Chinese travel industry recovers gradually in the third quarter of 2022
Chinese online travel company Tuniu (Chinese: 途牛旅游网, NASDAQ:TOUR) reported its third-quarter results on 1 December. Tuniu's net income for the third quarter of 2022 was CNY 77.86 million (USD 11.16 million), down 32.1% year-on-year and up 110.67% from the previous quarter, impacted by COVID-19. For the third quarter, Tuniu reported a net loss of CNY 23.5 million, compared to a net loss of CNY 36.6 million in the third quarter of 2021. Tuniu expects to generate a net income of CNY 23.5 million to CNY 30.8 million in the fourth quarter, a decrease of 58% to 68% year-on-year.
Founded in October 2006, Tuniu is the first Chinese company listed on the US stock market that focuses on online leisure travel.
Tuniu's performance pressure mainly came from the contraction of its main business. Before the epidemic, outbound travel products accounted for about 60% to 70% of Tuniu's total business volume, and now this part of business revenue is essentially zero.
Tuniu's CEO Yu Dunde said, "In the third quarter, the domestic travel market gradually recovered compared to the previous two quarters. The company seized the opportunity of this rebound to drive the recovery of its performance. In addition, the company continues to control costs, improve operational efficiency and enhance its ability to respond to risks and opportunities."
The domestic competitors of Tuniu include CTrip (Chinese: 携程网, HK:09961) and Qunar (Chinese: 去哪儿网, NASDAQ:QUNR). As of press time, Tuniu closed at USD 1.22 apiece, with a market cap of USD 151 million.