Monday, June 17, 2024

Trip posts profit growth amid booming travel demand

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China’s leading tourism platform Trip.com posted 26 percent net profit growth in the first quarter with “significant increase” in both domestic and outbound travel demand, the Shanghai-based company said on Tuesday.

In-bound travel has become a spotlight for Trip following the release of visa-free and other policies by China to attract international guests.

Trip reported a net profit of 4.3 billion yuan (US$597.2 million) in the first quarter, compared with 3.4 billion a year ago. Its revenue hit 11.9 billion yuan, with a growth rate of 29 percent year on year.

“The year 2024 has begun with a significant increase in both domestic and outbound travel demand in China, facilitated by a more stabilized supply and further relaxation of visa requirements,” James Liang, executive chairman of Trip, said in a statement.

Earlier this year, China adopted a visa-free policy that spares many European passport holders a time-consuming and costly process.

This measure encourages travelers from nearly a dozen European countries to explore China, which beckons with its well-endowed tourist resources, rugged terrain and tantalizing food.

Accommodation reservation revenue reached 4.5 billion yuan while revenue generated from transportation ticketing hit 5 billion yuan, major income sources for Trip in the first quarter.

Additionally, Trip’s global business experienced robust growth, thanks to its upgraded international website Trip.com that features English language and international payment services.

Trip.com currently partners with more than 600 domestic tourist attractions, including the world-renowned Terracotta Warriors and Horses Museum, offering multilingual services and accepting over 20 different payment methods to enhance international visitors’ experience. This focus on internationalization is reflected in the firm’s quadrupled inbound travel bookings in the first quarter.

Trip.com’s strong performance positions the company well to capitalize on the ongoing travel boom in China and beyond, industry officials said.

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