Trip.com Group said the company's China domestic business continues to show strong recovery momentum. China domestic air ticketing business achieved positive year-over-year growth for the third quarter of 2020.
China domestic hotel reservations achieved positive growth, with mid-to-high end domestic hotel reservations reaching double digit year-over-year growth exiting the third quarter of 2020.
The Company's results for the third quarter of 2020 showed significant sequential improvement from the previous quarter.
Net revenue for the third quarter of 2020 was RMB5.5 billion (USD 805 million), representing a 48% decrease from the same period in 2019 and a 73% increase from the previous quarter.
"In the third quarter of 2020, the global travel industry continued to be under significant pressure from the COVID-19 pandemic. However, in China, we have already seen most of our major business segments return to pre-COVID level of activities in recent months. The speedy recovery in our China market demonstrated once again the strong resilience of the travel industry," said James Liang, Executive Chairman. "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."
For the third quarter of 2020, Trip.com Group reported net revenue of RMB5.5 billion (USD 805 million), representing a 48% decrease from the same period in 2019. Net revenue for the third quarter of 2020 increased by 73% from the previous quarter.
Accommodation reservation revenue for the third quarter of 2020 was RMB2.5 billion (USD 365 million), representing a 40% decrease from the same period in 2019, and a 98% increase from the previous quarter, primarily due to the recovery of China domestic market.
Transportation ticketing revenue for the third quarter of 2020 was RMB1.9 billion (USD 280 million), representing a 49% decrease from the same period in 2019, and a 66% increase from the previous quarter, primarily due to the recovery of China domestic market.
Packaged-tour revenue for the third quarter of 2020 was RMB326 million (USD 48 million), representing an 80% decrease from the same period in 2019, and a 151% increase from the previous quarter, primarily due to the easement of cross-region travel restrictions in China since mid-July.
Corporate travel revenue for the third quarter of 2020 was RMB282 million (USD 42 million), representing a 16% decrease from the same period in 2019, and a 74% increase from the previous quarter, primarily due to the recovery of China domestic market.
Net income attributable to Trip.com Group's shareholders for the third quarter of 2020 was RMB1.6 billion (USD 234 million), compared to net income attributable to Trip.com Group's shareholders of RMB793 million in the same period in 2019 and net loss attributable to Trip.com Group's shareholders of RMB476 million in the previous quarter.
As of September 30, 2020, the balance of cash and cash equivalents, restricted cash, short-term investment, held to maturity time deposit and financial products was RMB66.1 billion (USD 9.7 billion).
As a result of the continued negative impact due to COVID-19 in the fourth quarter of 2020, the Company expects net revenue to decrease by approximately 37% to 42% year-over-year for the fourth quarter of 2020.
