The COVID-19 resurgence in China impacted
Trip.com Group
’s operations for the first quarter of 2022, with net revenue remaining flat compared to the same period in 2021 and decreasing 12% quarter-over-quarter.
Meanwhile, air ticket bookings on global platforms – Trip.com Group brands include Ctrip, Skyscanner and Trip.com – increased more than 270% year-over-year, mainly driven by recovery of the European and Asia Pacific markets.
Staycation travel continued to serve as a major contributor to the recovery of the Chinese domestic market, with local hotel bookings in Q1 2022 increasing 20% year-over-year.
"In the first quarter, we are encouraged to see solid growth of travel demand in the global markets, especially across Europe and the Asia Pacific, as more countries started to ease travel restrictions," says Trip.com Group executive chairman James Liang.
"We are keen to build on these positive signals to further strengthen our market position and fortify our globalization footprints."
Net loss for Q1 2022 was $155 million, an improvement over a net loss of $1.8 billion in Q1 2021.
Adjusted EBITDA for the quarter ending March 31, 2022, was $16 million compared to a net loss of $216 million for the same period in 2021.
Accommodation reservation revenue for Q1 2022 was $299 million, an 8% decrease year-over-year and a 10% increase from the previous quarter.
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Transportation ticketing revenue for the quarter was $262 million, a 10% increase from the previous quarter, primarily driven by strong recovery of air travel in the overseas market.
Revenue from packaged tours for the quarter was $20 million – a 27% decrease from the same period in 2021 and a 30% decrease from the previous quarter - while corporate travel was $35 million, a 12% decrease from the same period in 2021 and a 40% decrease from the previous quarter.
Sales and marketing expense for Q1 2022 decreased by 11% to $133 million for the same period in 2021 and by 20% from the previous quarter.
"Though it was challenging for domestic travel due to the COVID-19 resurgence in China during the first quarter, our results demonstrated our resilience amidst a confluence of challenges and uncertainties," says Trip.com Group CEO Jane Sun.
"While we may continue to see short-term fluctuations, demand for travel is still strong and shows a bright outlook in the long-term. We will remain adaptive to embrace the changing environment and be flexible with our strategies to swiftly seize growth opportunities."