Trip.com Posts Strong 2019 Earnings, Warns of Q1 2020 Slowdown
On March 19, Shanghai-based leading travel company Trip.com announced their financial results for the fourth quarter and full year of 2019. The company reported total revenue of $1.19 billion, beating analysts’ estimates. Trip.com’s share price increased nearly 2% in after-hours trading following the earnings release.
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Trip.com‘s international business showed strong growth, with the year-over-year revenue growth for hotels excluding Greater China increasing by 51%. In addition, during the fourth quarter, Trip.com delivered its 13th consecutive quarter of double-digit growth in terms of international air ticketing volume.
Meanwhile, Ctrip branded low-star hotel room-nights increased around 50% year-over-year, as the company looks to increase its presence in China’s untapped lower-tier cities. In terms of revenue breakdown, Trip.com’s accommodation bookings accounted for 38% of the company’s total revenue in 2019, while transportation bookings generated 39%.
James Liang, Executive Chairman of Trip.com, said about the recent quarterly release, “Despite a challenging beginning in 2020, we are confident of the underlying fundamentals of the Chinese economy, and continue to feel excited about the opportunities globally as well. During the recent novel coronavirus outbreak, we took immediate actions to take care of our customers and partners, while taking on necessary financial impact in the near term.”
Trip.com provided an update to their outlook for the first quarter of 2020, expecting net revenue to decrease by approximately 45% to 50% year-over-year during the period.