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China’s largest online travel agency Trip.com’s shares hit a new record high in Hong Kong after its net profit surged over six times in 2023 driven by the country’s reviving travel demand.
Net profit reached 10 billion yuan ($1.4 billion) 2023, surging 614% from a year earlier, and revenue soared 112% to 44.5 billion yuan, as pent-up travel demand was released after China ended the Covid-19 pandemic restrictions.
Trip.com’s shares surged as much as 8% to hit HK$357.8 at one point, marking a new record high, before closing 7.3% higher at HK$355.6.
“In 2023, China embarked on a significant journey of reconnecting with the world driven by the rising travel sentiment,” said Executive Chairman James Liang. “Our global business also experienced substantial growth fueled by our expanded market presence.
“With a continued focus on globalization and AI innovations, we are confident in building upon the success of 2023 and further explore the opportunities ahead.”
“The global travel industry has shown remarkable resilience and is poised to sustain its growth trajectory,” she said.
In the fourth quarter alone, revenue surged 105% year over year to 10.3 billion yuan, but its net profit declined to 1.3 billion yuan from 2.1 billion yuan a year earlier.
Trip.Com’s outbound hotel and air reservations recovered to more than 80% of their pre-pandemic level of 2019 in the final quarter, compared with a 60% industry recovery in international air passenger volume, it noted.
Bookings on Trip.Com’s global online travel agent platform jumped over 70% in the quarter from a year ago.