On August 27th, Ctrip announced its unaudited financial performance for the second quarter of 2024. In the second quarter, Ctrip's net revenue was 12.8 billion yuan. Among them, the revenue from hotel booking business was 5.1 billion yuan, the revenue from transportation ticketing business was 4.9 billion yuan, the revenue from tourism and vacation business was 1 billion yuan, and the revenue from business travel business was 630 million yuan. At the same time, product research and development expenses amounted to 3 billion yuan, accounting for approximately 23% of net income.
In terms of specific business, in the second quarter, the domestic tourism market maintained a historically high base while showing a trend towards diversified destinations. Ctrip stated that in response to the above changes, it has collaborated with 27 "C-brand cities" in multiple provinces and 22 domestic airports to carry out joint marketing, brand promotion and other activities, enhance the linkage of trunk and branch flights, and achieve a significant increase of 1 to 2 times in the number of tourists in cities such as Quanzhou, Zibo, Luoyang and Anshan compared to the same period last year, with a 30% increase in ticket sales at relevant airports.
Cross border tourism is a major highlight of the tourism market and has also driven significant growth in Ctrip's business. In terms of outbound tourism, in the second quarter, Ctrip's outbound hotel and flight bookings fully recovered to the same period in 2019. In terms of inbound tourism, Ctrip's booking volume for inbound tourism in the first half of this year nearly doubled year-on-year, and the inbound tourism business contributed 25% of Ctrip's overseas platform revenue. Combined with the development of Ctrip's overseas business in local markets such as Southeast Asia, Japan, South Korea, Europe, and America, the revenue of Ctrip's overseas platform in the second quarter increased by about 70% year-on-year.
In terms of segmenting the population, since last year, seeking incremental growth has become a focus of industry attention. Ctrip has launched the "Friends Club" brand, partnering with over 1600 hotels in more than 40 popular destinations across the country, offering over 4000 hotel and package products to meet the travel needs of the silver haired population with exclusive products and services. As of now, the GMV of Ctrip's Friends Club has reached 1.6 billion yuan. Targeting young people who are passionate about sharing and pursuing emotional value, Ctrip is deepening the development of new tourism products such as "exhibitions+travel", covering scenes such as concerts, music festivals, exhibitions, events, and film festivals. In the second quarter, Ctrip's exhibition and performance tourism products achieved a year-on-year growth of over 70% in GMV.
In terms of technology research and development, in the second quarter, Ctrip released the AI driven 2024 Ctrip Word of Mouth Global and Asia Top 100 list, covering multiple dimensions such as hotels, attractions, catering, and nightlife, providing users with reference; In terms of itinerary planning, Ctrip and Trip Genie can provide personalized, convenient, and efficient itinerary planning for global tourists; In terms of after-sales service, the application of AI and large models has improved the self-service resolution rate of customer complaints, saving nearly 10000 hours of manual customer service work time per day.
As of the end of the second quarter, the proportion of new energy vehicle orders in Ctrip's car rental business reached a quarter, while new energy vehicle orders for services such as airport transfers and private car tours were close to 70%. More than 2600 hotels have been selected for Ctrip's low-carbon hotel standards, driving 5.7 million travelers to stay in low-carbon hotels and reducing a total of 23000 tons of carbon emissions. Ctrip CEO Sun Jie stated, "We not only value business development, but also focus on social responsibility and sustainable development. To address climate challenges," Ctrip's MSCI rating has been upgraded from "BB" to "A" in terms of ESG.