China's Trip.com Group Reports 99% Increase in Net Revenue in Q3 2022, Outbound Travel Surges

21.11.2023 - 11:47 / skift.com / Peden Doma Bhutia / Jane Sun

In a significant rebound fueled by heightened summer travel demand, China’s Trip.com Group posted a net revenue of RMB 13.7 billion ($1.9 billion) in the third quarter, marking a 99% increase over 2022 and 31% increase from 2019 levels.

During an earnings call on Tuesday, CEO and Director of Trip.com Group, Jane Sun, revealed that while the overall Chinese outbound market only recovered to about 50% of pre-pandemic levels in the third quarter, the group’s outbound hotel and air ticket reservations have already surged to 80% of 2019 levels.

Hotel bookings experienced a 97% year-over-year increase, while air bookings saw a 70% uptick, according to Sun. Domestic hotel reservations showed robust growth, surpassing 90% year-over-year and 70% compared to 2019.

Accommodation reservation revenue for the third quarter was RMB 5.6 billion ($780 million), representing a 92% increase year-over-year, 36% higher than the 2019 level.

Over the past three quarters, Chinese consumers have exhibited a growing inclination towards prioritizing travel spending over other discretionary expenditures, with a steady rise in the propensity to travel abroad, Sun noted.

Emphasizing the role of tailored services offered by hotels in popular destinations, including Dubai, Paris, and Kuala Lumpur, such as Chinese language support and payment options, Sun said these contribute to enhanced consumer confidence.

Top outbound destinations for Chinese travelers continue to be in the Asia Pacific region, including Hong Kong, Macau, Thailand, Singapore, Korea, and Japan, due to higher flight capacity recovery and streamlined visa application processes. Notably, long-haul destinations like Europe have witnessed the fastest growth rate compared to the previous quarter.

Trip.com highlighted the significant growth of its global online travel platforms, representing nearly half of its total overseas business. Sun stated that the group sees substantial potential for further global expansion, with 60% of global bookings coming directly through its global mobile app.

In the Asia Pacific region, 70% of orders are booked through the mobile app, surpassing the global booking rate, Sun added. The company aims to strengthen its brand awareness in the Asia Pacific region, which it considers a “key market and powerhouse of growth.”

Highlighting a substantial surge in air ticket bookings on the global platform, Sun said this has nearly doubled year-over-year, surpassing 80% above 2019 levels.

“Additionally, our global platform’s overall hotel bookings also hit a new record high and more than doubled compared to 2019 levels,” she said.

Highlighting the company’s impressive market share growth in key regions such as Hong Kong, Korea, and Southeast Asia, Sun