Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| And our outbound hotel and air reservation have both surpassed the 2019 level |
| Additionally, our adjusted EBITDA margin in 2023 significantly improved to 31%, reflecting the successful optimization of our cost structure and overall productivity enhancement |
| Second, we're committed to delivering great value to our partners, contributing to the growth of our industry and collectively creating more job opportunities for the society |
| Our enhanced leadership in product and service has empowered us to significantly outperform the market |
| And certainly, we work hard to create value for our employees and shareholders fostering a positive and rewarding environment to allowing them to thrive and benefit from our success |
| We also utilize our AI tools to provide personalized recommendations and special offers, which enhancing our user engagement Secondly, our comprehensive one stop mobile remote model covers nearly all travel needs, making it especially attractive to mobile app users |
| Furthermore, we have made significant strides towards providing sustainable travel choices across all of our business lines |
| We significantly improved our adjusted EBITDA margin to 31% in 2023, which is the highest level over the past decade |
| That initiative has yield promising results with over 1500 partners being recognized as low carbon hotels |
| This decision demonstrates our strong confidence in the long term value potential of the company |
| This will be driven by the scalability, increase the marketing efficiencies through a strong mobile presence and brand name as well as the shift in the revenue mix favorably hotel bookings |
| Our global business is also thriving, particularly in the APAC region, reflecting a strengthened market presence and improve the product competitiveness |
| And we believe that the Trip.com growth is built upon our robust product logistics, supply chain service standard, as well as the technologies that we applied across various to our specific core regions |
| And our long term goal is to further enhance the marketing efficiencies in both the China as well as our international market by focusing on increasing our direct traffic -- increasing our direct traffic, as well as to improving our cross selling within our platform |
| Through exceptional customer service, AI technology and the reliable content, we continue to invest in improving user experience |
| Driven by strong demand, we expect the industry to continue flourishing, faster economic growth and cross cultural connection |
| With regard to the sales and marketing expenses in the fourth quarter, last year, we have seen a significant improvement in our marketing efficiencies, primarily due to our enhanced conversion, as well as the internal cross selling initiatives |
| This economic growth contributes to achievement of the common prosperity enable more individuals to start their own business and secure employment opportunity within their community, ultimately contributing to an improved quality of life |
| So the travel demand is very strong and we are very committed to provide the best service and products to our customers |
| In light of this positive outlook, we are committed to innovating and strengthening our global offering to capitalize on these trends |
| During this period, the travel industry witnessed a strong momentum |
| We have seen that certain segments, such as entertainment, music festivals, wellness, and travel, these segments are doing very well |
| We are confident in our ability to contribute to the growth and success of the travel industry in many years to come |
| You have put up very, very strong results and congrats on that |
| This outstanding result was due to the robust release of travel demand and the exceptional performance across all of our business segments |
| With Trip.com Groups, extensive customer reach and a robust supply chain, we are well prepared to capitalize on the future growth of inbound travel |
| In Q4, the China domestic market continued to exhibit robust growth |
| This clearly illustrates the potential for the strong growth in outbound travel in the coming year |
| In the fourth quarter, China market continue to demonstrate robust growth |
| Domestic hotel booking grew over 60% above the pre-pandemic level |
| Statement |
|---|
| I think if you look in the prior several years, on a sequential basis, obviously fourth quarter seasonally weaker, we see some solid margin contraction and we have seen that as well in your fourth quarter result |
| However, I think the magnitude of correction like when I look at quarter-on-quarter the EBIT margins fallen by roughly about 6% to 7% compared to historically, maybe almost like mid-teens |
| People's confidence is very low |
| So there are a lot of cross currency in the Chinese economy today, as you know, I mean, the property market, the stock market are doing terribly |
| The total headcount of our product development, and G&A teams remained significantly lower than during the same period in 2019 |
| On the other hand, that recovery in outbound package tour is still lagging behind, but that gap has been significantly narrowing |
| Economy is kind of soft |
| This seems relatively slow considering the capacity has already reached 70% during the Chinese New Year holiday |
| Adjusted G&A expenses for the fourth quarter decreased by 16% from the previous quarter, and decreased by 1% from the same period in 2019 |
| And with our own data, during the recent Chinese New Year holiday, our group already saw our air and hotel reservations fully bounced back and beyond the 2019 level |
| Adjusted sales and marketing expenses for the fourth quarter decreased by 15% from the previous quarter, and decreased by 6%, compared with the same period of 2019 |
| At January of 2023, including the Chinese New Year holiday was a low base for travel activities and the travel momentum only started to pick up after the Chinese New Year |
| And outbound travel continues to recover with flight capacity during the Chinese New Year holiday, reaching around 70% of the 2019 level |
| They are craving for immersive cultural experiences thrilling adventures, and the music, euphoria |
| So I guess the question I have is, we have seen quite a few quarters of sales and marketing expenses, tracking well below the 2019 level |
| From your perspective, what factors might contribute to this slow recovery? When does management anticipate a full recovery in the outbound travel sector? Thank you |
| Demand for travel showed no signs of slowing down during the winter season |
Please consider a small donation if you think this website provides you with relevant information