Q1 2024 Trip.com Group Ltd Earnings Call
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Operator: Good day, and thank you for standing by. Welcome to the Trip.com Group 2024 Q1 Earnings Conference Call. At this time, all participants are in a listen-only mode.
Speaker Change: Good day, and thank you for standing by and welcome to the trip Com Group 2024, Q1 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need a press star one on your telephone you will then hear and automate.
Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star one on your telephone. You will then hear an automated message advising you that your hand is raised.
Operator: To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Mr. Michelle Qi, Head of Investor Relations. Please go ahead.
Speaker Change: Message advising you your hand is raised to withdraw your question. Please press star one again, please be advised that today's conference is being recorded I would now like to hand, the conference over to himself G head of Investor Relations. Please go ahead.
Michelle Qi: Thank you. Thank you, everyone. Good morning. Welcome to Trip.com's first quarter of 2024 earnings conference call. Joining me today on the call are Mr. Jianzhang Liang, Executive Chairman of the Board, Ms. Jianzhang, 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 provisions of the U.S. Private Security Litigation Reform Act of 1995, for forward-looking statements involving territories and uncertainties. As such, our results may be materially different from the views expressed today.
Speaker Change: Thank you. Thank you everyone. Good morning, welcome to Bill Com's first quarter of 'twenty 'twenty four 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. Cindy.
Speaker Change: One chief Financial Officer.
Speaker Change: On this call, we will discuss our future outlook and performance, which are forward looking statements made under the safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995.
Speaker Change: Forward looking statements involve inherent risks and uncertainties.
Speaker Change: As such our results may be materially different from the views expressed today.
Speaker Change: A number of potential risks and uncertainties are outlined in chip they'll come group's public filings with the Securities and Exchange Commission chip they'll come groups does not undertake any obligation to update any forward looking statements, except as required under applicable law.
Speaker Change: Jim.
Speaker Change: And Cindy will share in our strategy and business updates operating highlights and financial performance with first quarter of 2024 as well as the color for the second quarter of 2024.
Speaker Change: After the prepared remarks, we will have a Q&A session.
Michelle Qi: A number of potential risks and uncertainties are outlined in Trip.com 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. Jainz, Jian, and Cindy will share our strategy and business updates, operating highlights, and financial performance for the first quarter of 2024, as well as our outlook for the second quarter of 2024. After the prepared remarks, we will have a Q&A session. With that, I will turn the call over to James. James, please.
Speaker Change: With that I will turn the call over to Jim.
Jim: Yes. Please.
James: Thank you, Michelle, and thanks everyone for joining us on the call today. The Chinese travel market has experienced remarkable growth over the last year. 2024 continues to be a strong year for travel; positioned at the forefront of the thriving sector, Trip.com Group has achieved significant advancements across all business lines in this quarter. In 2024, outbound travel will continue to be a pivotal force propelling the Chinese travel market forward. With international flight capacity roughly doubling compared to last year and the visa-free policies further facilitating trips in the APEC region, Haobang Travel is becoming increasingly appealing and accessible. Currently, Haobang Hotel and air ticket bookings on our platform fully recovered to 2019 levels during the major holiday period, indicating a strong rebound in demand.
Jim: Thank you Michelle.
Jim: Thanks to everyone for joining us on the call today.
Jim: Chinese travel market has experienced a remarkable growth over the last year.
Speaker Change: In 2024 continues to be a strong year for travel.
Speaker Change: Positioned at the forefront of fifth.
Speaker Change: The main sector.
Speaker Change: I'll kind of group is achieved.
Speaker Change: Significant advancements across all business lines in this quarter.
Tony: Thanks, Tony for outbound travel continues to be a pivotal force accounting with the Chinese travel market forward.
Tony: With international flight capacity, roughly doubling compared to last year.
Tony: Three policies further facilitating trips and AAP.
Tony: Pac region.
Tony: Outbound travel is becoming increasingly appealing.
Tony: Festival.
Speaker Change: Emily Hotel and air ticket booking.
Speaker Change: Platform.
Speaker Change: We have a coverage.
Speaker Change: 19 levels during the major holiday periods.
Speaker Change: <unk> a strong rebound in demand.
James: In addition to outbound travel, the China domestic power market continued to exhibit strong performance in the first quarter, in response to the growing interest of Chinese travelers in exploring their homeland. We are also catering to the increasing travel demands of the Silver Generation.
Speaker Change: In addition to outbound travel.
Speaker Change: China domestic power market.
Speaker Change: Hey exhibited strong performance in the first quarter.
Speaker Change: In response to growing interest to the Chinese travelers and exploring their homeland.
Speaker Change: We are also catering to the increasing travel demands of silver regeneration.
James: This demographic is known for their love of Venetian travel and the cultural experiences, as well as their tendency to travel during off-peak seasons, presents a substantial growth opportunity within the domestic lens to address their unique travel preferences. We have already... introduced The Old Friends Club initiative, which is designed... to empower this cohort to fulfill their travel aspirations. This initiative also has the potential to bridge the gap between peak and off-peak seasons in China's travel market. On the international front, our global business is experiencing rapid expansion, particularly in the APAC region, with revenue growing at an impressive rate of around 80% year-over-year. Additionally, we have a witness.
Speaker Change: This demographic.
Are there levels.
Speaker Change: Vijay travel.
Speaker Change: Cultural experiences.
Speaker Change: Well as the attendant ctrip travel during off peak seasons represents a substantial growth opportunity within the domestic landscape.
Speaker Change: To address their unique travel preferences.
Speaker Change: We have already.
Speaker Change: Introduced.
Speaker Change: Old Friends Club initiative.
Speaker Change: As designed.
Speaker Change: To empower this cohort fulfill their travel aspirations.
Speaker Change: This initiative also has the potential to bridge the gap between peak and off peak seasons in China travel market.
On the international front, our global business is experiencing rapid expansion.
Speaker Change: Particularly in APAC region with revenue growing at an impressive rate of around 80% year over year.
Speaker Change: Additionally, we have witnessed.
James: Significant growth in inbound travel to China, with a remarkable increase of over 400% compared to last year, driven by the benefits of visa-free policies. In response to this flourishing trend, we initiated a program in April aimed at providing free city tours to international travelers with layovers exceeding eight hours at Shanghai Putong International Airport. This initiative aims to transform their brief stopovers into mini-vacations, thereby offering new avenues for international travelers to explore China.
Speaker Change: Significant growth in non travel to China.
Speaker Change: Remarkable increase of over 400% compared to last year, driven by the benefits of visa policies.
Speaker Change: In response to this flourishing trained reinitiate as a programming April aimed at providing free city tours, So international travelers layovers exceeding eight hours had Shanghai Pudong International Airport.
Speaker Change: Initiative aims to transform their brief stopovers.
Speaker Change: Too many vacations.
Speaker Change: Offering new avenues for international travelers to explore China.
Speaker Change: Yeah.
James: In conclusion, Travel remains a resilient and promising business. There are great opportunities and possibilities in 2024. As we journey forward, we remain committed to creating value for both customers and shareholders. And we are poised to navigate this evolving landscape and achieve new heights of success. With that, I will turn the call over to Jain for Operation Note Highlight. Thank you, James. Good morning, everyone.
Speaker Change: Being concluded.
Speaker Change: <unk> remains resilient and promising business.
Speaker Change: Great opportunities.
Speaker Change: Possibilities in 2024.
Speaker Change: As we journey forward.
Speaker Change: <unk> remains committed to creating value for both customers and shareholders.
Speaker Change: And we are poised.
Navigate this evolving landscape and to achieve new heights of success with.
Speaker Change: With that I will turn the call over to Jane for operational highlights.
Jain: As a quick overview, our net revenue in Q1 grew by 29% year-over-year. Our adjusted equity margin for this quarter was 33%. We're delighted to observe the sustainable growth in travel momentum this quarter as it occurs amidst a transition from pent-up demand to a more normalized demand environment. This shift indicates a maturing market condition, further contributing to our confidence in the sustainability of strong performance for the rest of 2024. Trip.com Group continues to identify opportunities across different market segments. First, for the Chinese domestic market. In Q1, the Chinese domestic market continued to demonstrate robust growth.
Jie Sun: Thank you James good morning, everyone.
Jie Sun: Quick overview, our net revenue in Q1 grew by <unk>, 9% year over year.
Adjusted EBITDA margin for this quarter was 33%.
Jie Sun: We're delighted to observe.
Jie Sun: Sustainable growth in travel momentum in this quarter.
Paris amidst the transition from a pent up demand to a more normalized demand environment.
Jie Sun: This shift in the pit.
Jie Sun: A maturing market condition further contributing to our confidence with sustainability of strong performance for the rest of 'twenty 'twenty four.
Speaker Change: Telkom group continues to identify opportunities across different market segments.
Jain: Our domestic hotel and air ticket bookings increased by 20 to 30% year over year. Notably, Chinese consumers are changing their spending habits, placing great emphasis on quality, experience, and emotional fulfillment. This evolving mindset is prompting travelers to pursue a personalized and high-quality travel experience tailored to their unique preferences, presenting a considerable advantage for the travel industry. Moreover, it is noteworthy that both government attention and social interest in the travel industry have reached unprecedented levels this year. Intensifying marketing efforts in many provinces effectively encourage travelers to explore diverse destinations, largely contributing to the enduring popularity of domestic travel. Second, Huabang Trouble.
Speaker Change: First for China domestic market.
Speaker Change: In Q1, the China domestic market continue to demonstrate robust growth.
Speaker Change: Domestic hotel and air ticket.
Speaker Change: Increased by 20% to 30% year over year.
Speaker Change: Chipotle Chinese consumers are changing their spending habits, placing.
Speaker Change: Placing greater emphasis on quality experience and emotional fulfillment.
It's evolving mindset is prompting colorless to pursue personal life and high quality public serious tailored to their unique preferences presenting a considerable advantage for travel industry.
Speaker Change: Moreover, it is noteworthy for both government that pension and social interest in the travel industry has reached unprecedented levels. This year.
Speaker Change: Intensified marketing efforts in many provinces actively encourage travelers to explore diverse destinations largely contribute.
Speaker Change: Two the enduring popularity of the domestic travel.
Speaker Change: Second problem travel.
Jain: The up-and-travel market emerged as a driving force behind the travel market recovery last year, and its significance persists into 2024. In Q1, international flight capacity across the industry rebounded to about 70% of the pre-pandemic level compared to 2019. Our platform witnessed urban travel bookings consistently outpacing the market by 20 to 30 percent. During the Chinese New Year period, our Aowang bookings fully recovered to the pre-pandemic 2019 level. On a year-over-year basis, our album, hotel, and air ticket bookings surged by more than 100%.
Outbound travel market emerged as a driving force behind the travel market recovery last year and its significance persists into 2024.
Speaker Change: In Q1, the international flight capacity across the industry rebounded to about 70% of the pre pandemic.
Speaker Change: Level compared to <unk> 19.
Speaker Change: Platform witnessed outbound travel bookings consistently healthy.
Speaker Change: <unk>.
Speaker Change: Market by could take to 30% during the Chinese new year period.
Speaker Change: Bookings fully recovered to the pre pandemic 10019 level on.
Speaker Change: On a year over year basis, a lot of hotel and air ticket bookings.
Speaker Change: I'm more than 100%.
Jain: Alongside a notable increase in market sentiment and a notable stabilized supply, a relaxed visa requirement in Southeast Asia has further catalyzed the attention of Chinese album travelers. According to CAAC estimates, Chinese outbound travel is anticipated to rebound to 80 percent of pre-pandemic levels by the end of this year. Foot, Global Market.
Speaker Change: Alongside a notable increase in the market sentiment and a notable site.
Speaker Change: For life the supply are relaxed the visa requirement in southeast Asia has spurred that catalyzed the attention of Chinese outbound travelers. According to C. AAC estimate China outbound travel is anticipated to rebound to 80%.
Speaker Change: Our pre pandemic levels by the end of this year.
Speaker Change: So the global market.
Jain: With many beyond China's borders, we have diligently strengthened our product and service offerings in the global market, particularly witnessing steady growth in the Asia-Pacific region. Our core competence lies in delivering a superior user experience through our one-stop shopping platform, customer service, and offering value, a strong value for our travelers, providing top-notch service via our mobile app and customer support, and furnishing comprehensive information to inspire and aid travelers in making informed decisions. We have enhanced collaboration with our global partners to provide a hassle-free travel experience for travelers around the world.
Speaker Change: They need beyond China borders, we have elegantly strengthened our product and services offerings and global market, particularly witnessing now.
Speaker Change: The growth in Asia Pacific region.
Speaker Change: Our core competence lies in deliberate.
Speaker Change: Superior user experience through our one stop shopping platform customer service and offering a value.
Speaker Change: Strong value for our travelers, providing top notch service via our mobile app and customer support and furnishing comprehensive information to inspire and eight colorless in making informed the decision we made in collaboration with our global.
Speaker Change: Panthers to provide hassle free travel experience for travelers around the world.
Jain: In Q1, the total revenue of our overseas OTA platform, Trip.com, surged by about 80% year-over-year. We remain committed to becoming the go-to platform in Asia within the coming three to five years. Now, I would like to give some strategic highlights in a couple of areas. First, the income market. While our other segments continue to thrive, the growing potential for inbound travel to China is becoming increasingly evident. China has taken proactive steps to bolster its inbound travel sector by implementing visa-free entry for citizens from more than 15 countries, such as France, Germany, Italy, the Netherlands, Spain, Switzerland, etc.
Speaker Change: In Q1, the total revenue.
Speaker Change: C O T platform kept all com searched by about 80% year over year, we remain committed to becoming the go to platform in Asia within the coming three to five years.
Speaker Change: Now I would like to give some strategic highlights a couple of areas first inbound market.
Speaker Change: Right.
Speaker Change: Our other segments continue to thrive.
Speaker Change: <unk> potential for inbound travel to China is becoming increasingly evident.
Speaker Change: China has taken proactive steps to bolster its inbound travel sector by implementing visa free entry for citizens for more than 15 countries, such as France, Germany, Italy, Netherlands, Spain, Switzerland et cetera.
Speaker Change: Yeah.
Jain: This strategic move has already yielded promising results. Our platform has witnessed a significant 400% year-over-year increase in inbound travel bookings, with a notably surge in arrivals from key markets such as Singapore, which has surged tenfold, followed by Malaysia with nine, Votes increased, and France, Spain, and Thailand each increased by four votes. The future of inbound travel to China holds immense promise, with visa-free policies and innovative payment solutions positioned further to enhance the appeal of our visits to China.
Speaker Change: This strategic move has already yielded promising results our platform has witnessed a significant 400% year over year increase in inbound travel booking.
Speaker Change: Notably search arrivals from key markets, such as Singapore, which has searched tenfold.
Speaker Change: Followed by Malaysia with nine.
Speaker Change: Boats increased and France, Spain, and Thailand, each increased by four votes.
Speaker Change: The future of inbound travel to China holds immersed problem it vis vis a free policies and innovative payment solutions position.
Speaker Change: Further to enhance our appeal.
Speaker Change: Our visiting to China.
Jain: As we address the pain points and implement solutions, traveling to China will become increasingly enticing, offering exciting opportunities for growth and development for the inbound market. Second, the silver generation, which is the senior population as we explore new market opportunities within China. Another intriguing aspect arises, the growing demand from the senior citizens, known as the silver generation.
Speaker Change: As we address the pinpoint.
Speaker Change: And implement solution traveling to China, we have become increasingly enticing offering exciting opportunities for growth and development for the inbound market.
Speaker Change: Second the silver generation, which is the senior.
Speaker Change: Population as we explore new market opportunity within China.
Speaker Change: And then the in jewelry.
Rice's brilliant cover demand from the senior citizens no known as a silver generation.
Speaker Change: While the young generation remains a key demographic for Cabo a rapidly growing senior population is emerging as a significant market segment.
Jain: While the young generation remains a key demographic for trouble, a rapidly growing senior population is emerging as a significant market segment. With longer and healthier lifespans, as well as financial sustainability, many seniors, particularly those in urban areas, are willing to engage in more leisure activities, such as travel. Moreover, today's seniors are more active and adventurous than the preceding generations, demonstrating a key interest in exploring new destinations and immersing themselves in diverse cultures.
Speaker Change: With longer and healthier life spend as well as financially.
Speaker Change: Many seniors, particularly those in urban areas are willing to invest more leisure activities such as travel.
Speaker Change: Moreover, today's seniors are more active and adventurous than the preceding generations administrating, our key interest in exploring new destinations and immersing themselves in diverse cultures.
Jain: Our inclination towards off-peak travel seasons also has the potential to bridge the gap between peak and off-peak travel periods in China. According to an estimate from China Tourism Research Institute, by 2025, a number of healthy senior citizens with frequent travel habits and high annual spending is projected to exceed 100 million with an estimated market size of over 1 trillion RMB. It's noteworthy that in 2023, our Silver Generation cohort accounted for 10% of our total user base. In response to the unique needs and preferences of senior travelers, we introduced the Old Friends Club initiative this year.
Speaker Change: Our inclination towards off peak travel season also has a potential to bridge that gap.
Speaker Change: And off peak Colby.
Speaker Change: Curious in China.
Speaker Change: According to the estimate from China Tourism Research Institute by <unk> 25, a number of healthy senior citizens with frequent travel habits and higher spending.
Speaker Change: Is projected to exceed $100 million with an estimated market size of over one trillion RMB.
Speaker Change: It's.
Speaker Change: Noteworthy is that in 2023, our silver generation cohort.
Speaker Change: For 10% of our total user base.
Speaker Change: Response to the unique needs and preferences of the senior travelers, we introduced or the French club initiative. This year. This program aims to provide senior colorless with high quality, one stop travel offerings complemented by our exceptional.
Jain: This program aims to provide senior travelers with high quality one-stop travel offerings complemented by our exceptional customer service and personalized assistance. With an initial launch of over 700 exclusive products, covering more than 40 destinations nationwide, our goal is to collaborate with more partners to develop travel products tailored specifically to preferences of the silver generation, thereby infusing new energy into the domestic travel market.
Speaker Change: Customer service and personalized assistance, we'll initiate.
Speaker Change: Launch of over 700 exclusive products covering more than 40% or 40 destinations national wide. Our goal is to collaborate with more partners to develop travel products tailored specifically to preference.
Speaker Change: It is all silver generation nearby infusing new energy into the domestic travel market.
Speaker Change: Good young generation, capturing the attention of the young demographic is also important for success in travel market.
Jain: Capturing the attention of the young demographic is also important for success in travel markets. In China, entertainment events such as concerts, music festivals, sports occasions, and cultural events hold significant appeal for the youth. This interest has evolved from traditional sightseeing to immersive experiences, blending recreational activities with broader travel adventures. This trend is not only bound by seasons, and young travelers are eager to embark on journeys at any time. Currently, more than 80% of our customers were born after 1980, and more than 50% of our users were born after 1990.
Speaker Change: In China Entertainment events, such as concerts music festivals sports patients and a cultural events.
Speaker Change: Significant appeal for that use.
Speaker Change: This interest has evolved from traditional sightseeing to immersive experiences blending recreational activities with broader travel adventures.
Speaker Change: Trend is not only owned by seasons.
Speaker Change: The young travelers are eager to embark on journeys at any time.
Speaker Change: Currently more than 80% of our customers or bone after 1980 and more than 50% of our users were born after 1990, we are committed to capturing chip.
Jain: We are committed to capturing trips that, We are committed to curating trips to seamlessly integrate entertainment and cultural exploration by staying attuned to the evolving preference of our young travelers. Our goal is not only to attract them for individual trips but also to forge lasting connections. This strategic approach ensures our continued relevance and growth within the dynamic travel market. Fourth, social responsibility.
Speaker Change: That.
Speaker Change: We are committed to operating shifts to seamless integrating entertainment and cultural exploration.
Speaker Change: Staying attuned to the evolving preferences of our young travelers. Our goal is not only to attract them for individuals chips, but also to forge lasting connection.
Speaker Change: This strategic approach, ensuring our continued relevance and growth we think the dynamic travel market.
Jain: Our company continues to thrive, and we firmly believe in the importance of giving back to society. Alongside our growth, we actively support and collaborate with various stakeholders in our travel ecosystem, including hotels, airlines, destinations, airports, small agencies, chauffeur drivers, etc. By assisting them in seizing market opportunities and expanding their businesses, we aim to foster a vibrant and interconnected travel community. Furthermore, we are committed to creating more job opportunities and fueling rural development through strategic investment.
Speaker Change: Fourth social responsibility our company continues to thrive.
Speaker Change: And we firmly believe in the importance of giving back to society.
Speaker Change: Alongside our growth.
Speaker Change: We actively support and collaborate with various stakeholders in our travel ecosystem.
Speaker Change: Holding hotels airlines destination airports small agencies chauffeured drivers et cetera.
Speaker Change: Assisting them in season, the marketing market opportunities and expanding their businesses.
Speaker Change: Aim to fostering a vibrant and interconnect hub.
A community.
Speaker Change: Furthermore, we are committed to.
Speaker Change: Two <unk>.
Speaker Change: Creating more job opportunities and fearing rural development through strategic investments.
Cindy: For instance, our Trip.com Country Retreats initiative has sparked a significant increase in the number of local lodging facilities, with reservations increasing by 80%. This initiative has not only created 20,000 new jobs but also contributed to an incremental income of 40,000 RMB per person in these specific regions. Through these efforts, we are dedicated to making a positive and long-lasting impact on both the travel industry and the community we serve. In summary, 2024 is shaping up to be a good year for travel, benefiting from a notable shift in consumption patterns.
Speaker Change: For instance, our trip com country retreat.
Speaker Change: <unk> have spot.
Speaker Change: A significant increase in number of local lodging facilities.
Speaker Change: Reservation, increasing by 80%.
Speaker Change: This initiative has not only.
Speaker Change: Created 20000, new jobs, but also contributed to an incremental income of 40000 RMB per person in this specific region.
Speaker Change: Through these efforts, we are dedicated to making a positive and long lasting impact on <unk>.
Speaker Change: Most of the travel industry and the community we serve.
Speaker Change: In summary, 2024 is shaping up to be a good year for travel.
Speaker Change: <unk> from a notable shift in consumption pattern across all of our business segments, we observed resilience in cargo demand and anticipated exciting development opportunities on the head.
Cindy: Across all of our business segments, we observed resilience in travel demand and anticipated exciting development opportunities on the horizon. Looking forward, we remain optimistic about the market performance in the upcoming quarter and are dedicated to working closely with partners to capitalize on the opportunities and continue growth for the travel industry. With that, I will now turn the call over to Cindy. Thanks, Jane. Good morning, everyone.
Speaker Change: Horizon looking forward, we remain optimistic about the market performance in the upcoming quarter and are dedicated to working closely with partners to capitalize on opportunities.
Speaker Change: <unk> growth for the travel industry.
Speaker Change: With that I will.
Speaker Change: Now ill turn the call over to Cindy.
Cindy: For the first quarter of 2024, Trip.com Group reported a net revenue of RMB 11.9 billion, representing a 29% increase from the same period last year and a 15% increase from the previous quarter, primarily due to the strong recovery in the travel market. Accommodation reservation revenue for the first quarter was RMB 4.5 billion, representing a 29% increase year over year and a 15% increase quarter over quarter. Domestic and outbound hotels have seen robust growth and outpaced the industry. Transportation ticketing revenue for the first quarter was RMB 5 billion, representing a 20% increase year-over-year and a 22% increase quarter-over-quarter.
Cindy: Thanks, James Good morning, everyone for the first quarter of 2020 for trip Com Group reported a net revenue of RMB 11, 9 billion, representing a 29% increase from the same period last year and a 15% increase from the previous quarter.
Cindy: Primarily due to strong recovery in the travel market.
Cindy: Accommodation reservation revenue for the first quarter was RMB, four 5 billion, representing a 29% increase year over year, and a 15% increase quarter over quarter domestic and outbound hotel has seen robust growth and outpaced in.
History.
Cindy: Transportation ticketing revenue for the first quarter was RMB 5 billion, representing a 20% increase year over year, and a 22% increase quarter over quarter.
Cindy: This is mainly due to the robust recovery of outbound air and strong growth in domestic and global air business. Package tour revenue for the first quarter was RMB883 million, representing a 129% increase year-over-year and a 25% increase quarter-over-quarter. Domestic package tour revenue has already surpassed the 2019 level. The year-over-year growth was mainly driven by outbound revenue, which increased by multifold. Corporate travel revenue for the first quarter was RMB511 million, representing a 15% increase year-over-year and a 19% decrease quarter-over-quarter. The sequential decrease was in line with normal seasonality.
Cindy: This is mainly due to robust recovery of outbound air and strong growth in domestic and global air business.
Cindy: Packaged tour revenue for the first quarter was RMB $883 million, representing a 129% increase year over year, and a 25% increase quarter over quarter.
Cindy: Domestic package tour has already surpassed the 2019 level of year over year growth was mainly driven by outbound revenue, which increased by multifold.
Cindy: Corporate travel revenue for the first quarter was RMB $511 million.
Cindy: Representing a 15% increase year over year, and a 19% decrease quarter over quarter. The sequential decrease was in line with normal seasonality.
Cindy: Excluding share-based compensation charges, our total adjusted operating expenses were 6% higher than the previous quarter and was 24% higher than the same period last year. Adjusted product development expenses for the first quarter increased by 7% from the previous quarter. Adjusted DNA expenses for the first quarter increased by 9% from the previous quarter.
Cindy: Excluding share based compensation charges, our total adjusted operating expenses was 6% higher than the previous quarter.
Cindy: <unk> was 24% higher than the same period last year.
Cindy: Adjusted product development expenses for the first quarter increased by 7% from the previous quarter.
Cindy: Adjusted G&A expenses for the first quarter increased by 9% from the previous quarter.
Cindy: This was mainly due to an increase in personnel-related expenses. Adjusted sales and marketing expenses for the first quarter decreased by 1% from the previous quarter and increased by 32% from the same period last year. A year-over-year increase was primarily due to increased marketing promotion activities in line with business growth. Adjusted EBITDA margin was 33% for the first quarter compared with 31% for the same period last year and 28% in the previous quarter; diluted earnings per ordinary share and per ADS were IMD 6.0.
Cindy: This is mainly due to increase in personnel related expenses.
Cindy: Adjusted.
Cindy: Sales and marketing expenses for the first quarter decreased by 1% from the previous quarter and increased by 32% from the same period last year.
Cindy: The year over year increase was mainly was primarily due to increased marketing promotion activities in line with business growth.
Cindy: Adjusted EBITDA was RMB 4 billion for the first quarter comp.
Cindy: Compared with RMB, two 8 billion in the same period last year and RMB, two 9 billion in the previous quarter.
Cindy: Adjusted EBITDA margin was 33% for the first quarter compared with 31% in the same period last year and 28% in the previous quarter.
Cindy: Okay.
Cindy: Diluted earnings per ordinary share and per ads were RMB <unk> six point.
Cindy: $6.38 or U.S. dollar 88 cents for the first quarter of 2024, including share-based compensation charges and fair value changes of equity security investment exchangeable senior notes. Non-cap diluted earnings per ordinary share and per ADS were RMB8.06 or US$0.83 for the first quarter.
Cindy: 638.
Cindy: <unk> dollars 88.
Cindy: For the first quarter of 2024.
Cindy: Excluding share based compensation charges and fair value changes of equity security investments are exchangeable senior notes.
Cindy: non-GAAP diluted earnings per ordinary share and per ads were RMB.
Cindy: <unk> six or <unk> dollars 83 for the first quarter.
Operator: As of March 31st, 2024, a balance of cash and cash equivalents, Restricted cash, short-term investment, held to maturity time deposit, and financial products was RMB $81.9 billion, or U.S. dollar, 11.3 billion. The strong recovery in the first quarter of 2024 across market segments is encouraging. As we venture into the second quarter, we are delighted to see persistent strong demand on our platform. This demand continues to drive substantial growth across travel segments, even in the face of challenging comparisons.
Cindy: As of March 31, 'twenty plentiful, our balance of cash and cash equivalents reached.
Cindy: Restricted cash short term investments held to maturity time deposits and financial products was RMB $81 9 billion.
Cindy: U S dollar 11 3 billion.
Cindy: The strong recovery in the first quarter of 2024 across market segment is encouraging.
Cindy: As we venture into the second quarter, we are delighted to see persistent strong demand.
Cindy: Our platform.
Cindy: This demand continues to drive substantial growth across travel segments.
Cindy: Even in the face of challenging comparisons.
Operator: We have noticed a decline in hotel and air prices, which could potentially affect our revenue growth. Nevertheless, we anticipate this will have a limited impact on our net earnings due to our strong management of operational efficiency.
Cindy: We have noticed a decline in hotel and air prices.
Cindy: Which could potentially affect our revenue growth.
Cindy: Nevertheless, we anticipate this will have a limited impact on our net earnings due to our strong management operational efficiency.
Operator: With that, Operator, please open the line for questions. Thank you. As a reminder, to ask a question at this time, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. We ask that you please limit yourself to one question.
Speaker Change: With that operator, please open the line for questions.
Speaker Change: Thank you.
As a reminder to ask a question at this time. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: Draw. Your question. Please press Star one again, we ask that you. Please limit yourself to one question one moment, while we compile our Q&A roster.
Brian Gong: One moment while we compile our Q&A roster. And our first question is going to come from the line of Brian Gong with Citi. Your line is open. Please go ahead.
Speaker Change: And our first question is going to come from the line of Brian <unk> with Citi. Your line is open. Please go ahead.
James: Thank you. Good morning, James, Jane, Cindy, and Michelle. Thanks for taking my question and congratulations on solid results. So, my question is regarding our group has... Yeah, our group has successfully captured the pent-up demand and continues to demonstrate strong growth in the first quarter for the domestic, autobahn, and international platform or business line. So looking ahead, what growth drivers or new initiatives should the investor pay attention to in management's view? Thank you. Thank you very much for the question. China.
Thank you good morning, James Jane Cindy and Michelle Thanks for taking my question and congratulations on solid results.
Speaker Change: So my question is regarding our group.
Speaker Change: <unk>.
Speaker Change: Yes, our group has successfully captured as a pent up demand and a continuing to demonstrate strong growth in the first quarter toward domestic and international platform. Our business a lot. So looking ahead what growth drivers on new initiatives.
Speaker Change: They are paying attention to the management's view thank you.
Speaker Change: Thank you very much for the question.
Speaker Change: Yeah.
James: We will focus on steadily expanding our user base in the second and third tier cities and improving user acquisition and cross-selling ratios. Additionally, we expect the benefits from the growth of ongoing travel in the upcoming years on the International Front. Trip.com will maintain its focus in Asia and strive to become a regional and a global leading player. We are actively pursuing opportunities in China's inbound travel market, which has a great market size.
Speaker Change: In China, we will focus on.
Expanding our user base in the second and third tier cities.
Speaker Change: User acquisition and cross selling ratios.
Speaker Change: Additionally, we expect to benefit from the growth of online travel.
Speaker Change: Yes.
Speaker Change: On the international front.
Speaker Change: We will maintain its focusing Asia and strive to become a regional and a global leading player.
Speaker Change: As for new initiatives.
Speaker Change: We are actually really.
Speaker Change: Doing opportunities in China's inbound travel market, which.
Speaker Change: Great market size.
Speaker Change: Add to this.
James: Multi-Trillion RMB Level. Domestically, we are introducing tailor-made products for the silver generation, which represents another trillion RMB market opportunity. [inaudible] We are introducing new product combinations, such as entertainment activities plus travel to cater to the evolving market demands of the younger generation. We remain dedicated to investing in our content strategy and AI development to our one-stop business model. These investments aim to enhance users' fitness.
Speaker Change: RMB level.
Speaker Change: Domestically, we're going to do.
Speaker Change: Are you seeing tailor made products for the silver generation.
Speaker Change: Another RMB.
Speaker Change: Opportunity.
Speaker Change: Furthermore.
Speaker Change: We're introducing new product combinations.
As entertainment activities such as travel.
Speaker Change: As to the evolving market demands of the younger generation.
Speaker Change: We remain dedicated to investing.
Speaker Change: Strategy.
Speaker Change: Strategy.
Speaker Change: Element.
Speaker Change: And to grow.
One stop business model.
These investments.
Speaker Change: Yes.
Operator: Engagement and Operating Exchange Efficiency. Thank you. Thank you. Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Thomas Chong with Jeffries.
Speaker Change: Engagement operating machine efficiency.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: Thank you and one moment as we move on to our next question.
Speaker Change: And our next question is going to come from the line of Thomas Chong with Jefferies. Your line is open. Please go ahead.
Thomas Chong: Your line is open. Please go ahead. Hi, good morning. Thanks, management, for taking my question. Recent news headlines and industry data suggest a notable decrease in hotel ADR and slowdown of hotel web traffic. Have you also observed this trend?
Hi, Good morning, Thanks management for taking my questions are reasons, new cat lines of industry data suggests bookable decrease in wholesale ABL and slow down.
Speaker Change: That path has been also observe these trends are positive, indicating a return in one downgrade in consumer spending. Additionally, what are the price trend for outbound hotel.
Cindy: Does this indicate a weakening or downgrade in consumer spending? Additionally, what are the price trends for outbound hotel advice? Thank you. Thank you, Thomas.
Speaker Change: Thank you.
Cindy: Yeah, we also observed a decline in domestic ADR in recent months, which was largely influenced by the shift in travel preference towards outbound destinations and as well as the lower tier cities, and the increased availability at the same time, and the increased availability of hotels and flights. Firstly, we think outbound travel has notably increased this year, attracting a lot of mid- to high-end travelers away from our domestic options. Secondly, the lower-tier cities now offer excellent value as transportation and accommodation infrastructure have significantly improved over the past few years. Additionally, the increase in hotel and air supply has put pressure on short-term prices across the board, particularly when compared to the high benchmark established during last year's peak season.
Thomas Chong: Thank you Thomas Yeah, we also observed a decline in domestic ADR in recent months.
Speaker Change: Which was largely influenced by the shift in travel preference towards outbound destinations and as well as the lower tier.
Speaker Change: Cities and the increased availability.
Speaker Change: At the same time and the increased availability.
Speaker Change: One of the hotels and flights.
Speaker Change: Firstly, we think the outbound travel has notably increased this year, attracting a lot of our mid to high end travelers away from our domestic options secondly, a lower tier cities now offer excellent value as transportation and accommodation.
Speaker Change: <unk> has significantly improved over the past few years.
Speaker Change: Similarly, the increase in hotel Air supply has put pressure on short term prices across the board, particularly when compared to the high benchmark established during last year's peak seasons.
Cindy: Overall, we believe the expansion and diversity of travel supplier capacity will greatly contribute to the overall growth and stability of OTAs as a distributor, as well as the travel industry as a whole. With regard to Albon, the Albon air ticket price has been normalizing as flight capacity continues to recover. And the current level stays around about 115% of the 2019th level compared to over 130% of the 2019th level during the same period last year. The average Albon hotel price has been quite stable compared with last year.
Speaker Change: Overall, we believe the best.
Speaker Change: Pension and diversity of travel supply of capacity will greatly contribute to the overall growth and the ability of.
Of Otas asset distributor as well as the travel industry at home.
With regard to the outbound.
Speaker Change: Our air ticket price has been normalizing as flight capacity continues to recover and the current level stays around.
Speaker Change: About 115% of the 2019 level compared to over 130% of the 2019 level. During the same period last year average Alba hotel price test.
Speaker Change: Being quite stable compared with last year. Thank you.
Yeah.
Speaker Change: Thank you.
Operator: Thank you. Thank you. Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Joyce Ju with Bank of America. Your line is open. Please go ahead.
Speaker Change: Thank you and one moment as we move on to our next question.
Speaker Change: And our next question is going to come from the line of Joyce Ju with Bank of America. Your line is open. Please go ahead.
Lixin Ju: Good morning, James, Jane, Cindy, and Michelle. Congratulations on another set of strong results, and thanks for taking my question. I would like to ask management more about the company's recent business performance, especially colors during and following the Labor Day holiday. As we are now moving into summer, could management also share your expectations for business momentum for the third quarter and beyond? Many thanks.
Lixin Ju: Good morning, James Jane Cindy and Michelle Congrats on another set of strong set of results and thanks for taking my question.
Lixin Ju: I would like to ask if management could you elaborate more on the company's recent.
Lixin Ju: Business performance, especially colors during and following the labor day holiday.
Speaker Change: As we are now moving into summer could management also share your expectations on business momentum for the third quarter and the young many thanks.
Jain: Sure. Our domestic and outbound travel bookings reached a new high record during the recent Labor Day holiday, specifically outbound air and hotel bookings, surpassed 120% of the 2019th level. This achievement is particularly significant considering the tough comparison to the same period last year, which was the first major holiday with strong pent-up demand for leisure travel with regard to the quarter to date. Domestic travel bookings achieved double-digit growth, with hotels leading the search. Alban Hotel and Air bookings have fully rebounded to the pre-pandemic level.
Speaker Change: Sure.
Speaker Change: Our domestic and outbound travel bookings reached a new high New high records during the recent labor day holiday.
Speaker Change: Specifically Alba Air and hotel bookings surpassed the 120% of the 2019 level.
Speaker Change: This achievement is particularly significant considering the tough comparison to the same period last year, which was the first major holidays with strong pent up demand for the leisure travelers.
Speaker Change: With regard to the quarter to date.
Speaker Change: The domestic travel bookings achieved the double digit growth with hotels, leading the search all of our hotel and air bookings have fully rebounded to the pre pandemic level.
Jain: Such robust growth significantly outperformed the market in terms of booking volume. For instance, the market level domestic hotel occupancy rate and flight passenger volume were roughly on par with 2023, while outbound flight capacity was slightly over 70% of the 2019 level. In terms of average pricing, our numbers were generally in line with the market.
Speaker Change: Such robust growth has significantly outperformed the market in terms of booking volumes for.
Speaker Change: For instance, the market level domestic hotel occupancy rates and flight passenger volumes were roughly on par with 2023.
Speaker Change: Our outbound flight capacity was slightly over 70% of the 2019 level.
Speaker Change: In terms of average pricing our numbers were generally in line with the market.
Jain: As I explained before, recently, we noticed the hotel ADR and average air ticket price have both seen a year-over-year decrease. Trip.com has maintained robust growth in the mid to high double digit percentage range, and inbound travel to China has also experienced a multi-fold increase. Now moving to the summer part, it's still quite early to observe early bookings for the summer given the short booking windows in China. However, we remain confident about the travel momentum during the summer holidays and beyond.
Speaker Change: S I S.
Speaker Change: As I explained before the recently, we noticed hotel ADR and average ticket price have both seen a year over year.
Speaker Change: Decrease.
Speaker Change: Carl has maintained robust growth in the mid to high double digit percentage range.
Speaker Change: And the inbound travel to China.
Speaker Change: <unk> also experienced a multifold increase.
Speaker Change: Now moving to the summer parked.
Speaker Change: It's still quite early to observe the early booking towards the summer given the short booking windows in China. However, we remain confident about the travel momentum in the summer holiday and beyond.
Jain: In particular, we anticipate significant growth in the outbound travel sector, driven by the ongoing recovery of flight capacity as well as the resolution of the visa backlog in relation to the global market. We anticipate Trip.com to continue its robust growth, while Skyscanner and other overseas brands are also expected to maintain a very healthy growth trajectory. Thank you. Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of James Lee with Mazuho.
Speaker Change: In particular, we anticipate significant growth in the outbound travel sector, driven by ongoing recovery of flight capacity as well as the resolution of the visa backlogs.
Speaker Change: With regard to the global markets.
Speaker Change: We anticipate triple Crown to continue its robust growth.
Speaker Change: Skyscanner and other overseas rents are also expected to maintain a very healthy growth trajectory.
Speaker Change: Thank you.
Speaker Change: Thank you and one moment as we move on to our next question.
Speaker Change: Okay.
Speaker Change: And our next question is going to come from the line of James Lee with Mizuho. Your line is open. Please go ahead.
James Lee: Your line is open. Please go ahead. Okay, great.
James Lee: Okay, Great also let me.
James Lee: Also, let me add to my congratulations to you on the quarter as well. And let me follow up maybe a little bit on the outbound question. I think, Jain, you spoke about outbound getting back to 80% of FY19 by year-end. I was wondering what factors we should think about that will either speed up or slow down that process.
Speaker Change: My congratulations to you on the quarter as well.
Speaker Change: Let me follow up maybe a lift at all outbound question I think Jim you spoke about outbound getting back to 80%.
Speaker Change: 2019 by year end I was wondering what factors that we should think about that.
Speaker Change: Speed of.
Speaker Change: Slow down that process and also in terms of destination, I guess, where do you see most of the recovery.
Jain: And also, in terms of destination, I guess, where do you see most of the recovery? Especially, I think a lot of investors are interested in finding out recovery in the West, especially in the Western part of the world, especially Europe. Sure. Thank you very much for your question, James. We see a strong rebound in outbound business. The estimate is that by the end of the year, the industry should recover to 80% compared to its pre-pandemic level.
Speaker Change: Especially I think a lot of investors are interested in finding out recovery in the western.
Speaker Change: Especially in the western part of the World Western European market. Thanks.
Speaker Change: Sure.
Thank you very much for your question James we see a strong rebound in outbound business.
Speaker Change: I estimate is by the end of the year the industry should recover to 80% compared to pre pandemic level, our company can outpace the market by about 20% to 30%.
Jain: Our company can outpace the market by about 20 to 30%. There are a couple of major factors impacting the outbound business. The first one is visa applications. Many countries have offered free visas to Chinese travelers, such as Singapore, Malaysia, Thailand, and the GCC countries, such as UAE, Qatar, and also Saudi.
Jain: So we have seen a very strong pickup for the countries which offer free visas. The second factor is flight capacity. So we have seen a very strong rebound in flight capacity into Singapore, Malaysia, Thailand, and the GCC countries. So we sent a lot of people to these countries. And during the Chinese New Year, the top three long-haul travel destinations are Australia, New Zealand, and South Africa. So we have seen very strong demand and interest when customers have free visas, when we see a recovery in flight capacity, and also when customers have time and availability.
Speaker Change: There are a couple of major factors impacting our business. The first one is the visa application. Many countries have offered free visa for Chinese travelers, such as Singapore, Malaysia, Thailand, and the GCC countries, such as UAE par.
Speaker Change: And.
Speaker Change: And also so.
Speaker Change: So we have seen a very strong pickup for the countries, which offer free visas.
Speaker Change: The factors are the flight capacity.
Speaker Change: So we have see a very strong rebound in the flight capacity into Singapore, Malaysia, Singapore.
Speaker Change: Thailand, and the GCC country. So we sent a lot of people to these countries and during the Chinese new year, along or travel destinations.
Speaker Change: Top three our Australia, New Zealand and South Africa.
Speaker Change: So we have to see a very strong demand and interest.
Speaker Change: <unk> customers have free visa when we see a recovery in the flight capacity and also when customers have.
Jain: In the summer, during the summer break, we are excited that our customers will have a longer period to take their children to travel around the world. And countries which have exhibited their hospitality will be able to capitalize on this upcoming trend for the outbound recovery. However, certain countries are still lagging behind.
Speaker Change: Time and availability.
Somewhere during the summer break.
Speaker Change: Excited that our customers will have.
Speaker Change: Longer period to take their token to travel around the world in countries, which have exhibited.
Speaker Change: Hospitality will be able to capitalize on this upcoming.
Speaker Change: <unk> fourth album the recovery.
Speaker Change: However, certain countries still.
Speaker Change: And behind the <unk>.
Jain: The flight capacity is yet to recover, so we are eager to work with these regions to make sure that these applications are being processed timely, and also that flight capacity is being added before the summer holiday comes. Thank you.
Speaker Change: Flight capacity is yet to recover so we are eager to work with these regions to make sure that these applications are being processed timely.
Speaker Change: And also the <unk> capacity is being added before the summer holiday comps.
Speaker Change: <unk>.
Speaker Change: Great. Thank you.
Speaker Change: Thank you.
Operator: Thank you. Thank you. And one moment, as we move on to our next question.
Speaker Change: Thank you and one moment as we move on to our next question.
Operator: And our next question comes from the line of Alex Poon with Morgan Stanley. Your line is open. Please go ahead.
Speaker Change: And our next question comes from the line of Alex <unk> with Morgan Stanley. Your line is open. Please go ahead.
Alex Poon: Thank you and congratulations to management on very strong results. My question is regarding the opportunity of the Chinese inbound travel market and how Trip.com plans to capture this market. Additionally, can you talk about the contribution of inbound travel to Trip.com's business? Thank you very much.
Speaker Change: Okay.
Speaker Change: Thank you and congratulation Venezuela on very strong results.
Speaker Change: My question is regarding the opportunity of China, inbound travel market and how cheap dotcom plans to capture this market.
Additionally, can you talk about the contribution of inbound travel to trip Dot com business. Thank you very much.
Jain: Sure. Inbound business is a new opportunity for China's travel industry. China can offer so much to the world. It has a very rich history. It also has beautiful infrastructure. A high-speed railway station connects the countries, and every province is very unique.
Speaker Change: Sure.
Speaker Change: Inbound business is.
Speaker Change: New opportunity for China travel industry, China 10 offers so much to the world. It has very rich history and also have used for infrastructure high speed railway station connect the countries and every province is very unique.
Speaker Change: So we're very excited to invite our friends over the world to come and visit China.
Jain: So we are very excited to invite our friends all over the world to come and visit China. There are a lot of good offers being extended. First of all, free visas have been extended to many countries, such as France, Germany, the Netherlands, Italy, Spain, Switzerland, Ireland, Singapore, Malaysia, Thailand, etc.
Speaker Change: There are a lot of.
Speaker Change: Good offering be extended.
Speaker Change: First of all free visa has been extended to many countries, such as France, Germany, Netherlands, Italy, Spain, Switzerland, Ireland, Singapore, Malaysia, Thailand, et cetera, and going forward.
Jain: And going forward, as we move forward, we hope there will be more opportunities to invite people around the world to come to China. Secondly, for Trip.com, we also offer a one-stop shopping platform. Our inventory within China is excellent.
Speaker Change: We move forward, we hope there will be more opportunities to invite people around the world to come to China. Secondly for trip Com. We also offer one stop shopping platform our inventory within China is excellent.
Speaker Change: We can offer.
Jain: We can offer tickets, flight tickets, and high-speed railway tickets. We offer very nice tour packages. We also offer a free one-day tour for customers who transit in Shanghai.
Speaker Change: Tickets flight ticket high speed railway tickets.
Speaker Change: We offer very nice tour packages, we also offer a free one day tour for customers, who transit in Shanghai, So hopefully through the concerted efforts between Jabil com and local community will be able to show the hospitality to our.
Jain: So hopefully, through the concerted efforts between Trip.com and the local community, we'll be able to show hospitality to our global travelers. And thirdly, for Trip.com, we also offer more than 30 languages; our ATP, more than 30 languages in our call center around the world, offering 24 times 7 services. If a customer needs to reach our customer service within 30 seconds, we'll be able to pick up the phone address in the language that is familiar to our customers.
Speaker Change: Global travelers.
Speaker Change: And thirdly for trip Com, we also offer more than 30 languages.
Speaker Change: ETP more than 30 languages in our call center around the World offering 24 seven services.
Customer needs to reach our customer service.
Speaker Change: 30 seconds.
Speaker Change: We'll be able to pick up the full address in the language that is familiar to our customers. So we're very excited for this opportunity to exhibit.
Jain: So we are very excited for this opportunity to exhibit the beautiful history, the hospitality, and the variety of the food to our global friends. And hopefully, inbound travel will become a significant contribution to our business going forward. And yeah, and the contribution of inbound travel to the Trip.com business has improved from the team's level to over 20% of the overall revenues in the first quarter of 2024. Thank you. Thank you, Jane. Thank you, Cindy.
Speaker Change: June four history.
Speaker Change: Hospitality.
Speaker Change: A variety of the food too.
Two our global friends, so hopefully inbound travel web become.
Speaker Change: The significant contribution to our business going forward.
Speaker Change: Yes, and the contribution of the inbound travel to the trip alcohol business has improved this round the teens level to over 20%.
Speaker Change: Of the overall revenues in the first quarter of 2024. Thank you.
Speaker Change: Thank you Jamie Thank you Sandy.
Operator: Xiexie, thank you. Thank you, and one moment as we move on to our next question. And our next question comes from the line of Jiong Shao with Barclays. Your line is open. Please go ahead.
Speaker Change: Thank you.
Speaker Change: Thank you and one moment as we move on to our next question.
Speaker Change: And our next question comes from the line of juncture with Barclays. Your line is open. Please go ahead.
Jiong Shao: Thank you very much for taking my question. I think you just mentioned that Trip.com's contribution is now over 20% of the revenue. I just want to follow up on that.
Speaker Change: Thank you very much for taking my question.
Speaker Change: I think you just mentioned.
Speaker Change: That.
Speaker Change: Chip Dot Com contribution is now over 20% of your revenue.
Speaker Change: Just wanted to follow up on that I was hoping you can elaborate a bit on your trip dotcom business could you talk about.
Jain: I was hoping you could elaborate a bit on your Trip.com business. Could you talk about, for example, the regional breakdown or product line breakdown for that business in terms of the take rate and average room rate for that pure international Trip.com business? As you compete in Southeast Asia and in other parts of the world, clearly, there are already existing players. Could you talk about what you bring as a differentiation to obviously grow your market share? What are you doing differently or better than some of the existing players?
Speaker Change: For example, the regional breakdown or product line broke down for that business and in terms of the take rate.
Speaker Change: And average room rate for that pure international trip Dotcom business and as you compete.
Speaker Change: In southeast Asia and in other parts of the World.
Speaker Change: Clearly there are already existing players could you talk about sort of what you, bringing as a differentiation to too obviously.
Speaker Change: Grow grow grow your market share what are you guys doing differently or better than some of the existing players. Thank.
Speaker Change: Thank you so much.
Jain: Thank you so much. Thank you. Firstly, a clarification on the contribution. Actually, a 20% contribution is the inbound contribution to the overall Trip.com business rather than Trip.com's revenue contribution to the total group. With regard to the Trip.com revenue contribution to the total group, which is around 10% in the first quarter of 2024, I'm, We in which over 70% or around 70% actually come from the Asian market. And with increased cross-selling ratios, our mobile hotel bookings now contribute more than 35 percent of the total revenues of the Trip.com business.
Speaker Change: Thank you firstly, just as the first leg.
Speaker Change: <unk> patients on the contribution.
Speaker Change: <unk>.
Speaker Change: Contribution of 20% contribution actually is the inbound.
Speaker Change: Contribution to the overall comm business rather than the typical revenue contribution to the total group with.
Speaker Change: With regard to the trip Com revenue.
<unk>.
Speaker Change: Contribution to the total growth which is around 10.
Speaker Change: 10% in.
Speaker Change: In the first quarter of 'twenty.
Speaker Change: 24.
Speaker Change:
Speaker Change: We are in.
Ashley: In which over 70% or around 70% to Ashley coming from the Asia markets.
Ashley: And with an increased cross selling ratios are mobile hotel bookings now.
Ashley: Hotel bookings now contribute more than 35% of the total revenues of the trip com business and the take rates for the hotel and air reservations on the trip I'll call are similar to those.
Jain: And the take rates for the hotel and the air reservations on Trip.com are similar to those of our Albon business, while we have recently turned profitable on the contribution margins for the Trip.com business, and we expect Trip.com to achieve a healthy margin as its scale further increases in the longer term. With regard to the co-competence of our Trip.com business, yes, there are a lot of players in the international market. For example, Trip.com's global mobile app, AutoShare, increased to around 65% in the first quarter. In several key markets, the number has reached over 75%.
Ashley: Our outbound business.
Ashley: While we have recently turned profitable on the contribution margins for the Triple combos newness and we expect it to.
Ashley: To achieve a healthy margin.
Ashley: As at scale.
Ashley: Further increase in the longer term period.
Ashley: With regard to the our core competency.
Ashley: Pittance of our Truecar Com business, yes, there is a lot of the players.
Ashley: Players.
Ashley: In the in the in the international markets as well as in the Asia market. However.
Ashley: The call has a lot of our unique selling point.
For our users firstly trip across mobile App offers a smooth and user friendly search and booking experience and complement it come from.
Ashley: We ended by the AI tools for the personalized recommendations and special offers which further enhancing our user engagement. For example, the triple caused global mobile App other share has increased to around 65% in the first quarter.
Ashley: With several key markets the number.
Ashley: Has reached over 75%.
Jain: Secondly, we have a comprehensive one-stop model that caters to nearly all travel needs, which is particularly appealing to mobile app users. And our extensive experience in China further enhances our expertise in these areas. Third, we provide 24 hours and 7 days customer service via phone calls, online chats, and all emails, ensuring our users have reliable support for any issues that they encounter.
Ashley: Secondly, we have a comprehensive one stop model caters to nearly of nearly all travel needs, which is particularly appealing to mobile app users and our extensive experience in China further enhance our expertise in these areas.
Ashley: Third we provide 24 hours seven days customer service.
Ashley: The full cost all I chat all the emails ensuring our users have reliable support for any issues that the encounters.
Operator: Fourth, Trip.com offers highly competitive offerings, leveraging the group's strong market presence and well-established supplier relationships. Last but not least, with particularly strong product and service in China, a surge in inbound travel presents an excellent opportunity for our Trip.com business to capitalize on its unique advantages. Thank you. Thank you. Thank you very much.
Ashley: Fourth the triple call offer highly competitive offerings, leveraging the group's strong market presence and well established supplier relationship.
Ashley: Last but not least with particularly strong product and service in China, a search in inbound travel presents an excellent opportunity for our trip com business to capitalize on its unique advantages. Thank.
Ashley: Thank you.
Ashley: Thank you.
Thank you very much.
Alex C. Yao: Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Alex Yao with J.P. Morgan. Your line is open. Please go ahead.
Thank you and one moment as we move on to our next question.
Speaker Change: And our next question is going to come from the line of Alex Yao with Jpmorgan. Your line is open. Please go ahead.
Jain: Good morning, management, and congratulations on a solid quarter. So, Trip.com has been growing very rapidly over the past few years. Can you talk about Trip.com's addressable market size and the competitive landscape in Asia? Thank you.
Alex C. Yao: Good morning management.
Congratulations on the solid quarter.
Alex C. Yao: So triple combo has been growing very rapidly in the past few years can you talk about.
Alex C. Yao: The addressable market size and the competitive landscape.
Speaker Change: Thank you.
Jain: When we look at the market size... Outside of China, the total Asian market is equivalent to 1.5 times China's market, so it's quite significant. Secondly, we feel we have a couple of advantages. First of all, we offer a one-stop shopping platform, which is really convenient for our consumers. Secondly, our users' experience on mobile is excellent.
Speaker Change: Sure.
Speaker Change: When we look at the market size.
Speaker Change: Outside of China. The total Asia is equivalent to one five times China's market. So it's quite significant.
Speaker Change: Secondly, we feel we have a couple of advantages first of all we offer one stop shopping platform, which is really convenient for our consumers secondly, our users' experience on mobile is excellent in China more than 90% of our customers used mobile so we'll.
Jain: In China, more than 90% of our customers use mobile, so we'll be able to amplify our experience into global markets. Thirdly, our excellent customer service. And we want to make sure that we serve our customers outside of China, as well as the customers within China. And lastly, we also have a very strong outbound business, which enables our team to negotiate very good deals for our global customers. So these are the strengths we have.
Speaker Change: Be able to.
Speaker Change: <unk> our experience into the global places thirdly is our excellent customer services.
Speaker Change: And we want to make sure that we serve our customers outside of China as well as the customers with in China.
Speaker Change: And lastly, we also have very strong outbound business, which enable our team to win.
Speaker Change: Negotiates very good deal for our global customers. So these are the strengths we have.
Operator: We will make sure that we provide excellent products and excellent services to our global customers. Thank you. Thank you, and one moment for our next question. And our next question comes from the line of Simon Chung with Goldman Sachs. Your line is open. Please go ahead.
Speaker Change: We will make sure that we provide excellent products and excellent services to our global customers. Thank you.
Speaker Change: Okay.
Speaker Change: Thank you and one moment for our next question.
Speaker Change: And our next question comes from the line of Simon Cheung with Goldman Sachs. Your line is open. Please go ahead.
Simon Cheung: Hi, Good morning, Thanks for taking my question I, just have one small questions again in relation to the <unk>.
Speaker Change: Margins, which has consistently I guess b than market expectations.
Speaker Change: I've been receiving a lot of inbound inquiry asking.
Speaker Change: The different margin profile for your telecom business your outbound business and your domestic business.
Simon Chung: Perhaps you can share with us, you know, if you have any data you can share by the respective business, the relative margin profile, maybe the take rate. And secondly, you know, what should we think about the margin trend? We have seen your sales and marketing, you know, as a percentage of revenue consistently trending lower. Thank you. We have achieved a healthy margin level for our domestic business thanks to the large scale and scalability that we have achieved. And at the same time, related costs, including the service cost, the product development cost, as well as sales marketing cost, are quite similar to compare with the domestic business.
Speaker Change: Perhaps maybe you can share with us.
Speaker Change: Have any data you can share by the respective business the relative margins profile.
Speaker Change: Maybe the take rate.
Speaker Change: And secondly, how should we think about the margin trend we have seen.
Speaker Change: I was in marketing.
Speaker Change: As a percentage of it.
Speaker Change: <unk> consistently.
Speaker Change: Trending lower.
Speaker Change: In this particular quarter. We also see publicly one of my more actually trending lower on a year on year basis.
Speaker Change: Any color would be appreciated thank you.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: We have we have achieved.
Speaker Change: Healthy margin level for our domestic.
Speaker Change: To the.
Large scale.
Speaker Change: Scalability that we achieved.
Speaker Change: And the.
Speaker Change: The outbound business normally has a slightly higher margin.
Speaker Change: Next to.
Speaker Change: Our average higher selling price and at the same time.
Speaker Change: Related costs, including the service costs that the product development cost as well as sales marketing cost are quite similar to the.
Speaker Change: Compare with the domestic business. So therefore outbound travel normally is a higher margin business for us.
Cindy: So, therefore, outbound travel normally is the higher-margin business for us. With regard to the Trip.com business, as I said before, although the Trip.com business has a CEO in the investment period, we closely monitor the contribution margin of the Trip.com business. So, in summary, we expect our margins to align with the typical seasonal patterns, reflecting strong business growth and disciplined cost management.
Speaker Change: With regard to the trip Com business as I said before we closely although the trip com business has to deal in the investment period. However, we closely monitor the contribution margin of the trip Com business and recently, our Truecar com business as a whole has achieved.
Speaker Change: At least a breakeven level in <unk>.
Speaker Change: In terms of the in terms of the contribution margin and in the longer term period, we strongly believe that the triple Com business will also become.
Speaker Change: Our profitable healthy growth business.
Speaker Change: In the future.
Speaker Change: So.
Speaker Change: In summary, we expect our margins to align with that will be aligned with the typical seasonal seasonal patterns.
Speaker Change: Reflecting the strong business growth and disciplined cost management.
Speaker Change: Looking ahead, our margin expansion were primarily stem from operational scalability and approve the sales marketing efficiencies.
Speaker Change: This may be partly offset by additionally, additional expenses.
Speaker Change: Associated with expanding our international operations. Thank you.
Speaker Change: Great. Thanks, a lot.
Speaker Change: Okay.
Speaker Change: Thank you I would now like to hand, the conference back over to Michelle Qi for any closing remarks.
Michelle Qi: Thank you.
Michelle Qi: And everyone for joining us today, you can find the transcript and webcast of today's call on Investor <unk> Com. We look forward to speaking with you on our second quarter of 2024 earnings call. Thank you and have a good day. Thank you very much. Thank you.
Speaker Change #100: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change #100: Yeah.
Speaker Change #100: Okay.
Speaker Change #100: Hmm.
Speaker Change #100: [music].
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Speaker Change #100: [music].
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Speaker Change #100: [music].
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Speaker Change #100: [music].
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Speaker Change #100: [music].
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Speaker Change #100: Yes.
Speaker Change #100: Okay.
Speaker Change #100: [music].
Speaker Change #100: [music].
Speaker Change #101: Good day, and thank you for standing by and welcome to the trip Dot Com Group 2020 for Q1 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need a press star one on your telephone you will then hear an automated message advisor.
Cindy: And looking ahead, our margin expansion will primarily stem from operational scalability and improved sales marketing efficiency. However, this may be partly offset by additional expenses associated with expanding our international operations. Thank you. Great, thanks a lot.
Speaker Change #102: No. Your hand is raised to withdraw your question. Please press star one again, please be advised that today's conference is being recorded I would now like to hand, the conference over to himself G head of Investor Relations. Please go ahead.
Michelle Qi: Thank you. I would now like to hand the conference back over to Michelle Qi for any closing remarks. Thank you. Thanks, everyone, for joining us today. You can find the transcript and a webcast of today's call on investors.trip.com. We look forward to speaking with you on our second quarter 2024 earnings call. Thank you, and have a good day.
Operator: Thank you very much. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Thank you for watching!
Speaker Change #103: Thank you. Thank you everyone. Good morning, welcome to Bill Com's first quarter of 'twenty 'twenty four 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. Cindy.
Speaker Change #103: One chief Financial Officer.
Speaker Change #104: During this call we will discuss our future outlook and performance, which are forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995.
Speaker Change #104: Forward looking statements involve inherent risks and uncertainties.
Speaker Change #104: As such our results may be materially different from the views expressed today.
Speaker Change #104: Number of potential risks and uncertainties are outlined in chip dotcom group's public filings with the Securities and Exchange Commission to Bill Com group's does not undertake any obligation to update any forward looking statements, except as required under applicable law.
Speaker Change #105: James Jane and Cindy will share in our strategy and business updates operating highlights and financial performance for the first quarter of 2024 as well as the color for the second quarter of 2024.
Speaker Change #106: After the prepared remarks, we will have a Q&A session.
Operator: Good day, and thank you for standing by. Welcome to the Trip.com Group 2024 Q1 Earnings Conference Call. At this time, all participants are in a listen-only mode.
Speaker Change #107: With that I will turn the call over to Jim.
Jim: Yes. Please.
Operator: After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising you that your hand is raised.
Jim: Thank you Michelle.
Jim: Thanks to everyone for joining us on the call today.
Operator: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Michelle Qi, Head of Investor Relations. Please go ahead.
Jim: The Chinese travel market has experienced a remarkable growth over the last year.
Michelle Qi: Thank you. Thank you, everyone. Good morning. Welcome to Trip.com's first quarter of 2024 earnings conference call. Joining me today on the call are Mr. Jianzhang Liang, Executive Chairman of the Board, Ms. Jianzhang, Chief Executive Officer, and Ms. Cindy 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 provisions of the U.S. Private Security Litigation Reform Act of 1995, for looking statements involving interrogatory and uncertainties. As such, our results may be materially different from the views expressed today.
Jim: In 2024 continues to be a strong year for travel.
Michelle Qi: A number of potential risks and uncertainties are outlined in Trip.com Group's public filings with the Security and Exchange Commission. Trip.com Group does not undertake any obligation to update any forward-looking statements, except as required under ethical law. Jainz, Jian, and Cindy will share our strategy and business updates, operating highlights, and financial performance for the first quarter of 2024, as well as our outlook for the second quarter of 2024. After the prepared remarks, we will have a Q&A session. With that, I will turn the call over to James. James, please.
Jim: Positioned at the forefront of this slide.
Jim: The main sector.
James: Thank you, Michelle, and thanks everyone for joining us on the call today. The Chinese travel market has experienced remarkable growth over the last year. 2024 continues to be a strong year for travel; positioned at the forefront of the thriving sector, Trip.com Group has achieved significant advancements across all business lines in this quarter. In 2024, outbound travel will continue to be a pivotal force propelling the Chinese travel market forward. With international flight capacity roughly doubling compared to last year and the visa-free policies further facilitating trips in the APEC region, Taobao travel is becoming increasingly appealing and accessible. Specifically, Taobao hotel and air ticket bookings on our platform fully recovered to 2019 levels during the major holiday period, indicating a strong rebound in demand.
Speaker Change #108: Telkom group as it should.
Jim: <unk>.
Significant advancements across all business lines in this quarter.
Jim: And filled out and hunting for outbound travel continues to be a pivotal force propelling the Chinese travel market forward.
Jim: With international flight capacity, roughly doubling compared to last year and the visa free policies further facilitating trips in the APAC region.
Jim: Outbound travel is becoming increasingly appealing.
Jim: First of all.
Holly: Holly I'll bump hotel and air ticket bookings on our platform fully recovered in 2019 levels during the major holiday periods.
Holly: Getting a strong rebound in demand.
James: In addition to Alban travel, the China domestic power market continued to exhibit strong performance in the first quarter, in response to the growing interest of Chinese travelers in exploring their homeland. We are also catering to the increasing travel demands of the Silver Generation.
In addition to outbound travel.
Holly: China domestic power market and huge exhibited strong performance in the first quarter.
Holly: In response to growing interest of Chinese travelers.
Holly: Exploring their homeland.
Holly: We are also contributing to the increasing demands of silver to generation.
James: This demographic is known for their love of Venetian travel and cultural experiences, as well as their tendency to travel during off-peak seasons, presents a substantial growth opportunity within the domestic lens to address the unique travel preference. We have already... introduced it. The Old Friends Club initiative, which is designed to empower this cohort to fulfill their travel aspirations, also has the potential to bridge the gap between peak and off-peak seasons in China's travel market. On the international front, our global business is experiencing rapid expansion, particularly in the APAC region, with revenue growing at an impressive rate of around 80% year-over-year. Additionally, we have a witness.
Holly: This demographic.
Holly: Their love of our leisure travel and then <unk>.
Holly: Electronic experiences as well as the attendant ctrip travel during off peak seasons.
Holly: <unk>, a substantial growth opportunity within the domestic landscape.
Holly: To address their unique travel preferences.
We have already.
Holly: Introduced.
Holly: The old Friends Club initiative, which is designed to do.
Empower this cohort to fulfill their travel aspirations.
Holly: This initiative also has the potential to bridge the gap between peak and off peak seasons in China travel market.
Holly: On the international front, our global business is experiencing rapid expansion.
Holly: Particularly in the APAC region with revenue growing at an impressive rate of around 80% year over year.
Holly: Additionally, we have witnessed.
James: Significant growth in inbound travel to China, with a remarkable increase of 400% compared to last year, driven by the benefits of visa-free policies. In response to this flourishing trend, we initiated a program in April aimed at providing free city tours to international travelers with layovers exceeding eight hours at Shanghai Putong International Airport. This initiative aims to transform their brief stopovers into mini-vacations, thereby offering new avenues for international travelers to explore
Holly: Significant growth in non travel to China.
Holly: A remarkable increase of over 400%.
Holly: Compared to last year, driven by the benefits of visa policies.
Holly: In response to this flourishing trained reinitiate as a programming April aimed at providing free city tours, So international travelers layovers exceeding eight hours had Shanghai Pudong International Airport.
Holly: This initiative aims to transform their brief stop overs into mini vacations.
Holly: Offering you have revenues for international travelers to explore China.
Holly: Okay.
James: In conclusion, Travel remains a resilient and promising business. There will be great opportunities and possibilities in 2024. As we journey forward, we remain committed to creating value for both customers and shareholders. And we are poised to navigate this evolving landscape and achieve new heights of success. With that, I will turn the call over to Jane for operational highlights. Thank you, James. Good morning, everyone.
Pete: Pete can conclude.
Speaker Change #111: <unk> remains resilient and promising business.
Speaker Change #112: Great opportunities.
Speaker Change #112: Possibilities in 2024.
Speaker Change #112: As we journey forward.
Speaker Change #112: <unk> remains committed to creating value for both customers and shareholders.
Speaker Change #112: And we are poised.
Speaker Change #112: Navigate this evolving landscape and achieved new heights of success.
Speaker Change #113: With that I will turn the call over to Jane for operational highlights.
Jane: As a quick overview, our net revenue in Q1 grew by 29% year-over-year. Our adjusted ethical margin for this quarter was 33%. We're delighted to observe the sustainable growth in carbon momentum in this quarter as it occurs amidst a transition from a pent-up demand to a more normalized demand environment. This shift indicates a maturing market condition, further contributing to our confidence in the sustainability of strong performance for the rest of 2024. Trip.com Group continues to identify opportunities across different market segments. First, for the Chinese domestic market. In Q1, the Chinese domestic market continued to demonstrate robust growth.
Jie Sun: Thank you James good morning, everyone.
Jie Sun: Our net revenue in Q1 grew by <unk>, 9% year over year.
Jie Sun: Adjusted EBITDA margin for this quarter was 33%.
Speaker Change #114: We're delighted to observe.
Speaker Change #114: Sustainable growth in travel momentum in this quarter.
Speaker Change #114: Paris amidst the transition from a pent up demand to a more normalized demand environment.
Speaker Change #114: This shift in the pit.
Speaker Change #114: A maturing market condition for the contributing to our confidence.
Speaker Change #114: With sustainability of strong performance for the rest of 'twenty 'twenty four.
Speaker Change #115: Telkom group continues to identify opportunities across different market segments.
Jane: Our domestic hotel and air ticket bookings increased by 20% to 30% year over year. Notably, Chinese consumers are changing their spending habits, placing great emphasis on quality, experience, and emotional fulfillment. This evolving mindset is prompting travelers to pursue a personalized and high-quality travel experience tailored to their unique preferences, presenting a considerable advantage for the travel industry. Moreover, it is noteworthy that both government attention and social interest in the travel industry have reached unprecedented levels this year. Intensifying marketing efforts in many provinces effectively encourage travelers to explore diverse destinations, largely contributing to the enduring popularity of domestic travel. Second, Huabang Trouble.
Speaker Change #115: First for China domestic market in Q1.
Speaker Change #115: And the domestic market.
Speaker Change #115: To demonstrate robust growth.
Speaker Change #115: Our domestic hotel and air ticket.
Speaker Change #115: Greece to by 20% to 30% year over year.
Speaker Change #116: No what chipotle.
Speaker Change #116: Consumers are changing their spending habits.
Speaker Change #116: Great emphasis on quality experience and emotional fulfillment.
It's evolving mindset is prompting colorless to pursue personal life and high quality public Syrian tailored to their unique preferences presenting a considerable advantage for travel industry.
Speaker Change #116: Moreover, it is noteworthy well both government that pension and social interest in the travel industry has reached unprecedented levels. This year.
Speaker Change #116: Intensified marketing efforts in many provinces actively encourage travelers to explore diverse destinations largely contribute.
Speaker Change #116: Two the enduring popularity of the domestic travel.
Second problem travel.
Jane: The airborne travel market emerged as a driving force behind the travel market recovery last year, and its significance persists into 2024. In Q1, the international flight capacity across the industry rebounded to about 70% of the pre-pandemic level compared to 2019. On our platform, we witnessed urban travel bookings consistently outpacing the market by 20 to 30 percent. During the Chinese New Year period, our album bookings fully recovered to the pre-pandemic 2019
Speaker Change #116: Outbound travel market emerged as a driving force behind the travel market recovery last year and its significance persists into 2024.
Speaker Change #116: In Q1, the international flight capacity across the industry rebounded to about 70% of the pre pandemic.
Speaker Change #116: Level compared to <unk> 19.
Speaker Change #116: Our platform witnessed outbound travel bookings consistently.
Speaker Change #116: Pacey the market by Couldnt take two's, 30% during the Chinese new year period, or all of them bookings fully recovered to the pre pandemic 10019 level.
Jane: On a year-over-year basis, our album, hotel, and air ticket bookings surged by more than 100%. Alongside a notable increase in market sentiment and a notable stabilized supply, a relaxed visa requirement in Southeast Asia has further catalyzed the attention of Chinese outbound travelers. According to the CAAC estimate, China's uptake on travel is anticipated to rebound to 80% of pre-pandemic levels by the end of this year. Foot, Global Market.
Speaker Change #116: The year over year basis, a lot of hotel and air ticket bookings.
Speaker Change #116: I'm more than 100%.
Speaker Change #116: Alongside a notable increase in the market sentiment and a notable site.
Speaker Change #116: For life the supply are relaxed the visa requirement in southeast Asia has spurred the capitalized.
Speaker Change #116: <unk> of Chinese outbound travelers according to C AAC estimate.
Speaker Change #116: And of outbound travel is anticipated to rebound to 80% of pre pandemic levels by the end of this year.
Speaker Change #116: Select global markets.
Jane: If anything, on the Chinese borders, we have diligently strengthened our product and services offerings in the global market, particularly witnessing steady growth in the Asia-Pacific region. Our core competence lies in delivering a superior user experience through our one-stop shopping platform, customer service, and offering strong value for our travelers. Providing top-notch service via our mobile app and customer support, and furnishing comprehensive information to inspire and aid travelers in making informed decisions. We have enhanced collaboration with our global partners to provide a hassle-free travel experience for travelers around the world.
Speaker Change #116: They need to be on China borders, we have diligent really strengthened our product and services offerings and global market, particularly witnessing.
Speaker Change #116: Eddie growth in Asia Pacific region.
Speaker Change #116: Competence lies in deliberate.
Speaker Change #116: Superior user experience through our one stop shopping platform customer service and offering a value.
Speaker Change #116: Strong value for our colorless, providing top notch service via our mobile App and customer support and are furnishing comprehensive information to inspire and eight colorless in making informed the decision we made in collaboration with our global.
Speaker Change #116: Panthers to provide hassle free travel experience for travelers around the world.
Jane: In Q1, the total revenue of our overseas OTA platform, Trip.com, surged by about 80% year-over-year. We remain committed to becoming the go-to platform in Asia within the coming three to five years. Now, I would like to give some strategic highlights in a couple of areas. First, the impact on the market. While our other segments continue to thrive, the growing potential for inbound travel to China is becoming increasingly evident. China has taken proactive steps to bolster its inbound travel sector by implementing visa-free entry for citizens from more than 15 countries, such as France, Germany, Italy, the Netherlands, Spain, Switzerland, etc.
Speaker Change #116: In Q1, the total revenue.
Speaker Change #116: The C O T platform kept all com searched by about 80% year over year, we remain committed.
Speaker Change #116: To becoming.
Speaker Change #116: Both two platform in Asia within the coming three to five years.
Speaker Change #117: Now I would like to give some strategic highlights yeah Paul.
Paul: Areas first Intel in the market.
Y O y.
Paul: The segment continued to strive the growing potential for inbound travel to China is becoming increasingly evident.
Paul: China has taken proactive steps to bolster its inbound cabos sector by implementing visa free entry for citizens for more than 15 countries, such as France, Germany, Italy, Netherlands, Spain, Switzerland et cetera.
Jane: This strategic move has already yielded promising results. Our platform has witnessed a significant 400% year-over-year increase in inbound travel bookings, with a notably surge in arrivals from key markets such as Singapore, which has surged tenfold, followed by Malaysia with nine, Votes increased, and France, Spain, and Thailand each increased by four-fold. The future of inbound travel to China holds immense promise, with visa-free policies and innovative payment solutions positioned further to enhance the appeal of our visits to China.
Speaker Change #119: This strategic move has already yielded promising results our platform has witnessed a significant 400% year over year increase in inbound travel booking.
Speaker Change #119: With notable a search in arrivals from key markets, such as Singapore, which has searched tenfold.
Speaker Change #119: Followed by Malaysia with nine.
Boats increased and friends, Spain, and Thailand, each increased by four votes.
Speaker Change #119: The future of inbound at Carbo to China holds immersed problem it with visa free policies and innovative payment solutions position.
Speaker Change #119: Further to enhance their appeal.
Speaker Change #119: Our visiting to China.
Jane: As we address the pain points and implement solutions, traveling to China will become increasingly enticing, offering exciting opportunities for growth and development for the inbound market. Second, the silver generation, which is the senior population as we explore new market opportunities within China. Another intriguing aspect arises the growing demand from the senior citizens known as the silver generation.
Speaker Change #119: As we address our pinpoint and.
Speaker Change #119: And implement solution traveling to China, we have become increasingly enticing offering exciting opportunities for growth and development for the info on the market.
Speaker Change #119: Second the silver generation, which is the senior.
Speaker Change #119: Population as we explore new market opportunity within China.
Speaker Change #119: And then the in jewelry.
Speaker Change #119: Rice is the growing global demand from the senior citizens no known as a super generation.
Speaker Change #119: While the young generation remains a key demographic for Cabo a rapidly growing senior population is emerging as a significant market segment.
Jane: While the young generation remains a key demographic for trouble, a rapidly growing senior population is emerging as a significant market segment. With longer and healthier lifespans, as well as financial sustainability, many seniors, particularly those in urban areas, are willing to engage in more leisure activities, such as travel. Moreover, today's seniors are more active and adventurous than the preceding generations, demonstrating a key interest in exploring new destinations and immersing themselves in diverse cultures.
Speaker Change #119: With longer and healthier life spend as well as financial.
Speaker Change #119: Many seniors, particularly those in urban areas are willing to invest more leisure activities such as travel.
Speaker Change #119: Moreover, today's seniors are more active and adventurous than the preceding generations.
Speaker Change #119: <unk> a key interest.
Laurie: Laurie new destinations and immersing themselves in <unk>.
Laurie: Reverse cultural.
Laurie: My inclination towards off peak travel season also has a potential to bridge the gap between peak and off peak Colby.
Jane: Our inclination towards off-peak travel seasons also has the potential to bridge the gap between peak and off-peak travel periods in China. According to an estimate from China Tourism Research Institute, by 2025, a number of healthy senior citizens with frequent travel habits and high annual spending is projected to exceed 100 million with an estimated market size of over 1 trillion RMB. It's noteworthy that in 2023, our silver generation cohort accounted for 10% of our total user base. In response to the unique needs and preferences of senior travelers, we introduced the All the Friends Club initiative this year.
Laurie: Curious in China.
Speaker Change #121: According to the estimate from China Tourism Research Institute.
Speaker Change #121: <unk> <unk> five a number of healthy senior citizen with frequent travel habits and higher spending is projected to exceed $100 million with an estimated market size of over one trillion RMB.
Speaker Change #121: It is.
Speaker Change #121: Noteworthy is that in 2023, our silver generation cohort.
Speaker Change #121: For 10% of our total user base.
Speaker Change #121: Respond to the unique needs and preferences of the senior travelers. We introduced all the French club initiative. This year. This program aims to provide the senior colorless with high quality, one stop travel offerings complemented by our exceptional.
Jane: This program aims to provide senior travelers with high-quality one-stop travel offerings complemented by our exceptional customer service and personalized assistance, with an initial launch of over 700 exclusive products covering more than 40 destinations nationwide. Our goal is to collaborate with more partners to develop travel products tailored specifically to preferences of the silver generation, thereby infusing new energy into the domestic travel market.
Speaker Change #121: Customer service and a personalized assistance wisdom to initiate.
Speaker Change #121: Launch of over 700 exclusive products covering more than 40% or 40 destinations national wide. Our goal is to collaborate with more partners to develop trouble products tailored specifically to preference.
Speaker Change #121: It is all silver generation nearby infusing new energy into the domestic travel market.
Speaker Change #121: The young generation, capturing the attention of the young demographic. It's also important for success in travel market.
Jane: Capturing the attention of the young demographic is also important for success in travel markets. In China, entertainment events such as concerts, music festivals, sports occasions, and cultural events hold significant appeal for the youth. This interest has evolved from traditional sightseeing to immersive experiences, blending recreational activities with broader travel adventures. This trend is not only bound by seasons, and young travelers are eager to embark on journeys at any time. Currently, more than 80% of our customers were born after 1980, and more than 50% of our users were born after 1990.
Speaker Change #122: In China Entertainment events, such as concerts music festivals sports patients and a cultural events.
Speaker Change #122: Significant appeal board they use.
Speaker Change #122: This interest has evolved from traditional sightseeing to immersive experiences blending recreational activities with broader travel adventures.
Trend is not only owned by seasons.
Speaker Change #122: And the young travelers are eager to embark on journeys at any time.
Speaker Change #122: Currently more than 80% of our customer.
Speaker Change #122: Customers, who were born after 1980 and more than 50% of our users were born after 1990, we are committed to capturing chip.
Jane: We are committed to capturing trips that, We are committed to curating trips to seamlessly integrate entertainment and cultural exploration by staying attuned to the evolving preference of our young travelers. Our goal is not only to attract them for individual trips but also to forge lasting connections. This strategic approach ensures our continued relevance and growth within the dynamic travel market. Fourth, social responsibility.
Speaker Change #122: That.
Speaker Change #122: We are committed to operating shifts to seamless integrating Tim.
Speaker Change #122: Payment and cultural exploration by staying attuned to the evolving preferences of our young travelers. Our goal is not only to attract them for individuals, but also to forge lasting connection.
This strategic approach, ensuring our continued relevance and growth within the dynamic travel market.
Speaker Change #122: Fourth social responsibility our company continues to thrive and we firmly believe in the importance of giving back to society.
Jane: Our company continues to thrive, and we firmly believe in the importance of giving back to society. Alongside our growth, we actively support and collaborate with various stakeholders in our travel ecosystem, including hotels, airlines, destinations, airports, small agencies, chauffeur drivers, etc. By assisting them in seizing market opportunities and expanding their businesses, we aim to foster a vibrant and interconnected travel community. Furthermore, we are committed to creating more job opportunities and fueling rural development through strategic investment.
Speaker Change #122: Alongside our growth.
Speaker Change #122: We actively support and collaborate with various stakeholders in our travel ecosystem.
Speaker Change #122: Including hotels airlines destinations airports small agencies chauffeured drivers et cetera.
Speaker Change #122: I assisting them in season, the marketing market opportunities and extending nib businesses, we aim to fostering a vibrant and interconnect travel community.
Speaker Change #122: Furthermore, we are committed to.
Speaker Change #122: Creating more job opportunities and fiori rural development through strategic investments.
Jane: For instance, our Trip.com Country Retreats initiative has sparked a significant increase in the number of local lodging facilities, with reservations increasing by 80%. This initiative has not only created 20,000 new jobs but also contributed to an incremental income of 40,000 RMB per person in these specific regions. Through these efforts, we are dedicated to making a positive and long-lasting impact on both the travel industry and the community we serve. In summary, 2024 is shaping up to be a good year for travel, benefiting from a notable shift in consumption patterns.
Speaker Change #122: For instance, our home.
Speaker Change #122: Country retreat initiatives have spot.
Speaker Change #122: A significant increase in number of local lodging facilities.
Speaker Change #122: <unk> increasing by 80%.
Speaker Change #122: This initiative has not only.
Speaker Change #122: Created 20000, new jobs, but also contributed to an incremental income of 40000 RMB per person in this specific region.
Speaker Change #122: Through these efforts, we are dedicated to making a positive and long lasting impact on both.
Speaker Change #122: Of the travel industry.
Speaker Change #122: And the community we serve.
Speaker Change #122: In summary, 2024 is shaping up to be a good year for travel and exiting from notable shifts.
Speaker Change #122: In consumption pattern across all of our business segments, we observed resilience in cargo demand and anticipated.
Jane: Across all of our business segments, we observed resilience in travel demand and anticipated exciting development opportunities on the horizon. Looking forward, we remain optimistic about the market performance in the upcoming quarter and are dedicated to working closely with partners to capitalize on opportunities and continue growth for the travel industry. With that, I will now turn the call over to Cindy. Thanks, Jane. Good morning, everyone.
Speaker Change #122: Development opportunities on the horizon looking forward, we remain optimistic about the market performance in the upcoming quarter and dedicated to working closely with partners to capitalize on the opportunity and continue.
The growth for the travel industry.
Speaker Change #123: With that I will now.
Now ill turn the call over to Cindy.
Cindy: For the first quarter of 2024, Trip.com Group reported a net revenue of RMB11.9 billion, representing a 29% increase from the same period last year and a 15% increase from the previous quarter, primarily due to the strong recovery in the travel market. Accommodation reservation revenue for the first quarter was RMB 4.5 billion, representing a 29% increase year over year and a 15% increase quarter over quarter. Domestic and outbound hotels have seen robust growth and outpaced the industry. Transportation ticketing revenue for the first quarter was RMB5 billion, representing a 20% increase year-over-year and a 22% increase quarter-over-quarter.
Michelle Qi: Thanks, James Good morning, everyone for the first quarter of 2020 for trip Com Group reported a net revenue of RMB 11, 9 billion, representing a 29% increase from the same period last year and a 15% increase from the previous quarter.
Michelle Qi: Primarily due to strong recovery in the travel market.
Michelle Qi: Accommodation reservation revenue for the first quarter was RMB, four 5 billion, representing a 29% increase year over year, and a 15% increase quarter over quarter domestic and outbound hotel has seen robust growth and outpaced in.
Michelle Qi: History.
Michelle Qi: Transportation ticketing revenue for the first quarter was RMB 5 billion, representing a 20% increase year over year, and a 22% increase quarter over quarter.
Cindy: This is mainly due to the robust recovery of outbound air and strong growth in domestic and global air business. Package tour revenue for the first quarter was RMB883 million, representing a 129% increase year-over-year and a 25% increase quarter-over-quarter. Domestic package tour revenue has already surpassed the 2019 level. The year-over-year growth was mainly driven by outbound revenue, which increased by multifold. Corporate travel revenue for the first quarter was RMB511 million, representing a 15% increase year-over-year and a 19% decrease quarter-over-quarter. The sequential decrease was in line with normal seasonality.
This is mainly due to robust recovery of outbound air and strong growth in domestic and global air business.
Michelle Qi: Packaged tour revenue for the first quarter was RMB $883 million, representing a 129% increase year over year, and a 25% increase quarter over quarter.
Michelle Qi: Domestic package tour has already surpassed the 2019 level of year over year growth was mainly driven by outbound revenue, which increased by multifold.
Michelle Qi: Corporate travel revenue for the first quarter was RMB $511 million.
Michelle Qi: Representing a 15% increase year over year, and a 19% decrease quarter over quarter. The sequential decrease was in line with normal seasonality.
Cindy: Excluding share-based compensation charges, our total adjusted operating expenses were 6% higher than the previous quarter and was 24% higher than the same period last year. Adjusted product development expenses for the first quarter increased by 7% from the previous quarter. Adjusted DNA expenses for the first quarter increased by 9% from the previous quarter.
Michelle Qi: Excluding share based compensation charges, our total adjusted operating expenses was 6% higher than the previous quarter.
Michelle Qi: <unk> was 24% higher than the same period last year.
Michelle Qi: Adjusted product development expenses for the first quarter increased by 7% from the previous quarter.
Michelle Qi: Adjusted G&A expenses for the first quarter increased by 9% from the previous quarter.
Cindy: This is mainly due to an increase in personnel-related expenses. Adjusted sales and marketing expenses for the first quarter decreased by 1% from the previous quarter and increased by 32% from the same period last year. A year-over-year increase was primarily due to increased marketing promotion activities in line with business growth. Adjusted EBITDA margin was 33% for the first quarter, compared with 31% in the same period last year and 28% in the previous quarter. Diluted earnings per ordinary share and per ADF were RMB6.8 billion.
Michelle Qi: This is mainly due to increase in personnel related expenses.
Michelle Qi: Adjusted sales.
Michelle Qi: Sales and marketing expenses for the first quarter decreased by 1% from the previous quarter and increased by 32% from the same period last year.
The year over year increase was mainly was primarily due to increased marketing promotion activities in line with business growth.
Michelle Qi: Adjusted EBITDA was RMB 4 billion for the first quarter comp.
Michelle Qi: Compared with RMB, two 8 billion in the same period last year and RMB, two 9 billion in the previous quarter.
Michelle Qi: Adjusted EBITDA margin was 33% for the first quarter compared with 31% in the same period last year and 28% in the previous quarter.
Diluted earnings per ordinary share and per ads were RMB six point.
Cindy: 6.38 or US dollar 88 cents for the first quarter of 2024. Including share-based compensation charges and fair value changes of equity security investments and exchangeable senior notes, non-cash diluted earnings per ordinary share and per ADS were RMB8.06 or US$0.83 for the first quarter.
Michelle Qi: Six points 38, our U S.
Michelle Qi: Dollars 88.
Michelle Qi: For the first quarter of 2024.
Michelle Qi: Excluding share based compensation charges and fair value changes of equity security investments are exchangeable senior notes non-GAAP diluted earnings per ordinary share and per ads were RMB.
Michelle Qi: <unk> six <unk>.
Michelle Qi: <unk> dollars 83 for the first quarter.
Cindy: As of March 31st, 2024, a balance of cash and cash equivalents, Restricted cash, short-term investment, held to maturity time deposit, and financial products was RMB 81.9 billion, or U.S. dollar 11.3 billion. The strong recovery in the first quarter of 2024 across market segments is encouraging. As we venture into the second quarter, we are delighted to see persistent strong demand on our platform. This demand continues to drive substantial growth across travel segments, even in the face of challenging comparisons.
Michelle Qi: As of March 31, 'twenty 'twenty four.
<unk> cash and cash equivalents.
Michelle Qi: Restricted cash short term investments held to maturity time deposits and financial products was RMB $81 9 billion.
Michelle Qi: U S dollar 11 3 billion.
Michelle Qi: The strong recovery in the first quarter of 2024 across market segment is encouraging.
Michelle Qi: As we venture into the second quarter, we are delighted to see persistent strong demand.
Michelle Qi: Our platform.
Michelle Qi: This demand continues to drive substantial growth across travel segments.
Michelle Qi: Even in the face of challenging comparisons.
Cindy: We have noticed a decline in hotel and air prices, which could potentially affect our revenue growth. Nevertheless, we anticipate this will have a limited impact on our net earnings due to our strong management of operational efficiency.
Michelle Qi: We have noticed a decline in hotel and air prices.
Michelle Qi: Which could potentially affect our revenue growth.
Nevertheless, we anticipate this will have a limited impact on our net earnings due to our strong management operational efficiency.
Operator: With that, Operator, please open the line for questions. Thank you. As a reminder, to ask a question at this time, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. We ask that you please limit yourself to one question.
With that operator, please open the line for questions.
Speaker Change #124: Thank you.
Speaker Change #125: As a reminder to ask a question at this time. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, we ask that you. Please limit yourself to one question one moment, while we compile our Q&A roster.
Operator: One moment while we compile our Q&A roster. And our first question is going to come from the line of Brian Gong with Citi. Your line is open. Please go ahead. Thank you. Good morning, James, Jane, Cindy, and Michelle.
Speaker Change #126: And our first question is going to come from the line of Brian <unk> with Citi. Your line is open. Please go ahead.
Brian: Thank you good morning, James Jane Cindy and Michelle Thanks for taking my question on the congratulations on solid results.
Brian Gong: Thanks for taking my question and congratulations on solid results. So, my question is regarding our group has... Yeah, our group has successfully captured the pent-up demand and continues to demonstrate strong growth in the first quarter for the domestic, autobahn, and international platform or business line. So looking ahead, what growth drivers or new initiatives should the investor pay attention to in management's view? Thank you. Thank you very much for the question. China, we will focus on steadily expanding our user base in the second and third tier cities. Improving user acquisition and cross-selling ratios.
Brian: So my question is regarding our group.
Speaker Change #128: Yes, our group has successfully captured as a pent up demand and a continuing to demonstrate strong growth in the first quarter for domestic and international platform. Our business a lot. So looking ahead, what growth drivers or new initiatives the western pay attention to the management's view. Thank you.
Speaker Change #129: Thank you very much for the question.
Speaker Change #130: In China, we will focus on.
Speaker Change #131: Expanding our user base in the second and third tier cities.
Speaker Change #132: User acquisition and cross selling ratios.
James: Additionally, we expect to benefit from the growth of our travel business in the upcoming years on the international front. Trip.com will maintain its focus in Asia and strive to become a regional and a global leading player, and four new initiatives. We are actively pursuing opportunities in China's inbound travel market, which has a great market size at this time. Multi-Trillion RMB Level. Domestically, we are introducing tailor-made products for the silver generation, which represents another trillion RMB market opportunity. See you later.
Speaker Change #132: Finally, we expect to benefit from the growth of outbound travel.
Speaker Change #132: In years.
Speaker Change #132: On the international front.
Speaker Change #133: Good luck, all while maintaining its focusing Asia.
Speaker Change #133: Drive to become a regional and a global leading player.
Speaker Change #133: As for new initiatives.
Speaker Change #133: We're actually really pursuing opportunities in China's inbound travel market, which has a great market size.
Speaker Change #133: No.
Speaker Change #133: RMB level.
Speaker Change #133: Domestically, we are introducing tailor made products for the silver generation.
Speaker Change #133: Another <unk> <unk>.
Speaker Change #133: RMB market opportunity.
Speaker Change #133: Furthermore.
James: We are introducing new product combinations such as entertainment activities plus travel to cater to the evolving market demands of the younger generation. We remain dedicated to investing in our content strategy and AI development for our one-stop business model. These investments aim to enhance users' fitness.
Speaker Change #133: Introducing new product combinations, such as entertainment activities.
Speaker Change #133: So kudos to the evolving market demands of the younger generation.
Speaker Change #133: We remain dedicated to investing.
Speaker Change #133: So our.
Speaker Change #133: Our strategy.
Speaker Change #133: Element.
Speaker Change #133: And to grow.
Speaker Change #133: One stop business model.
Speaker Change #133: So you see investments.
Speaker Change #133: Yes.
Operator: Engagement and Operating Exchange Efficiency. Thank you. Thank you. Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Thomas Chong with Jeffries.
Speaker Change #133: Engagement operating machine efficiency.
Speaker Change #134: Thank you.
Speaker Change #134: Okay.
Thank you.
Speaker Change #134: Okay.
Speaker Change #134: Thank you and one moment as we move on to our next question.
And our next question is going to come from the line of Thomas Chong with Jefferies. Your line is open. Please go ahead.
Thomas Chong: Your line is open. Please go ahead. Hi, good morning.
Operator: Thanks, management, for taking my question. Recent news headlines and industry data suggest a notable decrease in hotel ADR and slowdown of hotel web park. Have you also observed this trend? Does this indicate a weakening or downgrade in consumer spending?
Thomas Chong: Hi, Good morning, Thanks management for taking my questions are reasons, new cat lines of industry data suggests bookable decrease in holding our ABL and slow down the hall.
Speaker Change #134: Desktop.
Speaker Change #136: We also observe these trends are positive, indicating a return in one downgrade in consumer spending. Additionally, the price trend for outbound hotel.
Thomas Chong: Additionally, what are the price trends for outbound hotels? Thank you. Thank you, Thomas.
Speaker Change #135: Thank you.
Cindy: Yeah, we also observed a decline in domestic ADR in recent months, which was largely influenced by the shift in travel preference towards outbound destinations and as well as the lower tier cities and the increased availability at the same time and the increased availability of hotels and flights. Firstly, we think outbound travel has notably increased this year, attracting a lot of mid- to high-end travelers away from our domestic options. Secondly, the lower-tier cities now offer excellent value as transportation and accommodation infrastructure have significantly improved over the past few years. Additionally, the increase in hotel and air supply has put pressure on short-term prices across the board, particularly when compared to the high benchmark established during last year's peak season.
Thomas: Thank you Thomas Yeah, we also observed a decline in domestic ADR in recent months.
Thomas: Which was largely influenced by the shift in travel preference towards outbound destinations and as well as the lower tier cities and the increased availability.
Thomas: At the same time and the increased availability.
Thomas: All of the hotels and flights.
Thomas: Firstly, we think the outbound travel has notably increased this year, attracting a lot of our mid to high end travelers away from our domestic options secondly, a lower tier cities now offer excellent value as transportation and accommodation in.
Thomas: Restructure have significantly improved over the past few years.
Thomas: Finally, the increase in hotel Air supply has put pressure on short term prices across the board, particularly when compared to the high benchmark established during last year's peak seasons.
Cindy: Overall, we believe the expansion and diversity of travel supplier capacity will greatly contribute to the overall growth and stability of OTAs as a distributor, as well as the travel industry as a whole. With regard to Albon, the Albon air ticket price has been normalizing as flight capacity continues to recover. And the current level stays around about 115% of the 2019th level compared to over 130% of the 2019th level during the same period last year. The average Albon hotel price has been quite stable compared with last year.
Thomas: Overall, we believe the fast expansion and diversity of travel supply of capacity will greatly contribute to the overall growth and the ability of.
Thomas: Ah of.
Otas asset distributor as well as the travel industry at home.
Thomas: With regard to the outbound.
Thomas: Our air ticket price has been normalizing as black capacity continues to recover and the current level stays around.
Thomas: About 115% of the 2019 level compared to over 130% of the 2019 level. During the same period last year average outbound hotel price test.
Thomas: And quite stable compared with last year. Thank you.
Thomas: Thank you.
Operator: Thank you. Thank you. Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Joyce Ju with Bank of America. Your line is open. Please go ahead. Good morning, James, Jane, Cindy, and Michelle.
Speaker Change #138: Thank you and one moment as we move on to our next question.
Speaker Change #139: And our next question is going to come from the line of Joyce Ju with Bank of America. Your line is open. Please go ahead.
Lixin Ju: Good morning, James Jane Cindy and Michelle Congrats on another set of strong set of results and thanks for taking my question.
Lixin Ju: Congratulations on another set of strong results, and thanks for taking my question. I would like to ask management if they could elaborate more on the company's recent business performance, especially color sales during and following the Labor Day holiday. As we are now moving into summer, could management also share your expectations for business momentum for the third quarter and beyond? Many thanks. Sure. Our domestic and outbound travel bookings reached a new high, a new high record during the recent Labor Day holiday. Specifically, outbound air and hotel bookings surpassed 120% of the 2019 level.
Lixin Ju: I would like to ask if management could you elaborate more on the company's recent.
Lixin Ju: Business performance, especially colors during and following the labor day holiday.
Speaker Change #140: As we are now moving into summer could management also share your expectations on business momentum for the third quarter MBR. Many thanks.
Speaker Change #140: Sure.
Speaker Change #141: Our domestic and outbound travel bookings reached a new high New high records during the recent labor day holiday.
Specifically Alba Air and hotel bookings surpassed the 120% of the 2019 level.
Lixin Ju: This achievement is particularly significant, considering the tough comparison to the same period last year, which was the first major holiday with strong pent-up demand for leisure travel, with regard to the quarter to date. The domestic travel bookings achieved double-digit growth, with hotels leading the search. Alban Hotel and Air bookings have fully rebounded to the pre-pandemic level.
Speaker Change #141: This achievement is particularly significant considering the tough comparison to the same period last year, which was the first major holidays with strong pent up demand for the leisure travelers.
Speaker Change #141: With regard to the quarter to eight.
Speaker Change #141: The domestic travel bookings achieved the double digit growth with hotels, leading the search outbound hotel and air bookings have fully rebounded to the pre pandemic level.
Jain: Such robust growth has significantly outperformed the market in terms of booking volume. For instance, the market level domestic hotel occupancy rate and flight passenger volume were roughly on par with 2023, while outbound flight capacity was slightly over 70% of the 2019 level. In terms of average pricing, our numbers were generally in line with the market. However, as I explained before, recently, we noticed the hotel ADR and average air ticket price both saw a year-over-year decrease.
Speaker Change #141: Such robust growth has significantly outperformed the market in terms of booking volumes for.
Speaker Change #141: For instance, the market level domestic hotel occupancy rates and flight passenger volumes were roughly on par with 2023.
Speaker Change #141: Our outbound flight capacity was slightly over 70% of the 2019 level.
Speaker Change #141: In terms of average pricing our numbers were generally in line with the market.
Speaker Change #141: S I S.
Speaker Change #141: As I explained before the recently, we noticed hotel ADR and average ticket price have both seen a year over year.
Speaker Change #141: Decrease.
Jain: Trip.com has maintained robust growth in the mid to high double digit percentage range, and inbound travel to China has also experienced a multi-fold increase. Now moving to the summer part, it's still quite early to observe the early bookings towards the summer given the short booking windows in China. However, we remain confident about the travel momentum in the summer holidays and beyond. In particular, we anticipate significant growth in the outbound travel sector, driven by the ongoing recovery of flight capacity as well as the resolution of the visa backlog with regard to the global market.
Speaker Change #141: Carl has maintained robust growth in the mid to high double digit percentage range.
And the inbound travel to China.
Speaker Change #141: <unk> also experienced a multi fold increase.
Speaker Change #141: Now moving to the summer parked.
Speaker Change #141: It's still quite early to observe the early booking towards the summer given the short booking windows in China. However, we remain confident about the travel momentum in the summer holiday and beyond.
Speaker Change #141: In particular, we anticipate significant growth in the outbound travel sector, driven by ongoing recovery of flight capacity as well as the resolution of the visa backlogs.
Speaker Change #141: With regard to the global markets.
Jain: We anticipate Trip.com to continue its robust growth, while Skyscanner and other overseas brands are also expected to maintain a very healthy growth trajectory. Thank you. Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of James Lee with Mizuho.
Speaker Change #141: We anticipate triple Crown to continue its robust growth.
Speaker Change #141: Skyscanner and other overseas rents are also expected to maintain a very healthy growth trajectory.
Speaker Change #141: <unk>.
Speaker Change #142: Thank you and one moment as we move on to our next question.
Speaker Change #143: And our next question is going to come from the line of James Lee with Mizuho. Your line is open. Please go ahead.
Operator: Your line is open. Please go ahead. Okay, great.
James Lee: Also, let me add to my congratulations to you on the quarter as well. And let me follow up maybe a little bit on an outbound question. I think, Jain, you spoke about outbound getting back to 80% of FY19 by year-end. I was wondering what factors we should think about that would either speed up or slow down that process.
James Lee: Okay. Great also led me to my congratulations to you on the quarter as well and let me follow up maybe a lift at all outbound question.
Jim: Jim you spoke about outbound getting back to 80%.
Speaker Change #144: 19 by year end I was wondering what factors that we should think about that.
Speaker Change #145: Either speed up or slow down that process and also in terms of destination I guess, where do you see most of the recovery.
James Lee: And also, in terms of destination, I guess, where do you see most of the recovery? You know, especially I think a lot of investors are interested in finding out recovery in the West, you know, especially in the Western part of the world, especially Europe. Sure. Thank you very much for your question, James. We see a strong rebound in outbound business. The estimate is that by the end of the year, the industry should recover to 80 percent compared to its pre-pandemic level.
Speaker Change #145: Especially I think a lot of investors are interested in finding out recovery in the western.
Speaker Change #145: Especially in the western part of the World Western European market. Thanks.
Sure.
Speaker Change #146: Thank you very much for your question James.
Speaker Change #147: We see a strong rebound in outbound business.
Speaker Change #148: Hi, the estimate is by the end of the year the industry should recover to 80% compared to pre pandemic level, our company can outpace the market by about 20% to 30%.
Jain: Our company can outpace the market by about 20 to 30 percent. There are a couple of major factors impacting the outbound business. The first one is visa applications. Many countries have offered free visas to Chinese travelers, such as Singapore, Malaysia, Thailand, and the GCC countries, such as UAE, Qatar, and also Saudi.
Jain: So we have seen a very strong pickup for the countries which offer free visas. The second factor is flight capacity. So we have seen a very strong rebound in flight capacity into Singapore, Malaysia, Thailand, and the GCC countries. So we sent a lot of people to these countries. And during the Chinese New Year, the top three long-haul travel destinations are Australia, New Zealand, and South Africa.
Speaker Change #148: There are a couple of major factors impacting our business. The first one is the visa application. Many countries have offered free visa for Chinese travelers, such as Singapore, Malaysia, Thailand, and the GCC countries, such as U a E pas.
Speaker Change #148: And.
Speaker Change #148: And also <unk>.
Speaker Change #148: So we have seen a very strong pickup for the countries, which offer free visas.
Speaker Change #148: The factors are the flight capacity.
Speaker Change #148: So we have see a very strong rebound in the flight capacity into Singapore, Malaysia, Singapore.
Speaker Change #148: Thailand, and the GCC country. So we sent a lot of people to these countries and during the Chinese new year long haul travel destinations.
Speaker Change #148: Top three our Australia, New Zealand and South Africa.
Speaker Change #148: So we have to see a very strong demand and interest.
Jain: So we have seen very strong demand and interest when customers have free visas, when we see a recovery in flight capacity, and also when customers have time and availability. In the summer, during the summer break, we are excited that our customers will have a longer period to take their children to travel around the world. And countries which have exhibited their hospitality will be able to capitalize on these upcoming trends for the rebound recovery. However, certain countries are still lagging behind.
Speaker Change #148: <unk> customers have free visa when we see a recovery in the flight capacity and also when customers have.
Time and availability.
Speaker Change #148: In the summer during the summer break.
Speaker Change #148: Excited that our customers will have.
Speaker Change #148: Longer periods could take their token to travel around the world in countries, which have exhibited.
Speaker Change #148: Hospitality will be able to capitalize on this upcoming.
Speaker Change #149: <unk> fourth album the recovery.
Speaker Change #149: However, certain countries still.
Jain: The flight capacity is yet to recover, so we are eager to work with these regions to make sure that these applications are being processed timely, and also that flight capacity is being added before the summer holiday comes. Thank you.
Speaker Change #149: In behind.
Speaker Change #149: <unk> capacity is yet to recover so we are eager.
Speaker Change #149: To work with these regions to make sure that these applications are being processed.
Speaker Change #150: Im late.
Speaker Change #150: So the capacity is being added before the summer holiday comps. Thank you.
Speaker Change #151: We're a good group.
Operator: Thank you. Thank you. And one moment, as we move on to our next question.
Thank you thank.
Speaker Change #152: Thank you and one moment as we move on to our next question.
Operator: And our next question comes from the line of Alex Poon with Morgan Stanley. Your line is open. Please go ahead.
Speaker Change #153: And our next question comes from the line of Alex <unk> with Morgan Stanley. Your line is open. Please go ahead.
Alex Poon: Thank you and congratulations to management on very strong results. My question is regarding the opportunity of the Chinese inbound travel market and how Trip.com plans to capture this market, and additionally, can you talk about the contribution of inbound travel to Trip.com's business? Thank you very much. Sure.
Speaker Change #154: Thank you and congratulation management on very strong results.
Alex Poon: My question is regarding the opportunity of China, inbound travel market and how cheap dot com plans to capture this market.
Alex Poon: Additionally, can you talk about the contribution of inbound travel to trip dotcom business. Thank you very much.
Jain: Inbound business is a new opportunity for China's travel industry. China can offer so much to the world. It has a very rich history. It also has beautiful infrastructure. The high-speed railway station connects the countries, and every province is very unique.
Alex Poon: Sure.
Speaker Change #156: Inbound business is.
New opportunity for China travel industry, China 10 offers so much to the world. It has very rich history and also have used for infrastructure high speed railway station connect to countries and every province is very unique.
Speaker Change #156: So we're very excited to invite our friends over the world to come and visit China.
Jain: So we are very excited to invite our friends all over the world to come and visit China. There are a lot of good offers being extended. First of all, free visas have been extended to many countries, such as France, Germany, Netherlands, Italy, Spain, Switzerland, Ireland, Singapore, Malaysia, Thailand, etc.
There are a lot of.
Speaker Change #156: Good offering be extended further.
Speaker Change #156: First of all free visa has been extended to many countries, such as France, Germany, Netherlands, Italy, Spain, Switzerland, Ireland, Singapore, Malaysia, Thailand, et cetera, and going forward as.
Jain: And going forward, as we move forward, we hope there will be more opportunities to invite people around the world to come to China. Secondly, for Trip.com, we also offer a one-stop shopping platform. Our inventory within China is excellent.
Speaker Change #156: As we move forward, we hope there will be more opportunities to invite people around the world to come to China. Secondly for trip Com. We also offer one stop shopping platform our inventory in China is excellent.
Jain: We can offer tickets, flight tickets, and high-speed railway tickets. We offer very nice tour packages. We also offer free one-day tours for customers who transit in Shanghai.
Speaker Change #156: Can offer.
Speaker Change #156: Tickets flight ticket high speed railway tickets.
Speaker Change #156: Very nice tour packages, we offer.
Speaker Change #156: Also offer a free one day tour for customers, who transit in Shanghai.
Jain: So hopefully, through the concerted efforts between Trip.com and the local community, we'll be able to show hospitality to our global travelers. And thirdly, for Trip.com, we also offer more than 30 languages on our APP. More than 30 languages in our call center around the world, offering 24 hours a day, 7 days a week services. If a customer needs to reach our customer service within 30 seconds, we'll be able to pick up the phone address in the language that is familiar to our customers.
Speaker Change #156: Hopefully through the concerted efforts between chip Dot com and local community will be able to show the hospitality to our global travelers.
Speaker Change #156: And thirdly for trip Com, we also offer more than 30 languages, our ATP more than 30 languages in our call center around the world.
Speaker Change #156: <unk> 24 seven services.
Speaker Change #156: If the customer needs to reach our customer service.
Speaker Change #156: We think <unk> will be able to pick up the full address in the language that is familiar to our customers.
Jain: So we are very excited for this opportunity to exhibit the beautiful history, hospitality, and variety of the food to our global friends. So hopefully, inbound travel will become a significant contribution to our business going forward. And yeah, and the contribution of inbound travel to the Trip.com business has improved from the team's level to over 20% of the overall revenues in the first quarter of 2024. Thank you. Thank you, Jane. Thank you, Cindy. Xiexie.
Speaker Change #156: We are very excited for this opportunity to exhibit the beauty for history.
Speaker Change #156: The hospitality.
Speaker Change #156: Variety of the food.
Speaker Change #156: Two our global friends, so hopefully inbound travel web become.
Speaker Change #156: Sick of it significant contribution to our business going forward.
Speaker Change #157: Yes, and the contribution of the inbound travel to the Triple call business has improved from the teens level to over 20%.
Speaker Change #157: Of the overall revenues in the first quarter of 2024. Thank you.
Speaker Change #158: Thank you Jamie Thank you Sandy.
Speaker Change #159: Thank you.
Operator: Thank you. Thank you. And one moment, as we move on to our next question.
Speaker Change #160: Thank you and one moment as we move on to our next question.
Operator: And our next question comes from the line of Jiong Shao with Barclays. Your line is open. Please go ahead.
Speaker Change #161: And our next question comes from the line of <unk> with Barclays. Your line is open. Please go ahead.
Jiong Shao: Thank you very much for taking my question. I think you just mentioned that Trip.com's contribution is now over 20% of the revenue. I just want to follow up on that.
Speaker Change #162: Thank you very much for taking my question.
I think you just mentioned.
Speaker Change #162: That.
Speaker Change #163: Chip Dot Com contribution is now over 20% of your revenue.
Just wanted to follow up on that I was hoping you could elaborate a bit on your trip dotcom business could you talk about.
Jain: I was hoping you could elaborate a bit on your Trip.com business. Could you talk about, for example, the regional breakdown or product line breakdown for that business in terms of the take rate and average room rate for that pure international Trip.com business? As you compete in Southeast Asia and in other parts of the world, clearly, there are already existing players. Could you talk about what you bring as a differentiation to obviously grow your market share? What are you doing differently or better than some of the existing players?
Speaker Change #163: For example, the regional breakdown or product line broke down for that business and in terms of the take rate.
Speaker Change #163: And the average room rate for that pure international trip Dotcom business and as you compete.
Speaker Change #163: In southeast Asia and in other parts of the World.
Speaker Change #163: Clearly the already existing players could you talk about sort of what you, bringing as a differentiation to too obviously.
Grow grow your your market share what are you doing differently or better than some of the existing players.
Jain: Thank you so much. Thank you. Firstly, a clarification on the contribution.
So much.
Jain: Actually, a 20% contribution actually is the inbound contribution to the overall Trip.com business rather than the Trip.com revenue contribution to the total group, which is around 10% in the first quarter of 2024, with over 70% or around 70% actually coming from the Asian market.
Speaker Change #164: Thank you firstly, just firstly a clarification on the contribution.
Speaker Change #164: Ashley.
Speaker Change #165: Fusion, a 20% contribution actually is the inbounds.
Speaker Change #165: Contribution to the overall chip I'll call business, rather than triple alcohol revenue contribution to the total group.
Speaker Change #165: With regard to the trip Com revenue.
Speaker Change #165: <unk>.
Speaker Change #165: Contribution to the total growth which is around 10.
Speaker Change #165: 10% in.
Speaker Change #165: In the first quarter of 'twenty 'twenty.
Speaker Change #165: 24.
Speaker Change #165: We.
Speaker Change #165: In which over 70% or around 70% Ashley coming from the Asia markets.
Speaker Change #165: And with an increased cross selling ratios are mobile hotel bookings now.
Jain: And with increased cross-selling ratios, our mobile hotel bookings now contribute more than 35 percent of the total revenues of the Trip.com business. And the take rates for the hotel and air reservations on Trip.com are similar to those of our Albon business. While we have recently turned profitable on the contribution margins for the Trip.com business, and we expect Trip.com to achieve a healthy margin as its scale further increases in the longer term period.
Speaker Change #165: Hotel bookings now contribute more than 35% of the total revenues of the trip com business and the take rates for the hotel and the air reservations on the trip I'll call are similar to those.
Of our outbound business.
Speaker Change #165: While we have recently turned profitable on the contribution margins for the trip Com business and we expected to achieve a healthy margin.
Speaker Change #165: As at scale.
Speaker Change #165: Further increase in the longer term period.
Speaker Change #165:
Jain: With regard to the co-competence of our Trip.com business, yes, there are a lot of players in the international market. For example, Trip.com's global mobile app, OrderShare, increased to around 65% in the first quarter. In several key markets, the number has reached over 75%.
Speaker Change #165: With regard to the.
Our core competence of our trip Dot com business.
Speaker Change #166: Yes, there is a lot of that.
Speaker Change #166: Players in.
Speaker Change #166: In the in the in the international market as well as in the Asia market. However.
Speaker Change #166: The call has allowed us a unique selling point.
Speaker Change #166: For our users firstly triple calls mobile App offers a smooth and user friendly search and booking experience and complement it come from.
Jain: Secondly, we have a comprehensive one-stop model that caters to nearly all travel needs, which is particularly appealing to mobile app users. And our extensive experience in China further enhances our expertise in these areas. Third, we provide 24 hours and 7 days customer service via phone calls, online chats, and all emails, ensuring our users have reliable support for any issues that they encounter. Fourth, Trip.com offers highly competitive offerings, leveraging the group's strong market presence and well-established supplier relationships.
Speaker Change #166: We ended by the AI tools for the personalized recommendations and special offers which further enhancing our user engagement. For example, the triple caused global mobile App other share has increased to around 65% in the first quarter.
Speaker Change #166: With several key markets the number.
Has reached over 75%.
Speaker Change #166: Secondly, we have a comprehensive one stop model caters to nearly of nearly all travel needs, which is particularly appealing to mobile app users and our extensive experience in China further enhance our expertise in these areas.
Speaker Change #166: Third we provide 24 hours seven days customer service.
Speaker Change #166: The full cost all I chat or E mails, ensuring our users have reliable support for any issues that the encounters.
Fourth the triple call offer highly competitive offerings, leveraging the group's strong market presence and well established supplier relationship.
Jain: Last but not least, with particularly strong product and service in China, a surge in inbound travel presents an excellent opportunity for our Trip.com business to capitalize on its unique advantages. Thank you. Thank you very much. Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Alex Yao from J.P. Morgan. Your line is open. Please go ahead.
Speaker Change #166: Last but not least with particularly strong product and service in China. The search in inbound travel presents an excellent opportunity for our trip com business to capitalize on its unique advantages. Thank.
Speaker Change #166: Thank you.
Speaker Change #166: Thank you.
Speaker Change #167: Thank you very much.
Speaker Change #168: Thank you and one moment as we move on to our next question.
Speaker Change #169: And our next question is going to come from the line of Alex Yao with Jpmorgan. Your line is open. Please go ahead.
Operator: Good morning, management, and congratulations on a solid quarter. So, Trip.com has been growing very rapidly in the past few years. Can you talk about Trip.com's addressable market size and the competitive landscape in Asia? Thank you. Sure. When we look at the market size... Outside of China, the total Asia market is equivalent to 1.5 times China's market, so it's quite significant.
Speaker Change #170: Good morning management.
Congratulations on the solid quarter.
So trip Docomo has been growing very rapidly in the past few years can you poker barrel.
Alex C. Yao: The addressable market size and the competitive landscape.
Speaker Change #171: Thank you.
Alex C. Yao: Sure.
Speaker Change #172: When we look at the market size.
Speaker Change #173: Outside of China. The total Asia is equivalent to one five times China's market. So it's quite significant.
Alex C. Yao: Secondly, we feel we have a couple of advantages. First of all, we offer a one-stop shopping platform, which is really convenient for our consumers. Secondly, our users' experience on mobile is excellent.
Secondly, we feel we have a couple of advantages first of all we offer one stop shopping platform, which is really convenient for our consumers secondly, our users' experience on mobile is excellent in China more than 90% of our customers use mobile so we'll.
Jain: In China, more than 90% of our customers use mobile, so we'll be able to amplify our experience into global markets. Thirdly, our excellent customer service. And we want to make sure that we serve our customers outside of China, as well as the customers within China. And lastly, we also have a very strong outbound business, which enables our team to negotiate very good deals for our global customers. So these are the strengths we have.
Be able to.
Speaker Change #173: <unk> our experience into the global places thirdly is our excellent customer services.
Speaker Change #173: And we want to make sure that we serve our customers outside of China as well as the customers within China and lastly, we also have very strong outbound business, which enable our team to negotiate very good deal.
Speaker Change #173: For our global customers. So these are the strengths. We have we will make sure that we provide excellent products and excellent services to our global customers. Thank you.
Operator: We will make sure that we provide excellent products and excellent services to our global customers. Thank you. Thank you, and one moment for our next question. And our next question comes from the line of Simon Chung with Goldman Sachs. Your line is open. Please go ahead.
Speaker Change #173: Okay.
Speaker Change #174: Thank you and one moment for our next question.
Speaker Change #175: And our next question comes from the line of Simon Cheung with Goldman Sachs. Your line is open. Please go ahead.
Simon Cheung: Hi, Good morning, Thanks for taking my question I, just have one small questions again in relation to.
Simon Cheung: The margins, which.
Speaker Change #176: Consistently I guess b than market expectations.
Speaker Change #177: I have been receiving a lot of inbound inquiry asking.
Speaker Change #178: Different margin profile for your.
Speaker Change #178: Dot com business your outbound business and your domestic business.
Simon Chung: Perhaps you can share with us, you know, if you have any data you can share by the respective business, the relative margin profile, maybe the tick rate. And secondly, you know, what should we think about the margin trend? We have seen your sales and marketing, you know, as a percentage of revenue consistently trending lower. Thank you. We have achieved a healthy margin level for our domestic business thanks to the large scale and scalability that we have achieved.
Speaker Change #179: Perhaps maybe you can share with us.
Speaker Change #180: You have any data you can share by the respective business the relative margins profile.
Speaker Change #180: Maybe the take rate.
Speaker Change #180: Secondly, how should we think about the margin trend, we have seen sales and marketing.
Speaker Change #180: Percentage of revenue consistently.
Speaker Change #180: Trending lower.
Speaker Change #181: In this particular quarter. We also see publicly one of my more actually trending lower on a year on year basis.
Speaker Change #182: Any color would be appreciated thank you.
Speaker Change #181: Yes.
Speaker Change #183: Thank you.
Speaker Change #183: Yes.
Speaker Change #184: We have we have achieved a healthy margin level for our domestic.
Speaker Change #184: To the.
Speaker Change #184: Large scale.
Simon Chung: And the outbound business normally has a slightly higher margin thanks to the average higher selling price. And at the same time, related costs, including the service cost, the product development cost, as well as the sales marketing cost are quite similar to compare with the domestic business.
Speaker Change #184: Scalability that we achieved.
Speaker Change #184: And the.
Speaker Change #184: Obama business normally has a slightly higher margin.
Speaker Change #184: Two.
Speaker Change #184: Our average higher selling price and at the same time.
Speaker Change #184: Related to the cost, including the service costs that the product development cost as well as sales marketing cost are quite similar to the.
Speaker Change #184: Compared with the domestic business. So therefore outbound travel normally is that higher margin business for us.
Cindy: So, therefore, outbound travel normally is the higher-margin business for us. With regard to the Trip.com business, as I said before, we closely monitor, although the Trip.com business has to do in the investment period, we closely monitor the contribution margin of the Trip.com business. And recently, our Trip.com business as a whole has achieved at least a break-even level in terms of the contribution margin. And in the longer term, we strongly believe that the Trip.com business will also become a profitable, healthy, and profitable business in the future.
Speaker Change #184: With regard to the trip Com business as I said before we closely although the trip com business has to deal in the investment period. However, we closely monitor the contribution margin of the trip Com business and recently, our triple Dotcom business as a whole has achieved.
Speaker Change #184: At least a breakeven level in <unk>.
Speaker Change #184: In terms of the in terms of the contribution margin and in the longer term period, we strongly believe that the triple Com business will also become.
Speaker Change #184: Our profitable healthy growth business.
Speaker Change #184: In the future.
Cindy: So, in summary, we expect our margins to align with the typical seasonal patterns, reflecting strong business growth and disciplined cost management. And looking ahead, our margin expansion will primarily stem from operational scalability and improved sales marketing efficiency. However, this may be partly offset by additional expenses associated with expanding our international operations.
Speaker Change #184: So.
Speaker Change #184: In summary, we.
Speaker Change #184: We expect our margins to align with that will be aligned with the typical seasonal seasonal patterns.
Speaker Change #184: Reflecting the strong business growth and disciplined cost management.
Speaker Change #184: And looking at our margin expansion were primarily stem from operational scalability and approve the sales marketing efficiencies.
Speaker Change #184: However, this may be partially offset by additionally, additional expenses.
Speaker Change #184: Associated with expanding our international operations. Thank you.
Cindy: Thank you. Great, thanks a lot. Thank you. I would now like to hand the conference back over to Michelle Qi for any closing remarks. Thank you. Thank everyone for joining us today. You can find the transcript and a webcast of today's call on investors.trip.com. We look forward to speaking with you on our second quarter of 2024 earnings call. Thank you, and have a good day. Thank you very much. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Speaker Change #185: Great. Thanks, a lot.
Speaker Change #184: Yes.
Speaker Change #186: Thank you I would now like to hand, the conference back over to Michelle Qi for any closing remarks.
Michelle Qi: Thank you. Thank you everyone for joining US today, you can find the transcript and webcast of today's call on Investor pivotal come we look forward to speaking with you on our second quarter of 2024 earnings call. Thank you and have a good day. Thank you very much. Thank you.
Speaker Change #187: This concludes today's conference call. Thank you for participating you may now disconnect.