Trip.com Group Limited (TCOM) 15 Dec 222022 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to Trip.com Group 2022 Q3 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I’d now like to hand the call over to your first speaker today, Michelle Qi, Head of Investor Relations. Thank you. ahead. go Please

morning of Good to Group’s Trip.com Thank earnings and conference quarter XXXX call. third you. welcome

Joining me Chief today Executive on Financial the call are the Ms. Wang, Ms. Officer. and Chairman Mr. Board; Jane Officer; Sun, Executive Cindy Chief of James Liang,

call, U.S. future and During Reform of Private are Securities we performance Harbor Safe discuss under XXXX. made Litigation statements the will provisions which our this outlook forward-looking of the Act

involve inherent and statements Forward-looking uncertainties.

and today. of will some updates, different such, Group’s prepared of statements, After A any James, our performance call forward-looking please. Securities XXXX except any expressed share and results Trip.com financial the quarter As undertake strategy are public Trip.com does turn to James, will quarter Commission. the Group law. as remarks, over the as With number Jane materially will well risks a Cindy in from the to as fourth highlights uncertainties be XXXX. our for James. the with and and required Q&A operating third potential session. Exchange update of applicable have obligation that, not views may the I we for business outlook outlined filings and under

COVID deliver in market which quarter, second the with the Despite better the half in joining demand domestic restrictions. for COVID’s Thank to air last delighted summer growth year-over-year air measures third in improvements call resurgence market, domestic pandemic since level. and hotel quarter, more to of skewed overseas performance Despite market, Michelle. to in revenues, Group travel demand, and us of August China’s travel demand we the driven targeted almost both bookings robust adoption relaxation positive recovered reflecting have of the and customers’ precise and continues see quarter, of although industry and strong you hotel you, travel. a in China than domestic everyone resilience in Trip.com today. over third control the rise Thank and positive for half year our markets the overshadowed travel has XXXX the are the showed Chinese the the growth. by In on for In the quarter resurgence late the seeing China, China the strong domestic performance fully impact to back ticket of QX in

We for solid of recovery to cross-border The of optimization the a see are and happy laid travel the adjustments. travel. further the recent foundation policy in adjustments COVID rebound new domestic

and Asia of region. us upswing front, growth XX% The to towards Overall, lifting The for the overseas the borders international three continued level. bringing hotel further strategy. industry QX grew have versus to on drive level to XXXX travel the reopening our and XXXX by was in current the over ride in quarantine surpassed to presents into opportunity the global globalization quarters. in market On progress our full measures for trajectory relief bookings platforms consecutive of pre-pandemic and in the an recovery

providing gain and to we able values the be frictionless will traction creating our on focused to customer remain travelers. we As post-pandemic experience to users,

and to see for and largely needs demand the strengthening in Overall our cooperation reliability. markets relieved. encouraging even accommodate us by it fortify our one-stop growth the travel with has markets global to users’ quality continuous model, We to will speaking, platforms cooperation overseas allow our of partners deep is which continue dive already the among global and our brands choice, into service value, revenge been when to

in at and are in a towards and We the heading growth industry the and of now right market market. with global recover the further positive potential standing long-term position remain continues travel to we As point. market turning China relaxation, our confident capability

to cautious While travel. turn uncertainties, operational With to call and the I that, magic over the to for will near-term the of are fully prepared being Jane we rekindle highlights. concerns

of you, and with Thank our overview highlights. our update in the performance James. would like start on quarter third Good morning, I to quick operational a everyone.

third in First, pandemic XXXX, on market, in performance China the following was robust and the industry June overall China summer. strong by saw in travel easing quarter travel the of recovery of domestic situation driven demand the

once outgrow domestic resurgence as the and hotel grew hotel COVID in growth sequentially we opened maintained the hotel China staycation recover by the bookings this of bookings Our XXXX to hotel a increased XX% pandemic versus August, July result Long-haul XX% from same-city easing previous in by rapidly overall XXX% also XXXX, solid around still by increased demand August. up managed picking up. the domestic of our revenue rules. further strong in long-haul quarter. to over quarter our hotel performance a will while year-over-year, XXXX XX% level Such and long-haul hotel since market level bookings reflected assured see domestic and travel positive results the approximately late the bookings Despite for the bookings

ticket performance, global platform, in On pace show a in heavy more September. overall in global stellar ticket the improve. formal regions opened are the growth. was Asia Kong of to travelers American double-digit over embrace the the bookings the recovery year-over-year markets following doors a also lifted got the on who Asia-Pacific, air to Southeast start further quarantine borders after EMEA same international are on Asia opening growth Across XXX% Japan performance of their Asian markets, the Hong and for while Taiwan announced Second, quarantine APAC, markets travel, in East global being achieved and our In has are air The the the opening over the accelerated above measures growth, on year XXXX. continued up market other and return XXX% ending hand, travel. rewards. last reaping bookings year-over-year the at as APAC to flight more and already continued and period to

extend such to quarter fourth surpass momentum then. hopefully see into XXXX the the by can level and expect We

above For bookings by hotel, platform quarter versus overall level on in over the XXX% by XXXX. increased hotel XXXX XX% in our increased market third non-China domestic hotel bookings global with has

growth we remains market Indonesia, the Southeast over in XXXX by Asia, major growth market. markets, quarters to region. the Hong global Kong, industry our robust, the Malaysia, hotel saw the all further especially continued three third the been Asian have anticipate we Asia-Pacific consecutive in etcetera in the growth over These In growing all triple-digit outperform in level. As our and triple-digits in bookings markets previous quarter,

line. business on Now

we to center for and our trip First to continue our from platform, In of QX, being of one-stop customer and over at core differentiate all, our TripPLUS other membership market, forward we of shopping invest efficiencies increase the gain of to high-end upsides. situation creating our maintained continued ourselves co-branded value in parties programs cities, strengthen XX% single benefit incremental accommodation, to our can lower our on users come our and with additional for our on the hotels TripPLUS extra high-quality product every our tier domestic base. to relationship through the to create a program, hotels. partners. in the focus chain capability for reservations from value our and push value our order customers our expand loyalty In the the to hotel proposition partner win-win market tighten and accommodation which of customers pool In China players. we can our access to to strengthening partners continue in enjoy and We

a collaboration cross-sell with tightening efficiencies also internal domestic high an are multi-gateway Our from brands products. acquisition user to competitiveness attain price and aim through

front, improving as to our intricacies of markets in of product market will user and suppliers. with international user coverage, well could group a brand stickiness we help as leverage local strengthening which competitive continued drive push of ties our the forward to the translate On focused delve turn will and efforts frequencies, penetration, local demand to into visit to increasing continue we expansion unique into traction user on large to and and user and capturing the which and with our level gain engagement higher upgrade Through offerings initiatives, awareness Therefore, of spending localization high local we remain retention. experience audience.

travel recovery market. overseas in and to record GMV tourism, quarterly with QX high increasing enable the our global build key partners our also thrive activity with by to of us in collaboration Close business the continued up a advantage Following robust year-over-year. XXX% competitive

experience have We more XX% market generation will travelers Asia-Pacific when the to the process. making markets. from have a In On other years X content past across improve engagement our preference last areas over third by In capabilities. major to generated decision-making the period and been in regions content of there continued travel great the user compared the the Transatlantic our quarter, year. engagement, copy September, were global evolved their progress and we and user being to same users our the in

terms corporate Fourth, In of platform responsibility. view engagement, Average user content XX%. viewed our user number duration increased about content of year-over-year. increased on also by average per

positively world. partners, chance operated us is impact While the for mission and in. to We every world our seizing the to a we trip society to perfect guiding create about communities value also our our care and customers pursue for better

XXXX in will to our We to and locals additional etcetera. markets job revitalization with Jiangxi, common forecast, multiple giving responsibility generate in China This the XX to country with to WTTC’s are tourism region Trip.com retreats push be create in to in XX% real sectors build in the We China, to across to committed aligns a in back up travel to help operations corporate With close Hunan, provinces, tourism with Anhui, heart, XXXX, in XX contribute According million Guangxi which local years will Henan, the and society. to our coming the empower general the opportunities in pursue to ambition jobs and from our including strong Asia-Pacific engaging initiatives prosperity. we to rural and and particular. economy. XX% have XXX forward currently continue

academies locals. professionals training a to established We revitalization multiple to also offer the rural

Korea, year product of upgrade. travel pandemic A and was B launched by our recently Project improving and driving with took our is launched consumption traveling as picking a litter As as a an campaigns Project Day part encourage revital A together global of more South act we stands by confidence users World new aimed reestablish and launched automating consumer overseas our our the continuation environmental pandemic. industry’s and stands incubation to industry industry In center promote revive place our building the forward project to B, travel. we We pushing market, social strategies to which to reaching also brand in and responsibility sustainable amidst jogging focus. service when by to image by Project reunite to practice the and travel. sustainable XXXX our beach and and knowledge peak. and offerings Environment for for think held In to rebuild sharing combining up A last

content In for We named campaign Singapore, in a in conclusion, to a share world door we also moving we their our the open are of also their users normalcy are Trip.com Kong Hong such was the sites throwing markets. towards eco-friendly strong Korea, good our for experiences. champion and launched delivered under delighted and team proud to by see closer challenging results Singapore.

We see new supply largely circuitry recovery with capacities. at tests, quarantine policy QR further we inbound the or flight industry. allowing PCR will symptoms include and period, We health recent that largely scrapping guidelines routes adjustments, help benefit optimization the in glad are patients COVID mechanism shortening code, the to quarantine travel of on mild will which no to home dropping China these restore believe removing the

embrace in we With the still are will now in I may call from surge the to the uncertainty opportunities short-term, COVID cases we turn the to industry of over Cindy. us. While and long-term the in outlook confident ahead of that, have

everyone. morning, Good Jane. Thanks,

revenue Group third long-haul recovery quarter local representing year-over-year increase XX% in the restrictions market following in XXX% reported for strong to last to increase brief domestic revenue travels, a XXXX and pandemic, affected and a August. overseas year Accommodation increase billion, RMBX.X billion, market. third of in a in performance short-haul period from the and XX% same and Trip.com For previous was XX% less quarter, the recovering This level. increase of was primarily from by XXXX, due recovery net our of of reservation and quarter XX% of China a due are a of the July XXXX mainly and resilience the easing which to RMBX.X representing travel quarter-over-quarter, the the

due quarter third the performance. a year-over-year in for by early loss hotel increase virus While business XX% ticketing mainly quarter-over-quarter, of the demand. This a rapid quickly quarter and domestic by August, recovery restrictions travel Transportation offsetted travel to XXXX also the that the late recovering to XXXX to our of overseas contributed was level. easing and due resurgence of for the to Transportation viral billion, summer XX% in late of for representing went of the XX% revenue facilitated soft in and July August since ticketing the performance August. increase RMBX.X our outbreak market second was driven new rounds was half

the summer the On recovering the for RMBXXX increase quarter-over-quarter, This was and level. increase the XXXX restrictions other due of the July the August. business XX% and which XXXX year-over-year travel our driven Packaged X remained recovering. mainly months the tour quarter-over-quarter, was momentum XX% than easing international primarily was the a million, level, X% third XXX% for higher its growth representing of in by XX% RMBXXX demand strong and million, maintained quarter revenue increase a XXXX of revenue stable third of quarter. year-over-year represented Corporate in hand, was quarter travel of XXXX to relaxation a the first to rapidly of and

million from quarter, the capture due were previous quarter control XX% XXXX. XX% period the third EBITDA operating quarter share-based by to last in to their for period in compared the increased we XX% and the same quarter. to a same for last teams China when year technology XXXX. share performance quarter still saving the quarter period same and Adjusted XX% with to for investment increased in Adjusted strong performance the in Excluding to and as third the bonus XX% expenses These by of to for by and XX% period the development same was quarter for in XX% demand. compared ordinary was or same same excellent in and were key in of and and increase product recover marketing and increase to RMBXXX million increased stick third compared previous increased quarter to year-over-year for mainly $X.XX RMBXXX sales the period last continue mainly third an expenses expenses expenses of with total of period by the XX% X% XX% our RMBX.X G&A XXXX. year the from saving cost in the third to market the the to of charges, from quarter. adjusted protocol. in previous per XXXX. billion Adjusted related third X% per of reward previous the the a XXXX amount compared RMBX.XX our the was margin to to in operations saving Adjusted overseas quarter. the paid quarter EBITDA It ADS increased was the a and Adjusted compensation the compared in marketing Diluted compared income quarter stringent

charges were equity investments value senior share quarter. notes, income Excluding exchangeable of security or fair third $X.XX share-based and ordinary and RMBX.XX for per per changes diluted and non-GAAP ADS the compensation

XX, As and products balance cash time billion restricted cash, the financial of September billion. cash XXXX, $X.X short-term deposits equivalents or and investment, was of RMBXX held-to-maturity

data, short-haul side to below in time positive the level. XX% than demand RevPAR with months were difficulty, reservations we to passenger we outperform The in improvements signals, of growth the our and QX. with some segments, XXXX business. more slightly are X sends the to would XX% was industry-level the Quarter resilient in air control subsequent due domestic domestic pandemic to reservations. local glad and the we was to performance fourth such and level. resurgence Turning the continue XX% was in soft travel to measures in positive the below XXXX October hotel see quarter According encouraged In mid-November industry measures. and travel business the local first pandemic-related date, of The on to share to like to strict public maintaining announcement our updated volume hotel see color across hotel November industry XXXX, level of to viral XX% better

happy PCR authority December rules with code result the travel in see checks before and also to dropping QR continues to to Despite to are remains see We a in to environment, quarters. COVID performance areas U.S. cities, test excluding of health its of quarter momentum relaxations. this continue soften macro stable also public we most uncertainties across China, the and traveling entering the among other in from largely our and hope China, the better accelerate, the recovery date. Europe and coming business in and challenges APAC, in Outside

COVID we go the have and uncertainties to been company’s gradually world recovery in the may a things control. path era, post-pandemic While linger, behind out as has a leaving choppy and of down still industry and to entering near-term are continues

We cash optimistic will remain future. and in to ready that, coming operator, cautiously opportunity travel about open while line stick any flow be I for management our the questions. protocol With seize spending please and continue with environment the the to

Thank Please from First Alex comes line Yao question from the JPMorgan. [Operator you. proceed. of Instructions]

behavior? Mainland Thank did company period. do with your Thank for COVID for leaving you. Cindy, the China changes that could team. behind. disruption world What morning, seen in weeks? my mentioned the management business the be are Good And taking share have an you initial you new there us normalcy? Can is you what you in question. user recent Also, and you for mentioned observation

for question. you Thank the

the released been macro over We performance end see to continued strong despite to the demand global resilient previous be demand to markets travel the continue travel are And challenges. quarters. has global show of delighted after even

China, Chinese emerging. COVID of and desire have in pattern years, confident the in new evolving the travel been We expect strong travelers preferences in these see are to and era. Travel are a similar norms post over

For one-stop global working local and on content build become travel travel on example, strategy, become sustainable the focused a remains growth as more rise which vision, make and is leisure in past has user remote engagement opportunity globalization our continue users. segment huge post and a also stickiness, and leveraging lower-tier a achievements. remain focus new our to preference leisure we the the been There and Short-haul era. many for into travel growth strengthening the in a our decade, also has to accessible. while penetrating With we COVID cities, foundation solid driving in higher platform for our strategy expertise

new Yes. With measures and is segment still booking demand encouraging a we infections see business very very a the and wave this increase and quite cities. also time regard is recent you. take past a some Thank the the could recent a actually cautious for whole very sequential might season and to travel first we winter the domestic in but for in the trend, forward as next get significant domestic of near-term, of in year. in are flat before flight travel nice people optimization the China’s leisure fully weeks growth this it strong the travel through and both hotel travel. reservations usually to to And rebound X rebound, for But measurement the We step industry. across in of execution announcement, saw COVID following anticipate release

from Chong [Operator Instructions] Next Please Thomas Jefferies. of comes question proceed.

as you we in as QX? color the more question. you. should Thank morning. about domestic QX? domestic about about how business Can takeaway takeaway and In and Thanks international ADR think for particular, the think the well taking we my how ADR management share recovery should good in Hi,

business fourth X travel of travel industry in X according difficult spread in in to continue industry November, maintained same with XX% to August in much regards Thank X to level glad the the quite generally see the demand. hotel recovering demand, measures. our With especially been time. the the a remained the first down months outperform muted moves And industry below But are pre-COVID to And pretty such ADR, months. the passenger ADR, the local a – control recovered our but pre-COVID you. to reservations months are the was was October on to overall Thomas. from take very recovery. COVID XX% ADR And quarter. hotel the has direction you, due hotel revenue the With first the the ADR public Thank the to partially XXXX growth contributed QX, improved domestic positive was in significantly rate comparably the to strict September. of and we resilient RevPAR year-over-year and our stable. of to local and with ADR, level data. very ADR level the still platform segments and the pre-COVID of cases volume regards short-haul a still the In was fully the and momentum starting In across hotel to the again air about level help XX% XX% regard past international before in to below basis, our in very has the which our international the pre-COVID level, has summer July domestic towards and

the for you Thank questions.

have Group. James Next Lee Please Mizuho proceed. we question, from

And on the business. congratulations international taking on Hi, thanks question. very results good my for

you, James. Thank

in And maybe quarter? brand, maybe international from product, think by give markets? And help down contribution us the the the maybe region? maybe on we much sense break recovery how can the international are And topic you you performance the by revenue a seeing us Thanks. should – just how by about yes, coming

market headwinds Sure. In recover continues global travel the the in to despite third certain markets. quarter,

the In overall our XX% has different level we in the ticketing year-over-year quarter. XXX% XXXX third and global performance terms to of of the air to over increased recovered remarks, platform our the XX% on in products, bookings as shared by prepared

year-over-year third global in XX% attractive activities on bookings quarter. platform hotel than XX% growth, which triple-digit sequentially non-Chinese platform tickets global for more our a and Our the And the XXXX grew our reservations growth on is our maintained versus in-destination level.

American such our labor terms summer, remained headwinds the the the Europe in maintained markets basis, On the shortage and of regions, air American in growth. in both year-over-year. price reservations the air XXX% with rebounded hotel And travel solid the in double-digit different making of pre-COVID high region In and level. to And the a activities pre-COVID the up progress flight APAC and above as strikes are a the EMEA our quickly capacity summer very despite well markets, and full APAC revenues year-over-year in reservations reservations toward recovery level. past from region

In revenue terms total in contribution even about the international the surpassed thanks contributing in operational XXX% recovery continued and certain international which level in QX, to of the you. of from to revenue total year-over-year, XX% the efficiency. the margin improving more the the XX% Thank And have than brands revenues the reached quarter. platform or pre-COVID grew EBITDA our of third

Cindy. Thanks, Great.

Thank we Please you Barclays. The questions. proceed. the for next have question Shao is from Jiong

for questions. Thank taking much you my very

that’s next travelers last few much in the so obviously next Thank months? going outbound, sometime the do to haven’t and by evolve Do share – decisive how hopefully? view can your much. the I been year, you any thoughts will outlook to New been in is has it outlook travel Chinese that your think swift, you of very spike reopening been able what has to for see year? going China’s for is if this do happen And was pivot which some years, you Chinese the Given the wondering XX Year you be back about

you. Thank

window, not at Year due a New China. Year low. New Year – not reservation, is moment, Spring Chinese visibility in Festival, booking is calendar And big the holiday Chinese a the the still short So, is this the to the New for

three following times times of announcement new the search COVID up the several However, policy. the went by interest –

the are of to because Spring increase past the seeing booking just Festival well. orders the is the the the very of cross-border reservations travel years. as the in the of optimization, that of short outbound not significant activity We windows measures. in continue And of to release forecast the meaningfully also current and couple But policy COVID refine are regard message recent authority travel, with will related to recovery healthcare following

same the year, level also our to highest especially the travelers, the desire to anticipate announced outbound will strong very case to Mainland has to of regards in weekly the the outlook the next inbound previous the four past With travel. the more also also I November, plans to of very have outbound doubled believe travelers, and reasonable where facilitate outbound in pre-COVID and since reservations XX% months increase the reached to level, high-end China cross-border in to will flight To-date, towards of think XXXX. the we the to the internationally. many the strong And average following of to reservations And is to-date, continue flight for level. changes the ticket we to are in inbound it’s release China five travel than quarters. that international capacity. search and Cross-border airlines And policies the market – flight recovered days. it rebound volume further in months travel recovery, about demand overseas about furthermore, skyrocketed air in XX% outlook the new in travel the And encouraged the grow. inbound see XXXX mid of subsequent

you. Thank

Thank you.

Thank you Poon question for from the from questions. Please proceed. The next comes Stanley. Morgan Alex

outlook, wish good management and strong for Congrats questions. you, health. future results, my everyone Thank keeping the on taking very

I So, related get to to normal will so very think reopened, my question – as we things quickly. getting are is

the XXXX once post-pandemic about growth think drivers? outlook back Thank level, future much. to we investors get should how you very So,

Yes.

have So, the we growth, in for seen long-term. future very strong pent-up the demand

site as travel domestic as surge the search a has relax as well both soon our of policy, travel. As government the for the international

very look So, at for domestic Trip.com, travel positively. international travel we and

well a offering to I all, the hotels, our value the product the comprehensive in for prefer of has are hotels. liked First travel, high-end by very for who who money for also been in people and staying customers think domestic stay high-end

that enjoyed time. very during resilient difficult has the growth past, even segment in So, a a

we sure cities further into the also the tapping users’ make team our and as untouched are markets lower-tier Secondly, quickly as encourage to penetrated to these possible. engagement

for our product to customer And bring surge a travel, in a have to travel. very international as And outbound the abroad offer travel, for very with the initiative driving of the travel even the lockdown. because long relaxation have customers comprehensive end who able strong run, are interest another seen the we the capitalize the of forward, solid that well high on. Thirdly, to for as we will we going become huge team during the service,

opportunity think travel, I with is as overall, very prevalent. So, domestic travel the as well international

is our working very to see Thank infrastructure our to the service also the domestic technology to as the global of customers products hard as attractions infrastructure enable the attractions. well best our and you. So, build team strengthen to the

Thank you.

Instructions] Thank question. question Capital. for T.H. proceed. Please Our the from Hou from next comes you Tian [Operator

I Good question. morning one just management. have

and margin level. So, margin this look quarter, at both the gross operating achieved record highest

you forward, Thank wonder target going I margins long the So, you. a have those for run? if in two

Thanks.

there our expenses – people two on are side. So, major One parts the of of is side. our

marketing. on is other sales The the and

to level we the while business, stable, people the cost actually total even sequentially slightly going company. according a headcount of on QX to year-over-year change the the per And in remained and our total may especially for performance stable on expect China headcount generally domestic staff side, the the remain forward, So, lower the basis.

sales second majority and in in and QX, the both and our and declined we marketing And increased investment sales capture is the strict marketing of the marketing scale the actually swiftly the to a measures. COVID expenses the market strong And and follow quarter in half beginning sales at to spending. investment sales discretional. protocols well spending of demand always a And the marketing China overseas we very in very China down travel as the travel and ROI-driven the will our of QX. On momentum, our marketing side, activities as due for the strict the in recovery emergence just especially of as cases large control

in and environment an Going swiftly protocol be forward, tough and recovery retain to keep adaptive fast-changing resources spending opportunities we the will just agile to capture a time. the to

help cross-selling run. to us the strategy to marketing app technology In – improvement long our addition, actually, improve also continuously and our our offering, in especially content on efficiency, will our and

we to we business in and model. of can level. going to very And return we a margins, XX% have the Thank you. the XX% back at a level, healthy to operating normal business least can as have reasonable terms we So, always very margin explained, good operating a when think

Cindy. Thank you,

you next question Thank for comes from the questions. The Please Wei from UBS. proceed. Xiong

for example, the from to for subsidies from competitive happens, to as we the if our OTAs stepping next the travel Good And share? my to the I other new entrants market because question. taking thoughts landscape do or that morning set you hear to increase, domestic domestic up market our Thank recover into Thank you. potential market? your defend pressure strategy management. expect what’s on competitive is updated year, want

Yes.

I been think competitive the our show for results and customer has competition. our we landscape, we in would So, always If well, focus out itself the partner second. will do first and both stand

everything market pandemic, the is stabilized is stable. seen a with very So, what market out, the we and is easening have

are capitalize able fronts. on the couple a However, opportunity of in we to

very they And the turning travel within of travel is have strong. well. people the segment, to distance growing more control. growth which is due market same-city in is pandemic. A that of short and are travel In that our First all, lot to very short-haul

seen in a that pickup We have huge segment.

will use. [Technical up-sell products in cross-sell to start based we [ph] shopping that strengths. And [indiscernible] the are offer of able within terms of Secondly, to on efficient platform, very using Difficulty] is because their

are engagement certain arrive Trip.com’s normally, our customer, attracts And help for attracts users and level because partners site, their help is only in managers enhancement attractions, customers, we these our to up-sell [ph] to we one to have as area seen able our region. able on high-quality they sales customers And and customers sales site. not enhancing our on normally product be we to maximize of based and our able high-end, well. thirdly is products. when content What the product the to of we in are of the user’s geographic more on certain will example, For engagement is to understanding the the in sell

on If site on our year. our use are do engagement, sites the to interest on it’s every the also time you for significant. look And spend products very product sites, research different and they people cross-buy to our increasing user at

and their listen So, these and able are always to through we to first customers help the the in if landscape. will strengths we weather to put interest our competitive we have. you. also be our the And truly storm, partners stand out Thank

Thank you.

Instructions] Gong Thank Citi. from you [Operator next proceed. Brian Our comes questions. the from Please question for

taking my for question. management Thanks

overseas to follow-up a Just our business.

in in the Thank international about of year? How change environments And or you think on will recovery challenges our macro your you. quarter the the how some environment many be markets. we seen growth macro what should fourth the think next And have changing impact the in spending? strategy? do your brands We and will

you. Thank Yes.

as strong the – of our didn’t the the impact maybe have region. pretty the there just region APAC compared regard in of earlier, international too product well our see the in as as marketing improve – with because a both recognitions as started offering because reopen spending, we continuously so I With very platform, is platform early we long to base as also sales growth regions. some will I very offerings but European far, actually, and healthy APAC e-mail much has are of as efficient think we are macro product those we as actually, explained region, we our small, initiatives notice overseas comparable headwinds well the we development we continuously growth to well we market, before, the in confident And very marketing in the as can – area U.S. although as overseas we a very the still in achieve on very and the and and in can to brand are stage Our a – sales environment the

year, we pent-up very think opportunity a good this next to in have catch demand the in the region. we recoveries So,

growth Thank still market. the you. are we continuously our on international for overall, quite So, optimistic

the questions. you for Thank

from Yulin the of comes question proceed. side next Our Zhong from Haitong International. Please

And was the company’s strategy in near-term? color especially share I you process updates, you. what content? could on on if management. Thank the Thanks would your expectations Hi. and your How you more wondering strategy

hear I clearly. the strategy? content for Are it Sorry, you asking didn’t

expectations? wondering COVID and process what you would content lighting your the was how strategy the I would Right. post be

you. Thank Okay.

So, the the the things provide preference our eat content the strategy inspire evolved past see from behaviors unique to discover goal the recommendations to travel most have their global and decision-making world. empower over and credible to of process. actually, to travelers travelers do around X our years It the of to is

quarter, of to UGC content and third by we creators of amount our the quarter, In the in grow generation continuously improve and third content average daily increased to continued the capabilities. the engagement year-over-year. So, user number year-over-year, content XX%

were first year-over-year, For and by the of in destinations-related content increased user by this year. compared example, average being content platform XX% duration yes, more same September, generated year. – half by to also when XX% to of number users engagement, the period increased view With conversion The there XX% our XX%. the in from to viewed average the last of the regard our about per rates X% increased QX to on content by contents user

suitable believe go will As topics build and users is going of actually is particular This Trip.com, authenticity accessed accessible list can Thank no actually viral by service content trustworthy recommendations as enable of on easily creation why search providing and closed-loop remain content be ecosystem one-stop you. we forward. Ctrip always form instead model professional, there will features. create to a through Trip.Best with relatable most focused travel we credibility a List, and content, travel which that pursuing have viral, and plus the we of easy of that bucket

the back Thank call the to would questions. you company the for remarks. I to for closing With turn that, from like Michelle Qi

us Thank joining everyone for you. Thanks today.

and look forward webcast on the day. and earnings a fourth call speaking on have investors.trip.com. to Thank find the of quarter call. XXXX you of transcript We can with today’s You you good the

much. very you Thank

Thank in you conclude conference. participation your for program. the does today’s This

You may disconnect. now