On September 5th, TCOM(NASDAQ: TCOM), a leading online travel agency in China, announced its unaudited financial performance for the second quarter ending on June 30, 2023. In the second quarter financial results, TCOM achieved a net operating income of CNY 11.2 billion, representing a remarkable year-on-year growth of 180%, surpassing the same period in 2019 by 29%. This outstanding performance positions it ahead of its industry peers.
Since the beginning of this year, the tourism market has been accelerating its recovery. As entered the second quarter, domestic holiday travel reached new highs, and international travel also showed steady growth. TCOM saw a remarkable 170% year-on-year increase in domestic hotel bookings, surpassing 2019 levels by more than 60%. Although cross-border air passenger volumes in the second quarter only recovered to 37% of the 2019 levels, TCOM's outbound hotel and flight bookings have rebounded to over 60% of the 2019 levels. Furthermore, international flight bookings on its OTA platform experienced a year-on-year growth of over 120%, nearly double the levels seen in 2019.
According to data from China's Ministry of Commerce, travel services trade accounts for 20.8% of China's overall service trade, making it the second-largest sector in China's service trade and the fastest-growing one. TCOM has also emerged as a new driving force in leading industry development, particularly in areas such as promoting employment in the tourism sector, revitalizing rural tourism, and advocating for sustainable travel.
In terms of technological research and development, TCOM has invested in the development of vertical models and introduced Ctrip asked and TripGenie on domestic and international platforms respectively, providing travel solutions for users.
In terms of employment opportunities, TCOM now employs over 100,000 individuals, including full-time employees and offline store staff. Additionally, the company stimulates the development of the tourism industry's upstream and downstream supply chain, directly or indirectly creating millions of job positions.
In the revitalization of rural tourism, TCOM has established 23 Ctrip Vacation Villages across the country. This initiative has not only boosted the income of local villagers but also provided opportunities for young people to work in their hometowns.
"TCOM will continue to strengthen the synergy between its supply chain and business departments, while also maintaining its focus on strengthening the brand in global markets. The enhancement of the international OTA platform's brand will also help expand its influence among international travelers and attract potential inbound tourists," Sun Jie, CEO of TCOM, started. "As for the performance in the third quarter, driven by leisure demand, the tourism market continues to exhibit a robust growth trend."