Good tour operator report Trip.com shares have risen in price
A major Chinese tourist operator Trip.com Group Limited (TCOM), reported revenue above analysts’ expectations for the first quarter. The news was one driver of the growth of the company’s shares by almost 11% at the auction on June 28. The stock ended trading on June 29 at $27.9, having risen by another 2%.
Profit Trip.com in the first quarter remained virtually unchanged year-on-year and amounted to $649 million. However, this result is more than $70 million higher than Wall Street forecasts. In addition, the company managed to significantly reduce the loss from $0.05 in the first quarter of last year to $0.01 in the previous reporting quarter, which analysts also assessed positively. According to management, the main driver of the growth of Trip.com has been the restoration of domestic tourism and the interest of Chinese residents in longer trips involving overnight accommodation.
The company noted that the number of hotel reservations increased by 20% yearly, and airline reservations on global platforms increased by 270% yearly. Strong results Trip.com The loosening of COVID-19-related restrictions in China, which began a few months ago because of a worsening disease spread, also helped. People in the area had more chances to move around, so they went on vacation.
Thus, the rapid growth of quotations could be influenced not only by the quarter results improvement in the conjuncture of the tourism industry in China. Trip.com — a large company that is a well-known tourist operator with extensive experience and also owns services for booking hotels, air tickets, cars, and tourist services. Before the coronavirus pandemic, Trip.com reported 400 million customers on its platforms worldwide.
The past two years have slightly adjusted this amount due to covid restrictions. However, now the company has the opportunity not only to restore its previous activity but also to attract additional users. On the platform Trip.com, there is information about 1.2 million hotels in 200 countries and regions.
