China's Top Online Travel Service Provider Swings To $6M Profit In Q2, But COVID-19 Curbs Sour Recovery

China’s leading online travel service provider Group Ltd TCOM reported a second-quarter profit of RMB 43 million ($6 million) compared to a net loss of RMB 659 million ($93.5 million) a year earlier and RMB 1 billion in the previous quarter.

For the company, staycation travel continued to serve as a major contributor to the recovery of the Chinese domestic market. Local hotel bookings increased by over 30% compared to the same period in 2019, it said in a statement.

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Diluted income per ordinary share and per American depositary share (ADS) stood at RMB 0.10 ($0.01) for the second quarter of 2022.

COVID Impact: During the second quarter of 2022, the COVID-19 resurgence continued to disrupt the travel industry in China. The company’s revenues took a hit primarily due to the sustained disruptions, registering a 32% fall to RMB 4.0 billion ($598 million), compared to the same period in 2021.

However, despite domestic travel taking a hit due to continued restrictions in China, global travel continued to gain momentum. Both air-ticket and hotel bookings on global platforms increased over 100% year-over-year in the second quarter, the company said.

Executive Chairman James Liang said the recovery momentum in Europe and the United States remained robust, and the rebound of travel activities in the Asia-Pacific region also sped up due to further relaxation of travel restrictions.

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Posted In: AsiaEarningsNewsTravelMarketsGeneralChinaChina Travel Service ProvidersCovid-19Eurasia
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