Trip.com Group is showing continued improvement in its financial position, as it reports results for the third quarter of 2020.
The online travel giant says net revenue for Q3 was $805 million, down 48% on Q3 this year but improving 78% on the previous quarterly reporting period.
Operating income for Q3 was $117 million compared with $314 million year-on-year and a loss of $105 million in the second quarter of 2020.
Sales and marketing expenses in Q3 were down 54% to $166 million year-on-year attributed to a decrease in expenses related to sales and marketing promotion activities.
However, sales and marketing expenses were up 71% compared to Q2 in 2020, as the company ups its investment to promote domestic activities.
James Liang, executive chairman of Trip.com Group, says most of the company’s business segments have returned to pre-pandemic levels in China.
“Recent progress in the development of effective vaccines has been promising. We look forward to seeing more of our global markets resuming travel activities, following the successful footsteps we have witnessed in China.”
Recovery in the domestic market drove saw revenue from accommodation reservations in Q3 come in at $365 million, which was up 98% on the previous quarter but down 40% year-on-year.
Transportation ticketing revenue was $280 million, down 49% year-on-year and earnings from packaged tours was $48 million, down 80% year-on-year but up 151% on Q2, 2020, helped by the easing of cross-region travel restrictions in China.
Revenue from corporate travel revenue for Q3 was $42 million, down 16% year-on-year.
Jane Sun, CEO at Trip.com Group says: “We are glad to see that the positive growth trajectory in China exiting the third quarter has extended through the October Golden Week and sustained into the fourth quarter. We will continue to stay lean while investing in the necessary resources to make sure we capture even larger market share as the market rebounds.”
During an analysts’ call, Liang shared what the company plans to focus on going forward.
He says there will be a renewed focus on mass market products as well as securing “boutique and diversified inventory.”
“Our customers' preference are evolving and their needs have become more and more personalized.”
Liang also highlighted a focus on “supply chain empowerment” with additional support promised to suppliers across marketing, content creation, technology and financing.