Q4 2024 Trip.com Group Ltd Earnings Call
After the speaker's presentation, there will be a question and answer session to ask a question. During this session you will need a press star one on your telephone you will then hear an automated 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 you.
Weaker today, Michelle Qi Senior IR director. Please go ahead.
Michelle Qi: Thank you. Thank you everyone. Good morning, and welcome to Cooper will come groups fourth quarter of 104 earnings Conference call.
Joining me today on the call James Liang Executive Chairman of the Board Ms. Jane Sun, Chief Executive Officer, and MS. Cindy Wang Chief Financial Officer.
Michelle Qi: During this call we will discuss our future outlook and performance, which are forward looking statements made under the safe Harbor provision of the U S. Private Securities Litigation Reform Act of 1995.
Michelle Qi: Forward looking statements involve inherent risks and uncertainties.
Michelle Qi: Such our results may be materially different from the views expressed today.
A number of potential risks and uncertainties are outlined in cookeville com group's public filings with the security and Exchange Commission.
Michelle Qi: They'll come group does not undertake any obligation to update any forward looking statements, except as required under applicable law.
Michelle Qi: James Jane and Cindy will share our strategy and business updates operating highlights and financial performance for the fourth quarter of 2024 and full year of 2024 as well as outlook for the first quarter of 2025.
Speaker Change: 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: Thank you Michelle and thanks, everyone for joining us on this call today.
Speaker Change: Over the past year, the travel market has proven to be resilient with people's desire to explore the world and create unforgettable experiences growing stronger this shift highlights a broader trend consumers are increasingly prioritizing experiences that bring joy and fulfillment over material goods.
In 2020 for our core OTA businesses achieved a <unk> of over RMB, one two trillion or 169 billion U S dollars.
Speaker Change: At <unk> Dot Com group, we focus on AI innovation is one of our key priorities. Our suite of AI tools is designed to make travel more accessible and personalized from the planning phase, we inspire users with tailored recommendations and exclusive deals.
Speaker Change: True to its top rated hotels restaurants and activities based on millions of user reviews.
Speaker Change: <unk> trends trip deals and trip events dynamically adjust in real time to reflect the latest traveler preferences.
Speaker Change: Gary helps users generate travel plans with interactive routes and daily overviews, which can be easily shared with friends and family.
Speaker Change: Users can also rely on trip journey or seamless assistance via voice and text commands in multiple languages throughout their journey. Additionally.
Speaker Change: Additionally, they receive intelligent updates for hotels airport transfers and activities according to their existing itinerary.
Speaker Change: In 2024 trip Genie saw traffic surge by 200% browsing time increased by nearly 100% and the total number of conversations rise by 200%.
Speaker Change: Our international business continues to show robust growth, representing 14% of group revenue in Q4 and 10% in 2024.
Speaker Change: We are also committed to promoting inbound travel as it fosters cultural exchange and creates job opportunities.
Speaker Change: Every new visitor creates a ripple effect across industries from hotels and restaurants to tour operators reinforcing the travel ecosystem by investing in initiatives to position our country as an attractive destination, we contribute to sustainable growth that benefits the sector in the long term.
Speaker Change: Our commitment to rural revitalization is a key part of our sustainability initiatives by developing country retreats in rural areas, we support local economies by creating jobs and fostering small businesses by incorporating renewable energy sustainable construct.
Speaker Change: <unk> practices and.
Speaker Change: Eco friendly materials, we aim to make our retreat screen and sustainable helping to safeguard the planet for future generations.
Speaker Change: Looking ahead, we're excited about the opportunities in the evolving travel market, we remain committed to driving innovation and enhancing the traveler experience and we look forward to another year of growth and success alongside our partners with that I will turn the call over to Jane for operational.
Speaker Change: Highlights.
Speaker Change: <unk>.
Speaker Change: Thank you James good morning, everyone.
Speaker Change: As a brief overview our net revenue in Q4 grew by 23% year over year, reflecting the continued strength of travel demand for.
For the full year of 2024, our total net revenue saw a year over year growth of 20%.
Yes.
Speaker Change: Okay.
Speaker Change: Outbound travel continues to show robust growth maintaining the positive momentum we observed in previous quarters.
Speaker Change: The easing of visa application processes, and the increasing availability of international flights.
Speaker Change: Further fuel this upward trajectory.
Speaker Change: In Q4, the industry level cross border flight capacity reached over 80% of the pre pandemic level.
Speaker Change: Currently.
Speaker Change: Phone hotel and air ticket booking has recovered to more than 120% compared to 2019 consistently outperforming the industry by 30% to 40%.
Speaker Change: Okay.
Speaker Change: In 2020 for China saw a remarkable surge in domestic travel.
Speaker Change: $5 6 billion trips taken this growth highlights travel increasingly central role in Chinese saving lives.
Speaker Change: As the sector becomes an economic cornerstone initiatives such as consumption vouchers are expected to further stimulate travel spending and fewer domestic travel.
Speaker Change: Okay.
Speaker Change: China's inbound travel sector is emerging as a key driver of economic and cultural vibrancy.
Speaker Change: The expression of the transit visa to 240 hours and the expansion of visa free arrangements have led to a remarkable surge in international arrivals.
Official data shows that in 2020 for visa applications rose by 20% year over year and these are free entries increased by an impressive 112% from the previous year.
Speaker Change: This influx is fueled by strong demand from diverse source markets.
Speaker Change: Thank you for and full year of 2024.
Speaker Change: Around travel bookings on our platform increased by over 100% year over year.
Speaker Change: Are those from visa free countries rising by over 150%.
Speaker Change: In response Chip Dot Com group introduced free city tours for international travelers transiting via Shanghai in early 2024.
Speaker Change: In December we launched a complementary half date, Beijing tour offering free shuttle transfers multilingual guided commentary attraction tickets and Wi Fi.
Travelers can sign up for the tour at the terminal three of Beijing Capital International Airport to date travelers from nearly 50 countries, including Australia.
Speaker Change: <unk> Kingdom, Germany, France, and Singapore has participated.
Speaker Change: With its rich cultural heritage stunning landscapes, and favorable travel policies, China inbound travel market holds immense potential.
Speaker Change: Global connectivity strengthened China is well positioned to become one of the world's most cost effective and safe tourist destination.
Speaker Change: On the international front, we have strengthened our presence in key APAC markets and successfully expanded into new regions.
Speaker Change: By leveraging our one stop shop model high quality service and advanced mobile technology, we have significantly increased our global reach.
Speaker Change: In Q4.
Speaker Change: Ticket and hotel bookings on our international OTR platform grew by over 70% year over year with APAC bookings rising by around 80%.
Speaker Change: To build on this momentum we are making strategic investments in technology and talent acquisition.
Speaker Change: Our 16 global call centers solidify our commitment to maintaining high service standards worldwide. Our workforce has also grown to include thousands of travel professionals across 28 countries.
Speaker Change: With consistently improving customer service and a global customer satisfaction rate of nearly 90%.
Speaker Change: Chip Dot Com has earned multiple accolades, including contact center of the year and global support services of the year at the International customer Relations Excellence Award.
Speaker Change: As well as Asia, leading online travel agency 2024 at the World Travel Awards.
Speaker Change: This recognition underscores our commitment to putting customers first.
Speaker Change: Offering 24, seven global support and service to international travelers at every stage of their journey.
Speaker Change: Okay.
Speaker Change: The silver generation presents another exciting opportunity with over 100 million active and healthy seniors projected in the coming years.
Speaker Change: Travel market is poised to exceed <unk>, one trillion RMB in value.
Speaker Change: In early 2024, we launched the old Brent plus initiatives to cater to travelers, aged 50, and above who now represent 10% of our user base and have 30% higher purchasing power than average.
Speaker Change: We offer excellent value for money to customers and help suppliers balance demand during off peak season, creating a win win solution.
Speaker Change: Currently users can choose from over 7000 travel products across more than 50 trending destinations on our old friends Club channel.
Speaker Change: Shrink boutique hotels Hot Springs cruises and more we plan to expand our selection to meet growing demand.
Speaker Change: In addition to serving the silver generation, we're excited about trends among younger travelers there increased travel spending as evidenced in the growing demand for experiences such as live concert music festivals exhibitions and sporting.
Speaker Change: Dan.
Dan: To capitalize on this trend we have introduced our entertainment plus travel offering which integrate entertainment with travel providing young travelers with unique opportunities for a dynamic culture rich experiences.
Dan: Sure. This initiative, we aim to satisfy their desire for excitement social connection and immersive experiences beyond traditional tourism.
Dan: Committed to serving diverse traveler with innovative offering we align our business practices with a broader sense of purpose.
Dan: Developing country retreat to create jobs and support local economy.
Dan: Our dedicated to establishing a comprehensive development framework for the industry, ensuring long term ecological and social benefits.
Dan: These efforts elevated our MSCI rating by two levels two in Asia, and the United Nations Global compact highlighted our country retreat as a case study.
Dan: We also support our employees with various measures.
Dan: Call Center staff can work from home during Chinese new year to enjoy family reunion.
Dan: Additionally, we provide global employees with children under 18, an extra three days of paid leave to balance family and career.
Dan: These initiatives have strengthened our reputation as an exemplary employer.
Dan: As numerous best employer awards for all inclusive and nurturing workplace culture.
Dan: In conclusion the.
Dan: The market outlook is promising with significant growth potential we.
Dan: We are well positioned to deliver high quality travel services globally and remain dedicated to forging partnerships within the travel ecosystem.
Dan: Together, we aim to achieve mutual success and make a meaningful contribution to the economy with that I will now turn the call over to Cindy.
Cindy: Thanks, James Good morning, everyone for the fourth quarter of 2020 for Chris Dot Com Group reported a net revenue of $12 7 billion RMB, representing a 23% increase from the same period last year and a 20% decrease from the previous quarter.
Speaker Change: For the full year of 2024 net revenue was RMB $53 3 billion, representing a 20% increase year over year. This is primarily due to the resilient travel demand and consumption throughout the year accommodation reservation revenue for the fourth quarter was $5 2 billion RMB.
Speaker Change: Representing a 33% increase year over year, and a 24% decrease quarter over quarter, we have observed robust growth across our domestic outbound and international segments for the full year of 2020 for accommodation reservation revenue was $21 6 billion RMB, representing a 25.
5% increase year over year transportation ticketing revenue for the fourth quarter was $4 8 billion RMB, representing a 16% increase year over year, and a 15% decrease quarter over quarter, our domestic and outbound air bookings continue to exceed market growth, while our international.
Speaker Change: Our business also demonstrates strong expansion for the full year of 2020 for transportation ticketing revenue was $20 3 billion RMB, representing a 10% increase year over year packaged tour revenue for the fourth quarter was 870 million RMB, representing a 24% Inc.
Speaker Change: Kris year over year, and a 44% decrease quarter over quarter the year over year growth was mainly driven by international business, which has increased by around 100% for the full year of 2020 for packaged tour revenue was $4 3 billion RMB, representing a 38% increase year.
Speaker Change: Over year corporate travel revenue for the fourth quarter was 702 million RMB, representing an 11% increase year over year, and a 7% increase quarter over quarter. This was driven by more companies adopting our managed corporate travel services for the full year of 2020 for corporate Rev.
Speaker Change: <unk> was $2 5 billion RMB, representing an 11% increase year over year, excluding share based compensation charges adjusted product development expenses for the fourth quarter increased by 18% year over year adjusted G&A expenses for the fourth quarter increased by 24% year.
Speaker Change: Over a year. These are mainly due to increase in personnel related expenses for the full year of 2020 for the combined total of adjusted product development expenses and adjusted G&A expenses increased by 8% year over year adjusted sales and marketing expenses for the fourth quarter remained flattish compared to the previous.
Speaker Change: At Florida and increased by 45% from the same period last year for the full year of 2024, adjusted sales and marketing expenses as a percentage of net revenue was 22% compared to 20% last year. The increase was primarily driven by enhanced marketing efforts, particularly focused on strengths.
Speaker Change: Our global business and brand awareness adjusted EBITDA was 3.0 billion RMB for the fourth quarter compared with $2 9 billion RMB in the same period last year and $5 7 billion RMB in the previous quarter for the full year of 2024, adjusted EBITDA was $17 1 billion.
Speaker Change: RMB, representing a growth of 22% year over year diluted earnings per ordinary share and per ads were 3.09, RMB or zero point 42 U S dollars for the fourth quarter of 2024, excluding share based compensation charges and fair value changes of equity securities investments and <unk>.
Exchangeable senior notes long GAAP diluted earnings per ordinary share and per ads were 435, RMB or 0.6 U S dollars for the fourth quarter for the full year of 2024 diluted earnings per ordinary share and per ads were.
Speaker Change: There were $24 seven eight RMB 339 U S dollars, excluding share based compensation charges and fair value changes of equity securities investments and exchangeable senior notes long GAAP diluted earnings per ordinary share and per ads was <unk> 20, 620, RMB or $3 59.
Speaker Change: <unk> dollars as of December 31st 2020 for the balance of cash and cash equivalents restricted cash short term investments held to maturity time deposit and financial products was 90 billion RMB or $12 $3 billion.
Speaker Change: As part of our ongoing commitment to delivering value to our shareholders and in line with our regular capital return policy. The board of Directors has recently authorized the implementation of strategic capital return initiatives for 2025. These initiatives will include a share repurchase.
Speaker Change: Program of up to $400 million and a cash dividend totaling approximately 200 million U S dollars the cash dividend will be 30 per ordinary share and per payable.
Speaker Change: Payable to holders of ordinary shares in <unk> of record as of March 17, 2025 dividends to holders of ordinary shares are expected to be paid on or around March 27, 2025, and dividends to holders of 80 S are expected to be paid on or around April 4th 2025, We believe these.
Speaker Change: To reflect our strong financial position and our continued focus on delivering attractive returns to shareholders.
Speaker Change: In conclusion, the continued strength across key business segments underscores our ability to execute effectively and adapt to market dynamics as we advance into 2025, our enhanced capital return program reaffirms, our commitment to delivering value to our shareholders. We remain confident in our strategic direction and our.
Speaker Change: Dedicated to fostering sustainable growth and long term success with that operator. Please open the line for questions.
Speaker Change: Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced torch. All your question. Please press star one again, one moment as we move to our first question.
Speaker Change: Our first question is going to come from the line of Brian <unk> with Citi. Your line is open. Please go ahead.
Brian: Good morning, James Jane Cindy and Michelle Congrats congratulations on pace for the fourth quarter results.
Brian: Good question on a recent hot topic.
Brian: With the rise of agents and our new luxury language models could management share your thoughts I mean, how do you think all recent exciting developments.
Brian: Impact okay. So like trip com. Thank you.
Brian: Thank you for your question.
Brian: We focus on the deployment of AI technology.
Brian: Our business operations.
Brian: And then great potential to enhance our services by making China planning.
Brian: Personalized and efficient.
Brian: We believe AI agents.
Brian: Yes.
Brian: Excellent.
Brian: Yes.
Brian: Traditional search engine as primary entry points.
Brian: Opening new customer acquisition channels.
Okay.
Value.
Brian: Replicate particularly in two areas.
Brian: Firstly, our extensive real time proprietary traveling.
Brian: Key to delivering accurate.
Brian: Travel recommendations.
Brian: Secondly, our end to end service model.
Brian: Enable us to offer a competitive service.
Brian: And pricing.
Brian: Customer preferences.
Brian: Thank you guys.
Brian: Potential.
AI in the travel industry.
Brian: Furthering our investment in this field.
Brian: Alright, eager to introduce more user friendly and valuable features in the future.
Brian: Thank you one moment as we move on to our next question.
And our next question comes from the line of Alex Yao with Jpmorgan. Your line is open. Please go ahead.
Alex Yao: Thank you management for taking my question and congrats on the quarter.
Brian: Question is.
Brian: Or do you view, the current leisure and business travel demand.
Brian: How do you view the growth trajectory for 2025 and.
Brian: And lastly, what are the primary drivers.
Speaker Change: One to support the revenue growth. Thank you.
Brian: Yeah.
Thank you Alex.
Speaker Change: We have seen coal industry is very resilient, particularly after COVID-19 is over on the search of the travel demand is really strong.
Speaker Change: In particular, there are a couple of segments we're targeting.
Speaker Change: The first one is domestic travel market.
Speaker Change: See young people have shown great enthusiasm travel around the world.
Speaker Change: To visit different sites and event plus travel is really a trend for young people. The secondary traveling for US is for the early retired generation. This is the generation which has money is.
Speaker Change: Energetic and is very curious to explore the world. So we have a special package for silver generation.
Speaker Change: Third.
Speaker Change: Driving force is the further opening up of the borders we have seen many countries offer relax the visa restrictions to Chinese travelers. So that is another engine.
Speaker Change: For us to bring people around the world.
Speaker Change: And we also see the recovery of direct flights base.
Speaker Change: Based on the Fisher APAC at the end of this year, our direct flight will recover to approximately 90% to 95% of pre COVID-19 level. So all these factors give us very strong engine for the travel industry growth.
Speaker Change: And going forward.
Speaker Change: For the next three to five years, we will make investments to further.
Speaker Change: Provide excellent services and comprehensive products for our customers around the world.
Speaker Change: If you look at the Asia market.
Speaker Change: It's a 250%.
Speaker Change: Care to the China market. So it's a huge potential and our results have shown that we grow in the Asia market outside of China at a rate of more than 80% year over year. So we will keep up with the strong investment to make sure we offer.
Speaker Change: This is for the global customers. Thank you.
Speaker Change: Sure.
Speaker Change: Thank you one moment as we move on to our next question.
Speaker Change: Our next question comes from the line of Yang Lu with Morgan Stanley. Your line is open. Please go ahead.
Yang Lu: Thanks for the opportunity and congrats on the solid results.
Yang Lu: My question is that your operating margin reached a record high in 2024.
Yang Lu: Over the past decades.
Yang Lu: Would you expect the margin to trend in 2025 and beyond.
Speaker Change: Thank you.
Speaker Change: Yes, we actually never set a specific.
Our margin targets.
Speaker Change: Is that we consider margin as a natural outcome of that.
Speaker Change: Business mix and continuous improvement.
Speaker Change: Our operational efficiency across each business unit.
Speaker Change: In the near term, we will continue to prioritize our overseas business expansion, which strategic essential for unlocking significant long growth opportunity as well.
Speaker Change: Additionally, we are also very excited about the trends formative potential of AI, driven solutions, which will play a key role in healthy our enhancing our operational efficiency.
Speaker Change: US streamlining our operations and mitigating cost pressures over time.
Speaker Change: In the longer term period.
Speaker Change: We see no structural limitations to our profit margins it could be comparable to those of our international peers supported by our innovative strategy.
Speaker Change: <unk> expansion as well as forward looking investment. Thank you. Thank you.
Speaker Change: Thank you one moment as we move on to our next question.
Joyce Ju: Our next question comes from the line of Joyce Ju with Bank of America. Your line is open. Please go ahead.
Joyce Ju: Good morning, James Jane Cindy and Michelle Congrats for the strong results and thanks for taking my question Mike.
Joyce Ju: My question is Britain business travel related Goodman.
Joyce Ju: Could management share updates of your performance during the Chinese new year and post holiday trend with us.
Joyce Ju: Hotel price such as ADR or take rate trend recently, what is the outlook for 2025 appreciate any color.
Joyce Ju: Thank you.
You have Chinese new year, we observed several encouraging trends first the firstly the overall travel demand remains very healthy and many travelers choose to leave earlier or return late to avoid peak traffic.
In a more even distribution of demand during in the round official public holiday.
Joyce Ju: And second.
Joyce Ju: Travelers is and it's their travel radius to more distant.
Joyce Ju: Destinations.
Joyce Ju: Partly thanks to the longer period of the public holiday periods.
Joyce Ju: With cross border chips in particularly popular despite headwinds in certain areas.
Joyce Ju: Outbound travel bookings increased by over 20% year over year, while inbound travel maintained triple digit growth during the Chinese new year holidays.
Joyce Ju: After the holiday what we observed is the travel activities maintain a healthy momentum.
Joyce Ju: <unk>.
Joyce Ju: Alright, sorry.
Joyce Ju: Sorry for the hotel prices.
Joyce Ju: And outlook for the 2025.
Joyce Ju: The industry data shows that the hotel prices are still below last year's level.
Joyce Ju: Gradually approaching them.
Joyce Ju: <unk> supply increased by mid to high single digit percentage year over year, reflecting continued market confidence in the travel industry.
Joyce Ju: And we believe the ongoing improvement in the travel infrastructure will further benefit the industry in the longer term period.
Joyce Ju: And looking ahead to the year 2025, we.
Paid that growing travel demand and normalizing supplier growth was stabilized.
Joyce Ju: The hotel price. Thank you.
Joyce Ju: Thank you.
Joyce Ju: Okay.
Joyce Ju: Thank you.
Speaker Change: Thank you one moment as we move onto our next question.
Speaker Change: And our next question comes from the line of Wang Chung with UBS. Your line is open. Please go ahead.
Good morning management. Thank you for taking my question and congrats on the very good growth. This quarter. My question is about the outbound travel.
Speaker Change: So could you please update on the outlook for outbound flight capacity improvement this year.
Speaker Change: Have we seen any impact on outbound travel demand from the recent incident in Thailand also the higher prices due to FX changes also for our group our outbound travel growth have.
Speaker Change: <unk> consistently been outperforming the industry.
Speaker Change: Do we keep this outperformance going forward. Thank you.
Speaker Change: Okay.
Speaker Change: Thank you all about flight capacity reached over 80% of 2019 level in the fourth quarter and increased further during the Chinese new year holiday and according to the CIA AC total international flight capacity could recover to more than 90% by 2020.
Speaker Change: Right.
Speaker Change: Indicating a double digit year over year growth.
Speaker Change: Despite headwinds in certain major destinations our total outbound bookings.
Speaker Change: <unk> grew by 20% to 30% during the Chinese new year holiday.
Speaker Change: We believe that some travelers.
Speaker Change: Simply switch their destinations.
Speaker Change: And with regard to the impact from Forex changes.
Speaker Change: As far as today, there is with no significant we see no significant correlation between the forest to rates.
And international are priced so far.
Speaker Change: Yes.
Speaker Change: For the continuous outperform the industry growth.
Speaker Change: We focus is just.
Speaker Change: By continuously.
Speaker Change: Enhancing our product our <unk>.
Speaker Change: Offering as well as the service quality and with continuous investment in the trip Dot com business.
Speaker Change: We are able to further enhancing our international product offerings to some extent it will also benefit and fuel our growth for the outbound business travel. Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you and one moment as we move on to our next question.
Speaker Change: Our next question is going to come from the line of Simon Cheung with Goldman Sachs. Your line is open. Please go ahead.
Simon Cheung: Hi, Thanks for taking my question and also the presentation. Just one quick question is on the follow up on the Dot Com platform.
Simon Cheung: You have a salary that grow over 70% during the fourth quarter.
Simon Cheung: Im wondering whats the outlook for 2025, and some of the initiatives that Youre planning to do I remember that you did mention John now you have coverage of over I think 30 countries globally for example.
Simon Cheung: And then secondly, I think whether you have started to see some response from some of your local competitor or even some of the global competitors like a golden booking.
Simon Cheung: Thank you.
Simon Cheung: Yeah.
Simon Cheung: For the chip Dot com business is growing very rapidly.
Simon Cheung: I think we focus on our internal strengths.
Simon Cheung: Which includes providing one stop shopping platform, which make travel very convenient for our travelers secondly, the users experience is excellent and thirdly, we also focus to provide focus on providing excellent customer service to the global customers.
Simon Cheung: And lastly, we also invest heavily in AI. So with all these concerted efforts, we have seen very promising growth going forward and we'll keep up with our efforts.
Speaker Change: <unk> is a very robust industry, so everything's kicked our Congress.
Simon Cheung: <unk> was established we have seen competition from.
Speaker Change: <unk>.
Speaker Change: Sure.
Speaker Change: Different players.
Speaker Change: Our focus has always see due to our internal strengths to provide the best service and best product for our customers and naturally our footprint will grow.
Speaker Change: <unk>.
Speaker Change: Okay.
Speaker Change: Thank you and one moment as we move on to our next question.
Speaker Change: Our next question is going to come from the line of Jack <unk> with Mizuho Securities. Your line is open. Please go ahead.
Speaker Change: Great Jami.
Speaker Change: So we at Mizuho.
Speaker Change: Quick question on inbound travel in general it sounds like you guys are off to a great start.
Speaker Change: Just curious what the current contribution of inbound travel to Europe. This.
Speaker Change: And what is sort of expected growth rate going forward and maybe a big picture question over a longer term several years from now how should we think about the level of contribution.
Speaker Change: For inbound travel thank you so much.
Speaker Change: Yes, inbound travel has great potential globally, if you look at the countries, which attracts a lot of inbound customers.
Speaker Change: Ken inbound travel can contribute anywhere between.
Speaker Change: 2% to two even 10% of their GDP, depending on different countries for China. We just started the inbound travel.
Speaker Change: We have given more than 40 countries freebie.
Speaker Change: <unk>, we also extended in transit visa from three days to 10 days, so that makes the inbound travel very convenient.
Speaker Change: Last year, we invited more than 3000 global partners to Shanghai for summit and after that we charted for claims to take them from Shanghai to transact here, where the movie Avatar films and the feedback we got was very positive.
Speaker Change: People told us that they were very pleasantly surprised by what they have seen it.
Speaker Change: A very clean very safe people are very friendly the history.
Speaker Change: Is very rich.
Speaker Change: Infrastructure is excellent so we.
Speaker Change: We can see as long as we put concerted efforts.
Speaker Change: To promote inbound travel.
Can become trillion dollars.
Speaker Change: The contribution for this industry and kicked off is very well positioned because our inventory is the most comprehensive.
Speaker Change: Service is outstanding so we.
Speaker Change: I would like to welcome more friends from all over the world to come and visit us.
Speaker Change: So this is a very promising field for us to make our investments going forward in the next five to 10 years.
Speaker Change: Great. Thank you so much.
Speaker Change: Thank you and one moment for our next question.
Speaker Change: Our next question is going to come from the line of John <unk> with Barclays. Your line is open. Please go ahead.
Speaker Change: Thank you very much for taking my question.
Speaker Change: Hum.
Speaker Change: Im glad you talked about the enhanced capital return program for 25 earlier I was just wondering.
Speaker Change: Could you firstly remind us.
Speaker Change: <unk> is a dividend payout date for that $200 million and 404 and you maybe on the buyback this year any updates so far.
Speaker Change: Have you bought any shares back.
Speaker Change: Could you also remind us sort of whats beyond this year if you have.
Speaker Change: Announcer any other program beyond 2025, thank you so much.
Hi.
Speaker Change: Dividend.
Speaker Change: <unk> date.
Speaker Change: For the Hong Kong show.
Speaker Change: Shareholder is on the March 20 <unk>.
Speaker Change: Seven sorry.
Speaker Change: And the U S shareholders.
Speaker Change: The registration date is on the.
Speaker Change: First at the April 1st.
Speaker Change: Yes.
Speaker Change: And.
Speaker Change: In the year 2024, we fully executed.
U S dollar 300 million share repurchase plan.
Speaker Change: Which reduced the approximately 101% of our outstanding shares and for the year 2025.
Speaker Change: Our board of directors authorized a new capital return program and this include a share repurchase program of up to USD 400 million and a cash dividend totaling approximately USD $200 million effectively doubling the size of our.
Speaker Change: 2020 for capital return program and looking ahead, we will remain committed.
Speaker Change: To increase our shareholder returns through sustainable business growth, while also actively seeking opportunities to further enhance the values.
Speaker Change: Through our capital return program. Thank you.
Speaker Change: Thank you very much.
Speaker Change: Thank you and I would like to hand, the conference back over to Michelle Qi for closing remarks.
Michelle Qi: Thank you.
Michelle Qi: Thank you everyone for joining us today, you can find the transcript and webcast of today's call on Investor trip Com. We look forward to speaking with you on our first quarter 2025 earnings call. Thank you have a good day. Thank you. Thank you.
Michelle Qi: This concludes today's conference call. Thank you for participating and you may now disconnect.