Since the outbreak of the epidemic, although the strong recovery momentum of China’s tourism market has been significantly restrained, it also gave birth to new market consumption demand such as local peripheral tourism. The same journey was adjusted in time, and Q1 still maintained a profitable trend. On the evening of May 19, Tongcheng travel (0780. HK) released its first quarter performance report as of March 31, 2022.
During the reporting period, the revenue of one-way travel was 1.72 billion yuan, an increase of 6.5% year-on-year, returning to 96.3% in the same period in 2019 before the epidemic; The transaction volume was 32.4 billion yuan, returning to 90.3% of the same period in 2019 before the epidemic; The adjusted net profit reached 240 million yuan, a year-on-year decrease of 18%; The adjusted profit margin is 14.3%.
Specifically, the revenue of the same journey mainly comes from accommodation reservation service and transportation ticket service. Among them, the income from accommodation reservation service was 543 million yuan, accounting for 31.6% of the total revenue; The revenue from transportation ticketing services was 1.017 billion yuan, accounting for 59.2% of the total revenue.
According to the same journey travel, although affected by the epidemic, the bus ticket business grew rapidly. Compared with the same period in 2021, the number of bus tickets increased by more than 170%.
It is worth noting that the huge sinking market traffic brought by wechat platform has become the key to the profit of the same journey.
During the reporting period, wechat applet contributed about 84.1% of the average monthly active users to the same journey. Tongcheng travel has also increased its marketing investment in the “Tencent Department” platform, and said its purpose is to guide users from multiple Tencent platforms such as QQ music, QQ browser and video number to Tongcheng travel applet.
With the wide range of wechat users, the same journey will open up the market in the third and fourth tier cities. As of March 31, 2022, the registered users in non first tier cities of the same journey account for about 87.0% of the total registered users; In the first quarter of 2022, about 59.8% of the new paying users on the wechat platform came from China’s third tier cities or below.
According to the financial report, in the first quarter of 2022, the average monthly live users of the same journey reached 240 million, an increase of 4.5% year-on-year; The average monthly payment reached 31.7 million, a year-on-year increase of 16.1%; The cumulative number of paying users in 12 months was 210 million, an increase of 21.4% compared with 170 million in the same period in 2021.
However, for the tourism industry, the repeated epidemic began in the second quarter, which generally had a great impact on the industry.
In terms of same journey travel, it was also acknowledged in the financial report that China was experiencing the most serious epidemic rebound since the first quarter of 2020 in the second quarter. In some parts of China, travel activities are stagnant, tourism consumption demand continues to be weak, and the short-term recovery road is full of ups and downs and uncertainty.
