Trip.com Group has shared that its Chinese inbound travel business has received a major boost in the second quarter (Q2) of this year.
Talking about the same during the company Q2's earnings call, James Liang, Executive Chairman, Trip.com Group, said, "We are witnessing an increasing interest from global travellers in visiting China. This heightened interest has led to remarkable growth in our inbound travel segment with a nearly 200% surge in bookings in the first half of 2024 compared to the same period last year. Inbound travel now accounts for more than 25% of our international OTA platform's revenue, up from the teens level prior to COVID."
According to the company, visitors from visa-free countries have surged by an impressive 190% over the same period.
"While Beijing, Shanghai, Guangzhou and Xinjiang remain popular destinations, foreign visitors are increasingly exploring cities such as Zhangjiajie, Xi'An, Chengdu and Harbin," said Liang. He also mentioned that the fact China continues to address entry challenges for foreign visitors is helping the industry. This is via mutual visa-free agreements as well as unilateral visa-free policy for citizens from certain countries.
Plus, cities like Beijing, Shanghai, Guangzhou, and Chengdu are letting travellers from certain countries to stay up to 72 hours or 144 hours (depending on the city) if they are in transit to a third country or region. And in the case of Hainan Province, travellers from certain countries can stay visa-free for up to 30 days for destinations like Haikou and Sanya. At the same time, a section of the industry also believes that China has to do a lot more to support inbound travellers. In its recent report, ITB China highlighted that China can focus on branding campaigns, emphasising on diverse and rich experiences, modern infrastructure and scenic landscapes. In addition to this, the authorities need to focus on offering assurance about safety and security when travelling to China.
As for outbound travel from China, the team shared that outbound hotel and air reservations recovered to 100% of the pre-COVID level for the same period in 2019, surpassing the industry-wide recovery rate of over 70% in terms of international flight capacity. The APAC region remains the top choice for Chinese travellers with visa-free destinations such as Singapore, Thailand and Malaysia seeing a strong resurgence.
Within China, Liang mentioned that travellers are now seeking out hidden gems in lesser known Tier 2 and 3 cities.
The company is collaborating with 22 local airports to form a marketing alliance in order to strengthen connectivity between regional and mainline flights.
Total revenue of the company's international OTA brand has increased by around 70% year over year. "This includes a notable 76% increase in revenue from the APAC region," said Liang.
Net income for Q2 was RMB3.9 billion, compared to RMB648 million for the same period last year.
Counting on data
As an online travel group, Trip.com Group is counting on data in its repository. From keeping an eye on which destinations are being searched for as well as what to recommend on its platform, the team at Trip.com is looking at artificial intelligence to serving what travellers are looking for.
"As international travellers explore the diverse landscapes of China and Chinese travellers venture to overseas destinations, the demand for tailored inspirations and personalised recommendations is growing. Common questions about must-do activities, must-try bites and must-visit attractions highlight the need for reliable guidance," acknowledged Liang. He added that data analysis helps in coming up with apt recommendations and customised itineraries that align with a traveller's interests. The company offers personalised home pages based on user profiles or past transactions and displays travel products and services based on geo-location.
Internally, the team is also relying on AI to evaluate trends. For instance, Liang mentioned that the company's AI-powered TripTrends data indicates where travellers are off to. "...outbound travel remained popular and continued to drive growth in the travel market with strong interest in popular APAC destinations like Japan and Thailand, major international events such as the European Soccer Cup and the Olympics, have also attracted a diverse array of travellers to Europe," shared Liang. "Interestingly, our AI-powered TripTrends data reveals that the introduction of new flight routes can significantly increase travellers' interest in those specific destinations. Over the past three months, we have observed that new flight routes have doubled or more than doubled search volumes versus the corresponding destinations."
He also expressed confidence in travellers undertaking trips as per AI-driven where-to-go list.
Liang said these lists pave the way for travellers to choose best experiences a destination has to offer, including not only hotels and attractions, but also other choices such as restaurants and nightlife.
He also referred to data related to popular travel topics and events. These are also based on searches done by users.
"These trends indicate that more individuals are now directing their discretionary income towards enriching travel experiences and premium services," said Liang.
Mobile-first
Liang shared that as a part of Trip.com Group's mobile-first strategy, currently more than 65% of transactions on the group's international OTA platform are conducted through mobile platform.
In Asia, this figure climbs even higher to around 75%, building on the company's success in the APAC region, he said.
The group has integrated several AI-powered tools to enhance user experience on its mobile platforms. These include Trip.Best, which offers tailored recommendations for top accommodations, dining options and activities around the world.
(Trip.com Group is the member of IMTA)
Editor Ⅰ: Zhang Wenwen
Editor Ⅱ: Wu Dan
Editor Ⅲ: Liu Guosong
