China’s premier online travel agency, Trip.com, has reported a notable 26% increase in its Q1 net profit, driven by a substantial rise in both local and international travel. The company’s focus on inbound tourism has been a driving force behind this growth, as China’s implementation of visa waivers and other initiatives aimed at attracting global visitors has yielded positive results.
For the first quarter, Trip.com recorded a net profit of 4.3 billion yuan (approximately US$597.2 million), a significant increase from the 3.4 billion yuan reported in the previous year. The company’s overall revenue also surged by 29% year-over-year to reach 11.9 billion yuan. The implementation of visa exemptions for travelers from certain European nations earlier this year has played a crucial role in boosting inbound tourism, making it easier for visitors to explore China’s diverse cultural heritage and landscapes.
Revenue generated from hotel bookings amounted to 4.5 billion yuan, while income from transportation ticket sales reached 5 billion yuan, representing key revenue streams for Trip.com in the first quarter. The company has also experienced substantial growth in its international operations, aided by enhancements to its global website, which now provides services in multiple languages including English and supports various international payment options.
Trip.com’s partnership with over 600 local tourist attractions, including the renowned Terracotta Warriors and Horses Museum, has further enhanced its offerings for international tourists. The company’s commitment to providing multilingual services and accepting diverse payment methods has contributed to a fourfold increase in inbound travel bookings during the first quarter.
Industry experts believe that Trip.com’s strong performance in Q1 positions it well to capitalize on the increasing travel trends both within China and globally. The company’s continued focus on innovation and the development of tailored services for both domestic and international travelers is expected to drive its growth in the coming quarters.
