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Chinese Online Travel Agency Trip.com Sees Revenue Plummet As Covid-19 Fallout Lingers

By Ding Yi / Sep 25, 2020 05:21 PM / Business & Tech

The Covid-19 pandemic continues to wreak havoc on the profitability of Trip.com, a leading Chinese online travel company, in the second quarter of 2020, despite countries having begun easing travel restrictions to various degrees.

Trip.com reported revenue of 3.2 billion yuan ($448 million) for the period between April and June, down 64% year-on-year, with its four major businesses of hotel reservations, transportation ticketing, packaged tours and corporate travel all falling, according to the company’s latest earnings report released on Friday. Of the four major revenue sources, the packaged tours business was hit hardest, representing an 88% decline on the same period in 2019.

However, when compared with the first quarter, revenues of hotel reservations and corporate travel increased 9% and 29% respectively.

For the three months through June, net loss attributable to the company’s shareholders totaled 476 million yuan, compared with 403 million yuan a year earlier and 5.4 billion yuan in the previous quarter, the financial report showed.

Facing the global pandemic, Trip.com adjusted operational priorities in the second quarter by minimizing operating expenses, said the company’s CEO Jane Sun, in line with the quarterly results showing expenses for product development, marketing, general administration were down 32%, 69% and 37% year-on-year respectively.

Trip.com also said that it expects its third-quarter revenue to decrease by between 47% and 52% year-on-year, due to continued fallout from the pandemic.

In August, Trip.com and JD.com inked an agreement, under which Trip.com would sell competitively priced tickets on the e-commerce platform while JD.com would offer its traffic, livestreaming resources and marketing prowess.

Contact reporter Ding Yi (yiding@caixin.com)

Related: JD.com, Trip.com Tie Up as Domestic Travel Comes Back to Life


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