attracting the inbound customer as one of the key strategy going forward and we will support our government in preparation to.
To attract more customers abroad into China in the last four years falling to flooring, which is to support our customers from one country to another and if we look at our global operation are the.
Travel in the area that is already opened up the growth is very strong we have seen three digits growth are in Europe are in many other countries. So we're very much a well work very hard with our local partners to make sure.
Our service Oh, Wow technology and also our product.
We'll be ready to address the increased demand in the global places. Thank you.
Thank you that does conclude our question and answer session. At this time I'll now hand, it back to Michelle Qi for closing remarks.
Thank you. Thank you everyone for joining US today, you can find the transcript and the webcast of today's call on Investor. So could still come we look forward to speaking with you on our first quarter of 2022 earnings call. Thank you and have a good day. Thank you very much.
That does conclude our conference for today. Thank you so much for participating you may now disconnect.
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Thank you all for standing by and welcome to the trip Com Group 2021 or Q4 earnings conference call. All participants are in a listen only mode there'll be a presentation followed by a question answer session. If you would wish to ask a question you will need to press the star key fully by the number one on your telephone keep.
Pat.
I'd now like to hand, the conference over to MS. Michelle Qi IR director. Please go ahead.
Thank you good morning, and welcome to trip Com group's fourth quarter and full year of 2021 earnings conference call.
Joining me today on the call are Mr. James Liang Executive Chairman of the Board Ms. Jane Sun, Chief Executive Officer, and MS. Cynthia Wong Chief Financial Officer.
During this call we will discuss our future outlook and performance, which are forward looking statements made under the safe Harbor provision of the U S. Private Securities Litigation Reform Act of a 1995.
Forward looking statements involve inherent risks and uncertainties.
As such our results may be materially different from the views expressed today.
Sure.
Uncertainties are outlined in trip don't come group's public filings with the Securities and Exchange Commission.
Trip Com group does not undertake any obligation to update any forward looking statements, except as required under applicable law, James Jane and Cindy will share in all strategy and business updates.
Raising highlights and financial performance for the fourth quarter of 2021 as well as outlook for the first quarter of 2022.
After the prepared remarks, we will have a Q&A session.
Was that our turn the call over to James James Please.
Yeah.
Thank you Michelle Thank you everyone for joining us on the call today.
Looking back 2021.
It was a year full of change challenges and opportunities the resurgence of cases, the emergence of new virus variants and a tremendous lockdowns set a bumpy path will global travel industry recovery. It also paved the way for sustainable development.
Twists and turns of the pandemic we have.
The opportunity to further diversify our products.
Our service quality and upgrade our technology.
Yeah, the China domestic market.
To maintain our competitive edge in the long distance travel market, while also breathing new strengths to short haul travel.
Our strong performance reflected how much that our core competency.
I've been further bolstered.
We are able to unleash the growth potential as long haul travel recovers.
Meanwhile.
We are encouraged to see that both user's thickness.
User engagement on <unk> com.
Channel.
Route.
In Q4.
The number of data interactive users content channel has more than doubled.
Over here.
To increase the user interaction insights Sparks, a flywheel effect, which will continue to drive up our content conversion rate.
In February .
Conversion rate has doubled when compared to the same period 2021.
Without quality user base and extensive marketing resource.
The content platform will provide long lasting value for our business partners.
Why only crowd development remains uncertain.
Many countries have already started to roll back travel restrictions.
All of our key brands continued to make progress on the path to recovery.
He further improvements.
Some months.
In the first two months of 2022.
Reservations now overseas brands increased by over 200% year over year.
Bookings in Europe has achieved faster growth.
The Asian markets, we are encouraged to see many countries announced plans to relax.
Travel policies.
Exploit such opportunities that further enhance our product competitiveness.
Especially for vacations and weekend tourists.
So in fact gave a localize the campaigns that are capped.
Our brand top of the mind.
Continuing to take shares.
Mortgage.
Finally.
I would like to.
Our progress ESG development.
We made sustained efforts and promote.
Rural revitalization initiators.
With H trip Com group Com.
Retreats already opened by the end of 2021.
Secondly, we strive to build an inclusive workplace.
<unk> has launched a hybrid working model starting March giving qualified employees an option too.
Work remotely all certain days in a week.
We believe the promotion of the kinds of work it is a multi Hawaii, whether company employees and society.
It helps improve the employee satisfaction without compromising efficiency.
It also helps the environmental protection.
Contributes to families supports female career development and creates a positive impact on society and the economy.
Yeah.
We also newly established.
Oh, Yes, she committee to oversee and integrate sustainability practices into the daily business operations.
The relatively recovery will not always be easy.
So we are prepared to embrace another challenging and exciting year.
Over the past two years, although the world has taken some detours on its path to recovery.
Upland.
Eventually lead us to building stronger resilience.
Got it if our local focus global vision strategy.
Look forward to helping people from every corner of the world to take on that perfect chips very soon.
With that.
Now I'll turn the call over to Jim.
The operational highlights.
Thank you James Good morning, everyone. Let me start with an overview of the performance.
I would like to start with a quick overview of Q4 and the full year of 2021 .
The industry experienced a cold at the resurgence and weaker seasonality in Q4 chips I'll call group delivered a solid performance.
In the fourth quarter. Our total net revenues remained largely stable year over year, China domestic market with still a lot of pressure due to a new wave of infections and the rapid development of Omnicom cases, Nevertheless, we're able to maintain.
Our competitive edge and outpacing the industry performance across business lines in.
Q4 domestic hotel bookings on Ctrip platform was higher than the pre COVID-19 1919 level exceeding the industry growth by 20% to 25%.
I went domestic air bookings also recovered much faster than the market performance.
For the full year of 2020, what our total net revenues increased by 9% year over year.
Mainly driven by the recovery of our domestic business.
Our core OTC brands achieved a T N D of over RMB 500 billion.
U S D 78 billion.
Close to a 30% year over year.
Thanks to our effective cost control and efficiency improvements, we achieved a positive adjusted EBITDA margin of 6% for the four year of 20th century, what century 21 with an acceleration year for us.
The domestic market, we developed a newsprint.
Short haul travel and speed it up.
The construction of content platform.
Customers at the center of our business.
Also upgraded our loyalty program.
Extend it reward offerings and to benefit more loyal customers.
While our international brands continue to gain market share.
Overseas market with higher efficiency.
Here I would like to highlight.
She's been in four areas.
First short haul travel.
Two years into a pandemic short haul travel remains popular and continue to be a key contributor to our domestic recovery during the past year.
In Q4.
Aimed to prevent Shaw hotel bookings grew over 30% compared to pre Covid 1919 level with local hotel bookings increased by over 50%.
Such strong performance for short haul travel extend it into the early Chinese new year holiday with local hotel reservations, increasing by more than 20% year over year.
We have further augmented our product offerings.
Quote boutique accommodation.
King hiking and other high quality and innovative travel experiences to meet customers evolving needs.
Meanwhile, we are also joined by more business partners to provide value added services.
All of our packages now cover more than 7000 high end hotels and is contributing over 40% of reservation to these participating partners.
The shortened travel radius gifts right to their demand.
Loss vacations and weekend tours.
Thank him more short distance travels and tank curricula and a consistent weekend getaways has become colorless inhabit.
Either way long haul toggle a strong comeback in months when travel Curt one more relaxed.
And for Sharps Tabori remained high.
We expect to see high recovery potential.
Long haul and short haul travels.
The effective pandemic painful.
Chip I'll call group has been well prepared and is well positioned to capture this opportunity.
Ill.
Gross.
Okay platform during the past few quarters, we have been accelerating our efforts to construct the content thoughtful by following our three step strategy.
First we further enriched mount of the content contributed by both professional creators and users.
And a number of kols increased by over 25% sequentially in the fourth quarter.
Regular users. We're also encouraged to start sharing content on our platform.
Daily average user generated content.
From these new creators grow by over 80% sequentially.
We are delighted to see highly user engagement with the number of average daily interactive users all of our content channels more than doubled year over year in the fourth quarter average viewing duration as also be significantly.
Increased.
Third our content platform is highly synergetic with our core business supported by our strong supply chain.
We're pleased to see the content conversion rate.
It's improved steadily and has doubled its previous year level in February content platform also serves as a one stop marketing hub.
Where they finished.
Others can't showcased their product and engage with their users through direct interactions.
So far more than 3000 partners have hosted over chair fellowships lives change Ctrip bashful.
All these efforts and achievements made us a very effective and therefore attract test marketing hub for advertising partners.
In Q4, I like elastic.
Tyson revenue increased over 20% compared to pre Covid 1919 level.
Third use it and that's it.
In addition to product innovation and content development. We are also dedicated to strengthening our value proposition to users, especially to our global loyal customers.
Upgraded our ctrip her loyalty program last year, aiming to enrich benefit offerings and extend our user coverage.
Users are able to redeem their membership points for not only travel related products, but also rewards.
Across a variety of options.
Meanwhile, we also deepened our punish it when they finished partners, including hotels airlines airports through our connected membership program.
Which allows members to enjoy privileges from both sides.
We are glad to see the number of total ctrip loyalty.
<unk> increased by almost 20% year over year in 'twenty two what.
High level members growing at double digits.
Well over Ctrip members can also enjoy traditional benefit from accommodation reservation and our trip plus program.
About 240000 hotels has signed up to offer extra discounts and value added services.
Bush International B centers.
Over the previous quarters, our international brands have been accelerating the integration of technology and supply chain.
Strong synergy allows us to further improve brand awareness in overseas market.
In Europe market Air.
Air ticket bookings.
<unk> enjoyed sequential improvements in the fourth quarter. Despite the impact from all these product development.
The recovery has further speed it up.
After many European countries decided to relax travel restrictions.
Air ticket bookings.
The overseas branches increased over 200% year over year in the first two months of 2022 and grew faster than.
European markets.
In Asia market, we're working closely with local suppliers to address the increasing customer need for it.
Vacation.
In 2020 , one domestic hotel bookings in overseas market grew over 30% compare to pre COVID-19 level and achieved around three digit growth in Hong Kong, Singapore, and the Korean market.
Meanwhile, our activity offerings in the overseas markets are seeing continuous improvement in 2020 , one with total amount increased by three times year over year and covering about Michelle since destination.
The extensive product offerings inspire more travelers to explore unique local experiences.
In 2021 reservations for global in destination activities on our platform grew by 30%.
When compare to the pre COVID-19 level. We have also been continuously upgrading our backend assistance and technology capabilities to drive efficiency across business lines in international markets and to overcome the challenges.
For the searching customer request due to pandemic.
Using our upgraded the system, but AI chatbot.
Our overseas call centers can now handle nearly 80% of our total well cost.
Providing a reliable and efficient customer service has always been our mission and the driving force behind our business in 2021 chip all comps customers satisfaction rate with 96.
Next I would like to talk about corporate responsibility.
Tourism is among the industry hit the hardest by the COVID-19 crisis.
Three years since the onset of the pandemic the travel industry performance is yet to recover to pre pandemic levels.
However over the past two years trip Com group has actively stood out it made significant efforts to support the travel ecosystem to weather the crisis and prepare for the resource at.
Global travel wafer.
We facilitated guaranteed cancellations and <unk>.
Cover the losses for our customers.
Offered financial assistance as well as operational and marketing support to our travel industry partners.
As James mentioned, we have achieved several milestones on the way to pursue industry, leading ESG practices in 2021 .
In March we launched our five year rural revitalization plan, which the pockets to be able to turn countryside direction.
For industry benchmark into Impower 100, more by 2025 each.
East countryside retreat will help boost the loan.
<unk> economy.
Tracking tourists.
These areas.
And creating job opportunities.
In true Chatbot called group joined the UN Global compact.
Presenting our commitment to create a more sustainable future for the travel industry and our society.
In October we were glad to receive an award for gender inclusive workplace.
It's a recognition of our continued efforts in improving gender equality and inclusion.
Recently, we rolled out a hybrid work model provided by successful experiment.
We hope to improve employee satisfaction and the work efficiency.
More importantly, when yearly established our ESG Committee.
To incorporate sustainability practices into our future strategic making processes.
As we discussed every cloud has a silver lining.
Or certainty around the pandemic development remains.
Normalization of global travel is right on track.
Led by our strategy of local focus and global vision.
Our business in domestic China market is steadily climbing up.
Our international friends, we would take the lead to prepare for the global travel we opened.
With that I will now turn the call over to Cindy.
Thanks, Jay and good morning, everyone for the first quarter of 2020 , one chip dotcom growth reported net revenue of RMB, four 7 billion, representing a 6% decrease year over year, primarily due to new wave of pandemic outbreak in certain regions.
China for the full year of 2021 net revenue was RMB 28 billion, representing a 9% increase from 'twenty 'twenty, mainly driven by our business recovery in China domestic market.
Accommodation reservation revenue for the fourth quarter of 2021 was RMB, one 9 billion, representing a 14% decrease year over year recovering 265%. After 2019 level for the full year of 2021 accommodation reservation.
Revenue was RMB 8.1 billion, representing a 14% increase from 'twenty 'twenty domestic hotel bookings have nearly fully recovered to 2019 level for the fourth quarter, mainly driven by the growth of short haul travel in the fourth quarter Hotel.
Bookings for the intra provincial state increased by over 30% compared to the same period in 2019 with local hotel bookings growing by over 50% transportation ticketing revenue for the fourth quarter of 'twenty or 'twenty, one was RMB, one 5 billion.
Representing an 11% decrease year over year recovery, 244% off the 2019 level for the full year of 2021 transportation ticketing revenue was RMB six 9 billion, representing a 3% decrease from <unk>.
20 domestic trusts the tissue recovery momentum was disrupted by a resurgence of Covid cases for the first quarter, while international Air business saw sequential improvements compared to the previous quarter.
<unk> contributed by the recovery in Europe .
Packaged tour revenue for the fourth quarter of 2021 was RMB 177 million, representing a 32% decrease year over year recovery to 22% after 2019 level for the full year of 2021 .
Packaged tour business was RMB, one 1 billion, representing an 11% decrease from 'twenty to 'twenty two.
Corporate travel revenue for the fourth quarter of 2021 was RMB 367 million, representing a 20% increase year over year recovery to 19, 8%. After 2019 level for the full year of 'twenty or 'twenty one corporate.
Travel revenue was RMB, one 3 billion, representing a 54% increase from 'twenty 'twenty. This segment continued to gain momentum and expand it by the expansion of client pool and increase of cross selling to accommodation product.
Compared to the same period in 2019 accommodation bookings of Ctrip corporate travel maintained about triple digit growth for both Q4 and full year of 2021 .
Excluding share based compensation charges, our total adjusted operating expenses was flattish compared to the previous quarter and decreased by 33% compared to the same period in 2019. This reflects our effective cost control and if it.
<unk> operating management across business lines.
Adjusted product development expenses for the fourth quarter decreased by 5% from the previous quarter. It achieved a savings of 19% when compared the same period in 2019, as we continue to run lean and maintain a stable headcount in the.
<unk>.
Adjusted sales and marketing expenses for the fourth quarter maintained stable from the previous quarter and decreased by 14, 9% compared with the same period in 2019.
Savings comes from our prudent spending protocol in response to the uncertainty brought about by the pandemic.
Adjusted G&A expenses for the first quarter maintained stable from the previous quarter.
So savings of 22% when compared to the same period in 2019.
Adjusted EBITDA was RMB $54 million for the fourth quarter and RMB, one 3 billion for the full year of 2021 .
Adjusted EBITDA margin was 1% for the fourth quarter and 6% in 2020 one.
Diluted loss per ordinary share and per a D. S was.
Were RMB, one two nights or U S dollar.
<unk> sense.
For the fourth quarter, excluding share based compensation charges and fair value changes of equity security investments and exchangeable senior notes no GAAP diluted earnings per ordinary share and per E. D. S were RMB 48 cents.
S dollar eight cents for the fourth quarter.
As of December 31st 2021, the balance of cash and cash equivalents restricted cash and short term investments held to maturity time deposits and financial products was RMB 63.9 billion all U S dollar 10 billion.
Now turning to the first quarter of 2022 we would like to share some color of our business.
Entering into 2022 we went there we are delighted to see that our domestic business the thing better than industry performance in the first two months of this.
Domestic hotel bookings increased by over 20% year over year and was close to full recovery compared to 2019.
Mastic ear reservations also grew at high single digits year over year. However, another round of Covid outbreaks in March slowed down the recovery pace of domestic travel industry, especially in top tier cities outbound travel remains rather muted.
Their current conditions.
So out of China, the recovery momentum in Europe , and the U S remains robust our international brand showed further improvement during the first two months.
Benefiting from the relaxation of travel restrictions and Baskin Rollouts the path to recovery is bright, but never strict under the fast changing marketing conditions, we have adopted strict cost control to drive up operational efficiency across brands over.
The past two years all of these efforts allow us to quickly accommodate industry changes and put us in a favorable position to grow faster after COVID-19 .
Forward, we will remain highly adaptive.
To identify emerging market trends and to seize growth opportunities with that operator. Please open the line for questions.
Thank you if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press star two if you're on speakerphone. Please pick up the handset to ask your question in the interest of time, we ask that you. Please limit to one question per person if you would like to ask another question.
Jim Please press star one again to rejoin the queue. Your first question comes from Alex Yao from Jpmorgan. Please go ahead.
Thank you management for taking my question Hum.
Stomach situation in China, a country club.
China's.
Border reopening and the outbound travel recovery. Thank you.
Although we are optimistic about pent up demand for international travel, we do not expect changes international travel policy in near term.
I still see waves of Covid outbreaks in multiple regions in the country.
Which continues to post strong.
I believe it.
Crushing.
On the other side.
Close to 90% of the China's total population are fully vaccinated.
We have two shops over 45% of the total population as it received a booster shots.
We have a current health care and measured and importantly, lower mortality rate.
We are finally seeing the horn.
Hopefully well manageable.
According to Mr. Wang.
Yes.
China.
<unk>.
It will be a roadmap of Chinese.
Because of Covid.
Uhm.
Hopefully with time.
She'll measures many food travel bubbles.
They experimented opening benches in selected cities.
<unk> is somewhat flawed.
Foreign Minister Bang you also mentioned doing two sessions about plans to launch.
Turning to international travel health certificates.
So, let's say cross border travel that is safe healthy and convenient.
Hong Kong currently going.
Going through outbreak.
These estimates and it may take two to three months to bring the situation under control.
While we are still optimistic about the Hong Kong mainland borders reopening.
Yeah.
So.
Second half of 2020.
Oh no.
Mystic about.
Yeah.
Yes.
Thanks Chase.
Hum.
Hello.
I'll move on to the next question.
Thank you. Your next question comes from Alex Poon from Morgan Stanley . Please go ahead.
Hi, Good morning management. Thank you for taking my question. My question is a follow up on them.
The auto policy with that.
Mind, how should we think about the revenue recovery in 2022 and 2023.
Compared to 2019, thank you very much.
Okay.
Quota for the domestic China.
China market as we shared in the prepared remarks.
We are more cautious about Nielsen travel momentum. Meanwhile, we have recently seen the authority, making efforts to reduce potential disruption on the chrome cases.
Such as relaxing unnecessarily quarantine and lockdown measures and approving the use of Pfizer's Covid Q.
Oh, the brokers like the front with more countries decided to remove restrictions and live with Covid. The global travel market has sex good telling me its way to recover.
While we cannot rule out the possibility that there will be other virus a virus variants or spikes in cases, followed by revival of Lockdown.
We believe temporary Halloween.
Will not affect the overall recovery trajectory, especially in the long run.
So we think.
Pretty much the current situation is in line with our previous expectation that the world should be more normalized AR in for example, 'twenty 'twenty three or 'twenty 'twenty four and in the meantime, we will make efforts to improve our competitiveness.
Especially in the short haul.
Business and customize the travel for the China domestic market and we will continue to increase our advertising revenues and for the international business, We will do ourselves to catch up the the pent up demand.
For the international business.
We believe this will be the main drivers for our sustainable growth beyond the Kobe.
Thank you. Your next question comes from Ronald Keung from Goldman Sachs. Please go ahead.
Thank you. Thank you James.
Jane and Cindy.
Want to ask about the domestic competitive landscape that are I think we have been focusing on regional travel travel and.
Penetrate into lower tier cities. So how is the recent development and could you also share your performance in high Star hotels versus low end low star hotels.
Sure.
Thanks to the Ah Ah regulatory Oh.
Environment, we are benefited from a healthy a more healthy and irrational competition within the domestic market everybody is focusing on its strengths.
So we look at the high end hotel are we happy are helping our partners try to upsell a product that is a helpful. In this very challenging environment. For example, Ah why the hotel is being sold we also help out.
Our hot and there's two sale.
Our restaurants are in autos bar product et cetera, So what our guests are staying with the high end of hotel. They have a good experience not only enjoyed their wounds, but also a total package and based on our visibility are the hotels that.
In these kind of MRM.
Packages, our sales have been benefited from these promotions and to an extent, we can we help them to alleviate the challenge by up selling these products for them.
In corporate travel again, the environment is challenging but yet our gross is I'm.
Very sizable so we're also helping our business partners to get the business traveler.
Travel is a trend.
To an extent there is still a solid demand in the environment. That's permits and are in the lower tier cities our penetration is excessive.
We have see a intra province, and the local hotel gross to be significant as we stated.
As stated in the previous remarks the intra.
Province, and local scale growth represents about 30% and 50% year over year growth respectively. So we were continuous oh with our efforts in penetrating into our domestic market, while preparing for the outbound travel for it.
So recovery.
Time is ready.
Thank you.
Thank you. Your next question comes from Thomas Chong from Jefferies. Please go ahead.
Hi, Good morning, Thanks management for picking up my questions given the uncertainties in the macro environment, how should we think about the cost trend.
Thank you.
Thank you Thomas.
So.
Next to our largely flexible cost expense expense structure as well as the efficient operating management.
During the past few quarters, a pandemic, we have streamlined our operating operations across business lines.
Listen to certain adjustments related to COVID-19 .
In addition, our improvement on content across semi and technology.
The lift in our.
Overall marketing efficiency going forward, we continue to expect to them to.
To have a very disciplined and flexible cost structure.
For the year 2022.
Especially for the our mature more comparatively more mature domestic market we.
We will continue to strengthening our cost control and expect to see no increase or even decrease.
In the total head count to serve the domestic market.
In the overseas market.
We may slightly increase our total investment to capture the pent up demand, depending on the growth momentum and business recovery in that market.
For the sales and marketing expenses, which are largely discretional and we will it will be adjusted according to the business recoveries or example, currently based.
Based on the current situation for the domestic market.
We almost are minimized our total spending on the sales and marketing for the domestic market.
Uh huh.
But a same for same compare with the head count we made a slightly increase our investment to capture the cost to capture the pent up demand for the overseas total in that spot overseas.
International markets.
But overall and especially for the 'twenty to 'twenty two you.
U S back to a very disciplined total cost will all operations.
Thank you.
Your next question comes from James Lee from Mizuho. Please go ahead.
Great. Thanks for taking my questions if I can squeeze in two here quickly.
New hybrid work plan.
We get a sense of how much of your employee base.
That's just the opposite.
Implication to your cost structure here and secondly, you know anything you've learned from the reason concession Nashville Congress a few weeks ago that could provide a positive lift.
Just the long term.
Terms of government investing technology for tourism or any potential physical support for the hospitality that's great. Thank you.
Sure. Thanks, James James So I ask you to answer the first question and I will take the second one.
We are glad to be the first of the Internet company in mainland China.
Comprehensive partner working model.
Hi, everyone.
Okay.
In fact, the future.
Yeah.
With a huge potential and then advantages.
Other work.
And rolled out.
Panel.
Hello.
This is a lot of managers, who decide to pick up.
And basketball.
They offer the.
The most.
Well, that's the option to FIFO actually remotely.
[laughter].
Salaries calculation of performance evaluation methodology.
<unk>.
Yeah.
The new work model will also be implemented.
Global office.
Policy as a result of a series of extensions.
Over the years.
So glad to see.
The job satisfaction.
The increase without compromising work efficiency.
It also helps to lower our labor turnover.
Get to 50%.
Promoting.
Hi, Joe.
For the company.
I think point.
It also has the potential to reduce traffic congestion.
Hi housing prices and it contributes to female.
Career development and families.
With such a partner.
In fact, all society and economy.
Which one I hope I didn't work.
Can be adopted on more Chinese companies.
Sure.
Thank you James.
Thank you James S. A we said kicked alcon takes a tremendous social responsibility are why we are facing lots of challenges. During this special time, we have established many policies that is very friendly and supportive.
For our small and medium sized partners. For example, we established a 1 billion partnership fund during a very difficult time to help our partners with their cash flow. We also established a 10 billion alone with the support from the major banks partners.
And support to small and medium sized partners.
Thirdly, we also try to Butte countryside results and helping our area in a remote area by bringing ace willing to customers are from the area that is had economic development to the area that is less.
Developed so that we can create job opportunities.
D C remote area and helping the local workers with their salary with the support for their families.
So continuously we will try to fit in the ecosystem not only by giving the donation of money into the ecosystem, but also create jobs, which is sustainable to help these area with their sustainability.
Four they'll come of prosperity and our efforts will be enhanced throughout the years.
Thank you.
Your next question comes from Brian Gong from Citi. Please go ahead.
Yeah, Good morning, James Jane Cindy and Michelle So my question is.
We have made quite a decent progress.
We're coming to the platform.
Some more updates.
And the strategy what is our monetization plan.
Short term and long term.
Okay.
Sure. The content strategy is very important for us and we have seen very positive progress in this area are first of all our kols have increased by 25% sequentially. In Q4, secondly, the UGC are by the news.
Creators also increased by more than 80% compared to Q3, and thirdly, an almost 30% of our app unique visitors try to view our content channels and firstly I'll watch daily interactions by our users are doubled.
Year over year, and lastly, we have seen that the conversion rate from our content to transaction is extremely high which was the highest in the industry. So content strategy works very well and we tried to provide a one stop shopping platform.
Not only on the fulfillment on the transaction, but also from the get go why our customers are researching a tie to decide where to go they can come to our site directly I'm fine did their inspiration. So we will continuously invest in.
Our content strategy. Thank you.
Your next question comes from Tien Ho from T. H capital. Please go ahead.
Yeah, Good morning management.
Just the one question.
As global markets. The opens so what will be a ctrip or telecoms come packaged with vantage to gain more market share in overseas market.
Not this year, but in the next several years. That's the question. Thank you.
Sure.
You look at our portfolio, we have ballpark.
First of all he is Chinese people travel within China, which we discussed already the second away as Chinese people travel abroad, which we believe are kept outcome is in the very good position once the border open.
The third way is to attract our.
Customers around the world into China, which is to develop the inbound business. We are very glad that Oh Oh.
Nation have adopted the 14th.
IV a plan a and put the E attracting the inbound customer as one of the key strategy going forward and we will support our government in preparation to.
To attract more customers abroad into China in the last 40 years boring too boring, which is to support our customers from one country to another and if we look at our global operations are the key.
Travel are in the area that is already opened up the growth is very strong we have seen three digits growth.
In Europe .
Many other countries. So we're very much a well work very hard with our local partners to make sure our service Oh, Wow technology and also our product will be ready.
Yes, the increase the demand in the global places. Thank you.
Yeah.
Thank you that does conclude our question and answer session. At this time I'll now hand, it back to Michelle Qi for closing remarks.
Thank you. Thank you everyone for joining US today, you can find the transcript and the webcast of today's call on Investor. So could still come we'll look forward to speaking with you on our first quarter of 2022 earnings call. Thank you and have a good day. Thank you very much.
That does conclude our conference for today. Thank you so much for participating you may now disconnect.