With the improvements made in its Q3 2020 financial report, the Trip.com group is expected to invest more in marketing.
According to the online travel booking giant Trip.com, the group’s net profit for the third quarter was 805 million USD, down 48% from Q3 last year but improving 78% from the previous quarterly reporting period.
Compared to earning 314 million USD in the same period last year and a loss of 105 million USD in Q2 2020, Trip.com operating income for Q3 was 117 million USD.
Trip.com’s China market is seeing a positive growth trajectory in the third quarter though it has extended through the October Golden Week, according to Trip.com Group CEO Jane Sun. Thus, this growth is likely to continue rising in Q4. The Group said it would continue to stay lean while investing in the necessary resources to ensure a greater market share as the market rebounds.
Sales and marketing expenses in Q3 dropped 54% to 166 million USD compared to the same period last year. This is because the group decided to cut costs related to sales and marketing promotion activities. However, compared to Q2 this year, Trip.com invested more in sales and marketing expenses, which increased by 71% compared to Q2.
Most of the company’s business segments in China have recovered to the pre-pandemic levels, according to Trip.com Group executive chairman James Liang. “Recent progress in the development of effective vaccines has been promising. We look forward to seeing more of our global markets resuming travel activities, following the successful footsteps we have witnessed in China,” said he.
Thanks to the recovery of the domestic market, revenue from accommodation reservations in Q3 reached 365 million USD, down 40% year-on-year but up 98% compared to Q2.
Revenue from transportation ticketing was 280 million USD, down 49% from the same period last year while revenue from package tours was 48 million USD, down 80% year-on-year but up 151% from Q2 this year thanks to China easing restrictions on cross-region travel.
Trip.com’s corporate travel revenue in Q3 was USD 42 million, down 16% year-on-year.