In 2023, Ctrip achieved a net operating income of CNY 44.5 billion, with the international OTA platform expected to experience a year-over-year growth of over 70%.
Ctrip(TCOM:IXIC; 9961:HK), an integrated Travel Management TMC Platform, announced its unaudited financial performance for the fourth quarter and full year of 2023 on February 22nd.
In the fourth quarter, the company's net operating income reached CNY 10.3 billion, while the annual net operating income for 2023 amounted to CNY 44.5 billion, marking year-over-year increases of 105% and 122% respectively.
The fourth quarter, traditionally a low season for travel due to winter-related activities and various local tourism events, maintained a high level of activity, propelling growth across Ctrip's various business segments. Accommodation booking revenue reached CNY 3.9 billion, marking a 131% year-over-year increase; transportation ticketing revenue reached CNY 4.1 billion, an 86% year-over-year increase; vacation travel business revenue reached CNY 704 million, a 329% year-over-year increase; and corporate travel management revenue reached CNY 634 million, a 129% year-over-year increase. Overall, Ctrip's net operating income in the fourth quarter saw a 105% year-over-year increase, reaching CNY 10.3 billion.
Currently, Ctrip's international OTA platform operates in 39 countries and regions across Asia, Europe, and the Americas. Its leading international layout and service capabilities allowed Ctrip to benefit early from the recovery of inbound and outbound tourism, resulting in rapid growth in international business. In the fourth quarter, Ctrip's outbound hotel and flight bookings rebounded to over 80% of the levels seen in the same period in 2019, while international airline passenger traffic rebounded to 60%. Ctrip's international OTA platform witnessed a year-over-year booking growth of over 70%.
For the full year of 2023, Ctrip's net operating income amounted to CNY 44.5 billion. This includes accommodation booking revenue of 17.3 CNY billion, transportation ticketing revenue of CNY 18.4 billion, vacation travel business revenue of CNY 3.1 billion, and corporate travel management revenue of CNY 2.3 billion, marking year-over-year increases of 133%, 123%, 294%, and 109% respectively.
While achieving rapid growth in performance, Ctrip emphasized high-quality development. In 2023, Ctrip continued to invest in technological innovation, with annual R&D expenses reaching CNY 12.1 billion, a 45% year-over-year increase, accounting for approximately 27% of net operating income. This investment provides fundamental support for business innovation, continually enhancing user satisfaction and the capabilities of service partners. Simultaneously, Ctrip actively undertook responsibilities in promoting industry low-carbon development, facilitating employment, and rural revitalization, continuously enhancing its sustainable development capabilities.
In 2023, Ctrip maintained a high level of user satisfaction, with the Net Promoter Score (NPS) in Q4 increasing by 20% compared to Q3. Ctrip also established 24/7 multilingual customer service support and global SOS emergency assistance, providing continuous support for global travelers and continually improving user satisfaction. At the same time, Ctrip assisted partners in various fields such as destinations, hotels, travel agencies, stores, car rentals, and corporate travel clients to accelerate their recovery, creating incremental value.
In 2023, through refined operations on the Ctrip platform, air travel segments from fourth- and fifth-tier cities saw a significant increase, growing by 127% year-over-year and 13% compared to 2019. The number of new B&B hosts on Ctrip increased by 122% year-over-year, and through measures such as professional training and increased exposure, the gross merchandise value (GMV) of new B&B hosts in 2023 was over three times that of 2022. Throughout the year, the number of cooperative merchants in Ctrip's vacation travel business increased by 54% year-over-year, with transaction volume increasing more than threefold. Ctrip's corporate travel division helped enterprise clients save CNY 3.58 billion in travel costs throughout the year.
The tourism industry's significant impact on accommodation, dining, shopping, and other consumption is an effective means of consolidating the achievements of poverty alleviation and rural revitalization. In 2023, Ctrip opened eight new vacation farms, bringing the total to 28. These Ctrip vacation farms, on average, increased the annual income of local employees by CNY 40,000 per person, cumulatively creating a value-driven impact of CNY 860 million, indirectly leading to a CNY 580 million increase in related industrial chain output, and creating over 20,000 new jobs in related industries.
As of the time of reporting, Ctrip's Hong Kong stock closed at approximately HKD 343.80 per share, with a market capitalization of around CNY 222.1 billion; its US stock closed at approximately USD 41.93 per share, with a market capitalization of around CNY 27.08 billion.