Vaccination Drive to Help Increase Ctrip's Revenue

Consumer Staples Author: 石伟 Mar 04, 2021 09:03 AM (GMT+8)

On the morning of March 4, Ctrip group announced the financial performance of Q4 as of December 31, 2020, and the whole year of 2020.

Ctrip Travel

The data shows that, in 2020, the GMV of Ctrip group was 395 billion yuan, and the annual net operating revenue was18.3 billion yuan; in Q4 of 2020, the net operating revenue of Ctrip group was 5 billion yuan, and the net profit belonging to the shareholders of the group was 1 billion yuan, a year-on-year decrease of 50%. The gross profit rate was 82%.

Looking at the Q4 revenue breakdown, Ctrip's accommodation booking revenue was 2.2 billion yuan, a year-on-year decrease of 24%; its traffic ticketing business was 1.7 billion yuan, a year-on-year decrease of 51%; its tourism and holiday business was 262 million yuan, a year-on-year decrease of 67%.

Although the impact of the epidemic on the tourism industry is unprecedented, but fortunately, domestic short distance and local travel has become the key growth point of Ctrip's recovery. In the fourth quarter of 2020, the Gmv of hotels in the province increased by more than 20% year-on-year, and the number of tickets and local play bookings nearly doubled. This good state lasted until the end of the Spring Festival.

On the business side, Ctrip began to deeply cultivate the supply chain: by the end of 2020, the number of local play suppliers of Ctrip increased by more than 25% year on year.

Live and special channels have also become the key points for Ctrip to increase its revenue. In 2020, the cumulative contribution of the two channels to the transaction volume is about 5 billion yuan. According to the financial report, Ctrip's content channel contributed twice as much to app traffic as it did at the beginning of the year, and the access time of information flow increased by more than 200% compared with that at the beginning of the year.

According to a report from the China Academy of tourism, with the popularization of the vaccine and the expansion of the scope of vaccination, the willingness of residents to travel in 2021 will remain above 85%; from Q3 in 2021, the Hong Kong and Macao region and business tourism market are expected to recover; the entry-exit tourism market may start in the second half of 2021, and the number of outbound tourists may increase by 70% year on year.