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Ctrip lost 4.251 billion yuan in the first three fiscal quarters, and its subsidiary Qunar still loses money

Date: 2020-12-10

Qunar data shows that the price of air tickets in 2020 will drop by about 17% year-on-year, and the low price will continue until 2021.

On December 2, Ctrip (TCOM.NASDAQ) released its 2020 third fiscal quarter financial report, showing that in the third fiscal quarter, Ctrip achieved revenue of 5.464 billion yuan and net profit of 1.578 billion yuan, becoming the first profitable fiscal quarter in 2020, but The first three fiscal quarters were still at a loss, and the accumulated net loss in the first three fiscal quarters was 4.251 billion yuan. On the same day, Chen Gang, CEO of Qunar.com, a subsidiary of Ctrip, stated at a strategy conference that Qunar expects to be profitable in 2020.

According to Qunar.com's data, the tourism industry in 2020 was severely affected by the epidemic, resulting in a sharp decline in tourists. However, since June 2020, Qunar.com has achieved a breakeven for the month. In August, the number of domestic air tickets bookings increased for the first time. In September , The number of domestic hotel reservations surpassed the same period in 2019, and the travel demand of tourists was released in October. This all benefited from the effective containment of the epidemic in China and a strong recovery of domestic business. Chen Gang said that at the current rate of recovery, the company will be profitable throughout the year by the end of December.

Qunar's data shows that the current growth of Qunar's new users has been the same as in 2019. Among them, the post-95 users accounted for as high as 40%. Nearly half of the users are from third-tier cities and below. There are millions of users since 2020. The user bought the first ticket in his life online at Qunar, reaching a new high in the past five years.

In addition, Qunar stated that about 629 million people will travel in 2021, an increase of 50% over 2020.

However, with the increase of new users, Qunar's air ticket prices have hit a record low in 5 years. Qunar's data shows that in 2020, air ticket prices will drop by about 17% year-on-year, and the low price will continue until 2021.