Trip.com Group continues to recover with growth in domestic hotel and air reservation revenue for the quarter ended September 30.
Net revenue for the group was $969 million, up 29% year on year and 72% on the second quarter of 2022, driven by recovery in China’s domestic market.
Accommodation revenue was $408 million, a 32% increase year-on-year while transportation ticketing revenue was $369 million, up 44% year-on-year.
Net income for the third quarter was $34 million, up from a net loss of $125 million year-on-year.
Adjusted EBITDA for the quarter was $198 million, a 164% increase year-on-year.
Trip.com Group says international business continued to recover rapidly with overall air-ticket bookings on global platforms increasing more than 100% year-on-year.
James Liang, executive chairman of the group, says: “In the third quarter of 2022, the global markets made continued progress towards normalcy. The EMEA and America regions maintained strong growth momentum driven by the travel needs in summer. Travel activities also rebounded quickly across the Asia-Pacific region as more and more markets are reopening the borders and lifting quarantine measures. We are excited about the long-term outlook of the global travel industry and the opportunities that lie ahead.”
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In an earnings call, Jane Sun, chief executive of Trip.com Group touched on the recent launch of Project A, describing it as an upgrade to Project B, which was launched in 2020 to help boost business during the pandemic.
“B stands for automating up and A stands for reaching a new peak. Project A is launched with strategies to rebuild our brand image and revive consumer confidence by improving our product and service offerings to reunite the industry by sharing knowledge and building industry incubation center and to reestablish the industry’s social and environmental responsibility by pushing forward our last project to promote sustainable travel,” she says.
Project A has four pillars including the creation of a “global tourism data and resource sharing platform.”
Bo Sun, executive vice president and chief marketing officer of Trip.com Group, says: “We are opening up our airline ticketing and hotel resources to travel agencies around the world. In the short term, this will facilitate travel service providers to package and sell their products online, and help destinations to access the first cohorts of outbound Chinese tourists. While in the long term, this platform will enable real time supply chain updates according to global traveler dynamics and product supply. As a tech-driven leading travel service provider, we believe we have the responsibility to drive industry progress through such developments and resource sharing."
The company also recently announced a $1.5 billion sustainability-linked loan facility with a number of financial institutions that is tied to its environmental, social and governance targets.