On February 22, Ctrip Group announced its unaudited financial performance for the fourth quarter and full year of 2023. In 2023, Ctrip Group's net revenue was 44.5 billion yuan, a year-on-year increase of 122%. Specifically, the revenue from accommodation booking was 17.3 billion yuan, transportation ticketing revenue was 18.4 billion yuan, tourism and vacation revenue was 3.1 billion yuan, and business and tourism management revenue was 2.3 billion yuan, with year-on-year growth of 133%, 123%, 294%, and 109%, respectively.
Yang Yanfeng, Director of the Online Tourism Research Center at Beijing United University, told Securities Daily: "In the past year, the fundamentals of the tourism industry have recovered, visa policies have significantly loosened, and the travel industry chain has continued to benefit. Ctrip's position in the channel end market is stable, promoting strong growth in its business revenue. The hot recovery of the industry is expected to bring more potential competitors, and the competition pattern on the channel end will become more intense in the future."
"In 2023, driven by the tourism boom, China embarked on an important journey of reconnecting with the world. Thanks to its expanding market influence, our international business has achieved significant growth." Liang Jianzhang, co-founder and Chairman of the Board of Directors of Ctrip Group, said, "We will continue to pay attention to globalization and artificial intelligence innovation, and further explore future opportunities."
Co recovery with the tourism industry
According to data from the Ministry of Culture and Tourism, the number of domestic tourists in 2023 was 4.891 billion, an increase of 2.361 billion compared to the same period last year and a year-on-year increase of 93.3%. From a quarterly perspective, the number of domestic tourists in the fourth quarter was 1.217 billion, a year-on-year increase of 179.1%. Ice and snow tourism, as well as local cultural and tourism activities, have caused the traditional off-season tourism market to maintain high heat in the fourth quarter, driving the growth of various businesses on online tourism platforms.
From the perspective of business segments, in the fourth quarter, Ctrip's accommodation booking revenue was 3.9 billion yuan, a year-on-year increase of 131%; The revenue of transportation ticketing was 4.1 billion yuan, a year-on-year increase of 86%; The revenue of tourism and vacation business was 704 million yuan, a year-on-year increase of 329%; The revenue of business travel management business was 634 million yuan, a year-on-year increase of 129%.
Ctrip's entry and international business has recovered rapidly. In the fourth quarter, Ctrip's outbound hotel and flight bookings recovered to over 80% of the same period in 2019, higher than the industry's overall recovery rate of about 60%. The total bookings on Ctrip International OTA platform increased by over 70% year-on-year.
In addition, the amount of domestic tourism consumption increased significantly year-on-year in 2023. According to data from the Ministry of Culture and Tourism, the total cost of domestic tourists traveling in 2023 was 4.91 trillion yuan, an increase of 2.87 trillion yuan from the previous year and a year-on-year increase of 140.3%. Seizing the momentum of tourism recovery, Ctrip is increasing its investment in AI technology. In 2023, Ctrip's product research and development expenses reached 12.1 billion yuan, a year-on-year increase of 45%, accounting for approximately 27% of net operating income, providing underlying support for business innovation.
The achievements of technological research and development are reflected in many aspects such as customer service, content innovation, and partner empowerment. In July 2023, Ctrip launched a vertical model for the tourism industry called Ctrip Quest (in beta) and an AI travel assistant called TripGenie. As of the end of 2023, with the help of intelligent customer service, the self-service problem-solving rate of Ctrip's flight and hotel services has reached over 70%.
"In order to seize the growth trend of the global tourism industry and create new opportunities, leading online tourism platforms are committed to enhancing their technological and product innovation capabilities, enhancing customer service, and promoting sustainable development of the tourism industry," said Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, to reporters
Drive tourism employment
According to the financial report, in 2023, the number of airport segments in fourth and fifth tier cities on the Ctrip platform increased significantly, with a year-on-year increase of 127% and a 13% increase compared to 2019. The number of new homestay merchants admitted throughout the year increased by 122% year-on-year. The number of cooperative merchants in Ctrip's tourism and vacation business increased by 54% year-on-year, and the transaction amount increased by more than three times year-on-year.
The tourism industry has a significant driving effect on consumption such as accommodation, catering, and shopping, and is an effective way to consolidate the achievements of rural poverty alleviation and rural revitalization. Meanwhile, as a powerful engine for promoting employment, the tourism industry has created a large number of job opportunities. According to the financial report, as of 2023, Ctrip has directly driven over 100000 job opportunities through self recruitment and platform registration of tour guides and customized instructors. In addition, the number of employees indirectly driven by the platform's provision of services such as hotels, air tickets, tickets, and transportation has exceeded 10 million.
Sun Jie, CEO of Ctrip Group, said, "We strive to create more job opportunities and make sustainable development an integral part of our long-term growth strategy. We promote sustainable development in the industry through community friendliness, environmental friendliness, family friendliness, and ecological chain friendliness."