SHANGHAI, 23 February 2024: Domestic and international businesses continued to recover robustly in the fourth quarter of 2023, Trip.com Group, a leading one-stop travel service provider, reported this week in its unaudited financial results for Q4 and full year of 2023.
Domestic hotel reservations grew by over 130% year over year.
Outbound hotel and air reservations recovered to over 80% of the pre-Covid level for the same period in 2019, compared to a 60% industry recovery in terms of international air passenger volume for the same period.
Total bookings on the company’s global OTA platform increased by over 70% year-over-year.
Financial highlights Q4
The company delivered strong financial results Q4 of 2023. Net revenue grew by 105% compared to the same period in 2022.
Net income was RMB1.3 billion (USD189 million).
Adjusted EBITDA for the fourth quarter was RMB2.9 billion (USD401 million). The adjusted EBITDA margin was 28%, which improved from 6% for the same period in 2022.
“We are pleased with the strong results achieved across our business segments in the past year,” said Trip.com Group chief executive officer Jane Sun. “The global travel industry has shown remarkable resilience and is poised to sustain its growth trajectory. To capitalise on this trend and unlock new opportunities, we remain committed to investing in technology and product innovation, enhancing customer services, and promoting sustainable travel industry development.”
Q4 and full year 2023 business updates
The company’s business has recovered significantly due to the resilient travel demand, leading to a surge in travel bookings and boosting revenue in 2023.
For the fourth quarter of 2023, Trip.com Group reported net revenue of RMB10.3 billion (USD1.5 billion), representing a 105% increase from the same period in 2022, primarily due to the substantial recovery of the travel market. Net revenue for the fourth quarter of 2023 decreased by 25% from the previous quarter, primarily due to seasonality.
For the full year of 2023, net revenue was RMB44.5 billion (USD6.3 billion), representing a 122% increase from 2022.
Accommodation reservation revenue for the fourth quarter of 2023 was RMB3.9 billion (USD550 million), representing a 131% increase from the same period in 2022, primarily due to the substantial recovery of the travel market. Accommodation reservation revenue for the fourth quarter of 2023 decreased by 30% from the previous quarter, primarily due to seasonality.
For the full year of 2023, accommodation reservation revenue was RMB17.3 billion (US$2.4 billion), representing a 133% increase from 2022. The accommodation reservation revenue accounted for 39% of the total revenue during 2023 and 37% in 2022.
Transportation ticketing revenue for Q4 2023 was RMB4.1 billion (USD578 million), representing an 86% increase from the same period in 2022, primarily due to the substantial recovery of the travel market. Transportation ticketing revenue for Q4 2023 decreased by 23% from the previous quarter, primarily due to seasonality.
For the full year of 2023, transportation ticketing revenue was RMB18.4 billion (USD2.6 billion), representing a 123% increase from 2022. The transportation ticketing revenue accounted for 41% of the total revenue both in 2023 and 2022.
Packaged-tour revenue for Q4 2023 was RMB704 million (USD99 million), representing a 329% increase from the same period in 2022. Packaged-tour revenue for the fourth quarter of 2023 decreased by 47% from the previous quarter, primarily due to seasonality.
For the full year of 2023, packaged-tour revenue was RMB3.1 billion (US$442 million), representing a 294% increase from 2022. The packaged-tour revenue accounted for 7% of the total revenue in 2023 and 4% in 2022.
Corporate travel revenue for Q4 2023 was RMB634 million (USD89 million), representing a 129% increase from the same period in 2022 and a 7% increase from the previous quarter.
For the full year of 2023, corporate travel revenue was RMB2.3 billion (USD317 million), representing a 109% increase from 2022. Corporate travel revenue accounted for 5% of the total revenue in 2023 and 2022.
Net income for the fourth quarter of 2023 was RMB1.3 billion (USD189 million), compared to RMB2.1 billion for the same period in 2022 and RMB4.6 billion for the previous quarter. Adjusted EBITDA for the fourth quarter of 2023 was RMB2.9 billion (USD401 million), compared to RMB286 million for the same period in 2022 and RMB4.6 billion for the previous quarter. Adjusted EBITDA margin was 28% for the fourth quarter of 2023, compared to 6% for the same period in 2022 and 34% for the previous quarter.
For the full year of 2023, net income was RMB10.0 billion (USD1.4 billion), compared to RMB1.4 billion in 2022.
(Source: Trip.com Group Limited)
