Chinese online travel giant Trip.com took a revenue hit in the fourth quarter of 2020 even though domestic travel recovered somewhat. The company still posted a quarterly profit as it increased efforts to reduce expenditure.

In the three months through December, Trip.com reported net revenue of 5 billion yuan ($761 million), representing a year-on-year decrease of 40%, with its four major businesses of hotel bookings, transportation ticketing, package tours and corporate travel all suffering a serious contraction, according to its latest earnings report released on Wednesday.

Of the four major revenue streams, the package tour business was hardest hit, dropping 67% from the same period of 2019, followed by its ticketing business with a 51% decline, the report said.

While revenue nosedived, Trip.com still registered a net profit of 1 billion yuan, compared with a profit of 2 billion yuan in the same period of 2019. The company achieved this by reducing spending on product development, marketing and administration by 20%, 50% and 20% year-on-year respectively, the report showed.

In recent months, China’s domestic travel market has shown signs of gradual recovery as travel restrictions have been largely eased. But cross-border travel remains low as the pandemic continues to spread rapidly overseas.

“In the near term, we will focus on the domestic market in terms of supply chain, product innovation, content capabilities, quality and technology. At the same time, we remain ambitious with a global vision to drive our sustainable growth in the post-pandemic period,” said Trip.com executive chairman James Liang.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Trip.com Reports First Quarterly Profit of 2020 as Travel Recovers