Ctrip has showcased significant financial success with a revenue of RMB 12.8 billion in Q2 2024, highlighting strategic initiatives in elderly tourism and technological advancements in AI.
Ctrip Reports Robust Financial Growth, Emphasises AI and Elderly Tourism
Shenzhen, China, Sept. 29, 2024—Ctrip, a prominent name in the online travel industry, has released its unaudited financial report for the second quarter (Q2) and the first half of the fiscal year 2024. Demonstrating significant financial growth, the company reported a revenue of RMB 12.8 billion in Q2, reflecting both year-on-year (YoY) and quarter-on-quarter (QoQ) increases. A striking surge was noted in the net profit attributable to shareholders, which reached RMB 3.833 billion—a YoY increase exceeding 500%.
Financial Performance
Ctrip’s core business segments, hotel bookings and transportation ticketing, largely contributed to this revenue, accounting for 39.8% and 38.3% of the total revenue respectively. The tourism and vacation sector also exhibited a substantial 42% YoY growth, achieving RMB 1 billion in revenue for Q2 alone. Over the past year, the company’s overall revenue saw a consistent uptrend as indicated in various segments, bolstered by the recovering tourism market and effective demand fulfilment.
Ctrip’s mobile application continued to hold a strong position in the market, topping monthly active user (MAU) rankings within the online travel industry. The app maintained an average penetration rate of 8-9% throughout the first eight months of 2024, peaking at 11 million MAUs.
Strategic Shifts and New Initiatives
Elderly Tourism: A key initiative has been the focus on elderly tourism, which saw the launch of “Ctrip Elderly Club” in Q2. This new service caters specifically to users aged 50 and above, offering specialized travel products, benefits, and bespoke customer service. The platform’s ‘Family Card’ function allows younger relatives to organise travel bookings and itineraries for elderly family members. As of July 2024, “Ctrip Elderly Club” had introduced over 700 travel products across 40 destinations in China, with a significant proportion being exclusive offerings. This initiative served more than one million elderly travellers, contributing RMB 1.6 billion in GMV within just two months.
Cross-border Tourism: Capitalising on favourable policies such as the 144-hour visa-free transit and an increase in cross-border tourism, Ctrip expanded its range of inbound and outbound travel products. The company’s overseas customer base notably increased, evidenced by nearly a 200% YoY growth in inbound tourism bookings for the first half of 2024, making up 25% of revenue on international platforms. Outbound hotel and flight bookings have also returned to pre-pandemic levels.
Technological Investments and Innovations
Ctrip has persistently invested in artificial intelligence (AI) and other technological upgrades to enhance user experience. The company had previously introduced Ctrip Wendao, a proprietary AI model, and TripGenie, an AI travel assistant by Trip.com. During Q2, new AI-driven features such as “Travel Hotspots” and “Reputation Rankings” were launched, offering advanced, data-driven travel advice and decision-making tools.
Investments in research and development remained robust, with product R&D expenses amounting to RMB 3.1 billion and 3 billion in Q1 and Q2 respectively, constituting over 20% of net revenue. Such investments are pivotal in maintaining Ctrip’s edge in an increasingly competitive market, enabling them to provide intelligent, personalised services and stay ahead of cross-industry competition.
Future Outlook
Ctrip’s strategies indicate a strong focus on diversifying its offerings and deepening market penetration, especially in the segments of elderly tourism and cross-border travel. The company’s continued investment in AI and technological advancements positions it to enhance operational efficiency and improve user experiences further. As the travel market sustains its recovery and demographic changes unfold, Ctrip is well-placed to harness these opportunities for sustained growth and market leadership.
For more detailed information on Ctrip’s financial performance and strategic initiatives, you can refer to the comprehensive analysis provided by MoonFox Data.
Source: Noah Wire Services
