Trip.com Group Ltd (TCOM) 2024 Q3 法說會逐字稿

(audio in progress) [Good morning and welcome to Trip.com Group's] (added by company after the call) third quarter of 2024 earnings conference call. Joining me today on the call are Mr. James Liang, Executive Chairman of the Board; Ms. Jane Sun, Chief Executive Officer; and Ms. Cindy Wang, Chief Financial Officer.

（音訊正在進行中）[早上好，歡迎來到 Trip.com 集團]（由公司在電話會議後新增）2024 年第三季財報電話會議。今天與我一起參加電話會議的是董事會執行主席梁建章先生；孫潔女士，執行長；王欣迪女士，財務長。

During this call, we will discuss our future outlook and performance, which are forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today.

在本次電話會議中，我們將討論我們的未來前景和業績，這些是根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，我們的結果可能與今天表達的觀點有重大差異。

A number of potential risks and uncertainties are outlined in Trip.com Group's public filings with the Securities and Exchange Commission. Trip.com Group does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

Trip.com 集團向美國證券交易委員會提交的公開文件中概述了一些潛在的風險和不確定性。除適用法律要求外，攜程集團不承擔更新任何前瞻性聲明的義務。

James, Jane and Cindy will share our strategy and business updates, operating highlights and financial performance for the third quarter of 2024 as well as the outlook for the fourth quarter of 2024. After the prepared remarks, we will have a Q&A session.

James、Jane 和 Cindy 將分享我們的策略和業務更新、2024 年第三季的營運亮點和財務業績以及 2024 年第四季的展望。在準備好的發言之後，我們將進行問答環節。

With that, I will turn the call over to James. James, please.

這樣，我就把電話轉給詹姆斯。詹姆斯，請。

Thank you, Michelle, and thanks everyone for joining us on this call today. In the third quarter of 2024, the China travel market demonstrated remarkable resilience with strong performance in both domestic and cross-border travel. This surge in demand reflects a recovery in consumer confidence and a growing enthusiasm for travel.

謝謝米歇爾，也謝謝大家今天加入我們的電話會議。2024年第三季度，中國旅遊市場展現出顯著的韌性，國內旅遊和跨境遊均表現強勁。需求激增反映出消費者信心的復甦和旅行熱情的不斷增長。

The National Day holiday clearly highlighted this momentum with passenger trips and travel bookings surpassing pre-pandemic levels. As consumer confidence rises, the demand for diversified and personalized travel experiences has become increasingly evident. During the holiday, our Trip.Best Ranking revealed notable user preferences and significant growth across themes such as family travel, food, culture, and seasonal specialties. In particular, young people are increasingly prioritizing travel in their spending. This trend is further reflected in the rising demand for concerts, music festivals, exhibitions, and sporting events, which are particularly appealing to this demographic. This summer, the events featured on our Trip.Events list have gained significant traction among younger travelers, highlighting the growing influence of such events on travel preferences. Riding the wave of this trend, we are excited to roll out our "Entertainment+Travel" products. For example, we teamed up with Dunhuang City to host the 2024 Echoing-Sand Mountain and Crescent Lake concert. To make this desert-side concert truly unforgettable, we added a sprinkle of fun with activities like camel riding, sand sliding, and transport packages ensuring customers enjoyed an adventure that went beyond just music.

國慶假期明顯凸顯了這一勢頭，旅客出行和旅行預訂超過了大流行前的水平。隨著消費者信心的增強，多元化、個人化的旅遊體驗需求日益明顯。假期期間，我們的 Trip.Best 排名顯示了顯著的用戶偏好以及家庭旅行、美食、文化和季節性特色菜等主題的顯著增長。特別是，年輕人越來越將旅行作為支出的重點。這一趨勢進一步體現在對音樂會、音樂節、展覽和體育賽事的需求不斷增長，這些對這一人群特別有吸引力。今年夏天，我們的 Trip.Events 清單中的活動在年輕旅行者中獲得了顯著的吸引力，突顯出此類活動對旅行偏好的影響越來越大。順應這一趨勢，我們很高興推出「娛樂+旅遊」產品。例如，我們與敦煌市合作舉辦了2024年響沙山月牙泉音樂會。為了讓這場沙漠音樂會真正令人難忘，我們增加了騎駱駝、滑沙和交通套餐等活動，確保客戶享受到不僅僅是音樂之外的冒險。

As AI plays an increasingly pivotal role in enhancing the travel experience, our innovations not only streamline the planning process, but also offer personalized solutions. In this rapidly evolving landscape, our goal is to make travel more accessible, efficient and enjoyable for everyone. By continuously integrating AI into our services, we aim to empower travelers with smarter and more tailored options.

隨著人工智慧在增強旅行體驗方面發揮越來越重要的作用，我們的創新不僅簡化了規劃流程，還提供了個人化的解決方案。在這個快速發展的環境中，我們的目標是讓每個人的旅行變得更加便捷、有效率和愉快。透過不斷將人工智慧融入我們的服務中，我們的目標是為旅行者提供更聰明、更量身定制的選擇。

While the advancement of AI revolutionizes the travel industry by enhancing customer experiences and operating efficiency, it is equally crucial to develop robust ESG practices to ensure sustainable and ethical growth within the sector.

雖然人工智慧的進步透過提高客戶體驗和營運效率為旅遊業帶來了革命性的變化，但制定穩健的 ESG 實踐以確保該行業的可持續和道德成長也同樣重要。

Over the years, we have diligently framework to embed ESG principles into every aspect of our operations and actively promote ESG adoption across the industry. Beyond our commitment to environmental stewardship, our ESG philosophy centers on people, focusing on creating jobs, fostering an inclusive and diverse workplace, and raising service standards to enhance the experience for customers. This approach benefits the broader community and promotes sustainable economic development. We are honored to receive the Forbes China best AI-driven and Digitized Employer of the Year 2024 award, a recognition that celebrates our efforts and motivates us to continue advancing our ESG initiatives.

多年來，我們努力建立框架，將 ESG 原則嵌入到我們營運的各個方面，並積極推動全行業採用 ESG。除了我們對環境管理的承諾之外，我們的 ESG 理念以人為本，注重創造就業機會、培育包容性和多元化的工作場所以及提高服務標準以增強客戶體驗。這種做法有利於更廣泛的社區並促進永續的經濟發展。我們很榮幸獲得福布斯中國 2024 年度最佳人工智慧驅動和數位化雇主獎，這項認可表彰了我們的努力，並激勵我們繼續推動 ESG 舉措。

In conclusion, the China travel market in Q3 has demonstrated strong resilience, driven by growing consumer confidence and robust demand across both domestic and international segments. As the travel industry continues to evolve, we are confident that technological advancements and favorable market conditions will drive sustained growth and shape the future of global travel.

總而言之，在消費者信心不斷增強以及國內和國際市場強勁需求的推動下，第三季度中國旅遊市場表現出強勁的韌性。隨著旅遊業的不斷發展，我們相信技術進步和有利的市場條件將推動持續成長並塑造全球旅遊業的未來。

With that, I will turn the call over to Jane for operational highlights.

這樣，我會把電話轉給 Jane，以了解營運要點。

Thank you, James. Good morning, everyone.

謝謝你，詹姆斯。大家早安。

As a quick overview, our net revenue in Q3 grew by 16% year-over-year. We are pleased to see that travel consumption in China remains resilient and delivered strong performance as summer vacation and the National Day holiday.

快速概覽一下，我們第三季的淨收入年增 16%。我們很高興地看到，中國的旅遊消費保持韌性，並在暑假和國慶假期中表現強勁。

Outbound travel continues to experience strong growth during this peak season of the year. During the quarter, International flight market restored to about 80% of the pre-pandemic level. Our outbound hotel and air ticket bookings recovered to 120% compared with 2019 levels, continuing to outperform the industry by 40%.

今年的旺季，出境旅遊持續強勁成長。本季度，國際航班市場恢復至疫情前約80%的水準。出境飯店和機票預訂量較2019年恢復120%，持續領先產業40%。

Japan remains the top destination for Chinese outbound travelers, closely followed by other APAC regions. Additionally, there is a growing interest in long-haul destinations such as Europe, the Americas, Oceania and the Middle East. Notably, citizens from higher-tier cities are eager to expand their travel radius and explore more distant destinations, while those from lower-tier cities are beginning to venture beyond national borders and emerging as a new growth driver in outbound travel. During the National Day holiday travel bookings from Tier 4 and 5 cities surged by 100% and 300%, respectively.

日本仍然是中國出境旅客的首選目的地，緊隨其後的是其他亞太地區。此外，人們對歐洲、美洲、大洋洲和中東等長途目的地的興趣也日益濃厚。值得注意的是，一線城市的居民渴望擴大出行半徑，探索更遠的目的地，而低線城市的居民開始走出國門，成為出境旅遊的新增長點。國慶假期期間，來自四、五線城市的旅遊預訂分別激增100%和300%。

In the domestic Chinese market, travel demand remains robust, with travel patterns becoming more evenly distributed across the country. It is encouraging to see travelers increasingly exploring inland and lesser-known destinations, contributing to the further development of local tourism.

在中國國內市場，旅遊需求依然強勁，全國各地旅遊模式分佈較為平均。令人鼓舞的是，遊客越來越多地探索內陸和鮮為人知的目的地，為當地旅遊業的進一步發展做出了貢獻。

To help our partners capitalize on these opportunities and promote sustainable growth within the industry, we are committed to innovating our product offerings in close collaboration with them. By developing hotel packaged deals, we can explore various use cases and address emerging customer needs. Through co-branding and mutual membership initiatives, we aim to enhance value for customers and cultivate stronger brand loyalty. Additionally, we support domestic hotels in gaining visibility among inbound travelers, driving demand from international markets. With our global network, suppliers can effortlessly reach both domestic and global audiences, maximizing their exposure and impact through integrated marketing efforts on our platform.

為了幫助我們的合作夥伴利用這些機會並促進產業內的永續成長，我們致力於與他們密切合作，創新我們的產品。透過開發酒店套餐優惠，我們可以探索各種用例並滿足新出現的客戶需求。透過聯合品牌和相互會員計劃，我們旨在提高客戶價值並培養更強的品牌忠誠度。此外，我們也支持國內飯店在入境遊客中獲得知名度，從而推動國際市場的需求。透過我們的全球網絡，供應商可以輕鬆接觸國內和全球受眾，透過我們平台上的整合行銷工作最大限度地提高曝光率和影響力。

On the international front, our global businesses continue to witness strong momentum in Q3. Air ticket and hotel bookings on our international OTA platform rose by over 60% year-over-year, with bookings from the APAC region, increasing by more than 70%. Our international OTAs has become the most downloaded OTA app in many markets, including Hong Kong, Macau, Taiwan, South Korea, Singapore, Malaysia and Thailand, reflecting the outstanding results we have achieved and our strengthened presence across the APAC region.

在國際方面，我們的全球業務在第三季持續保持強勁勢頭。我們國際OTA平台上的機票和飯店預訂量年增超過60%，其中來自亞太地區的預訂量成長超過70%。我們的國際 OTA 已成為許多市場下載次數最多的 OTA 應用程序，包括香港、澳門、台灣、韓國、新加坡、馬來西亞和泰國，這反映了我們取得的出色業績以及我們在亞太地區的影響力不斷增強。

Building on our success as downloaded OTA app in several APAC markets, our global development efforts are further enhancing inbound travel, as these regions are also major sources of international visitors. In Q3, inbound hotel bookings on our platform increasing by around 100%, reflecting a heightened interest in travel China among global travelers. Notably, 25% of total inbound travelers this year have visited China more than once, demonstrating the country's appeal to repeat visitors eager to explore its rich culture and lifestyle.

基於我們在多個亞太市場下載 OTA 應用程式的成功，我們的全球開發工作正在進一步增強入境旅遊，因為這些地區也是國際遊客的主要來源。第三季度，我們平台上的入境飯店預訂量增加了約100%，反映出全球旅客對中國旅遊的興趣日益濃厚。值得注意的是，今年入境遊客中有 25% 不只一次訪問中國，這顯示中國對渴望探索其豐富文化和生活方式的回頭客的吸引力。

To capitalize on this opportunity, we offer a range of services designed to enhance the travel experience. International visitors can directly book ticket for over 2,000 attractions and access more than 8,000 day and half-day tour options available on our platform. We also provide convenient currency exchange services and collaborate with Internet Service Providers to offer eSIM card solution, ensuring travelers stay connected. At popular attractions like the Great Wall and the Terracotta Warrior Museum, we have implemented ticket vending check-in machines customized for international visitors, allowing for expedite entry. Additionally, we offer complementary city tours for international travelers with layovers exceeding eight hours at Shanghai Pudong International Airport, ensuring their every moment in China is memorable.

為了利用這個機會，我們提供一系列旨在增強旅行體驗的服務。國際遊客可以在我們的平台上直接預訂 2,000 多個景點的門票，並享受 8,000 多個一日遊和半日遊選擇。我們也提供便利的貨幣兌換服務，並與網路服務供應商合作提供 eSIM 卡解決方案，確保旅客保持聯繫。在長城、陶俑博物館等熱門景點，我們設置了專為國際遊客量身訂製的自動售票機，方便遊客快速入園。此外，我們也為在上海浦東國際機場停留超過八小時的國際旅客提供免費城市旅遊，確保他們在中國的每一刻都令人難忘。

With the continuous resumption of flight capacity, improvement in entry convenience and a strengthened inbound supply chain, the outlook for the inbound travel market is optimistic. We look forward to contributing to the industry development and assisting our partners in seizing these opportunities.

隨著航班運力的不斷恢復、入境便利性的改善以及入境供應鏈的強化，入境旅遊市場前景樂觀。我們期待為產業發展做出貢獻，並協助我們的合作夥伴抓住這些機會。

We see that the travel demand among senior population continues to show significant potential and growth. In the first three quarters of this year, travel bookings from users aged 50 and above have risen by 26% compared to the same period last year, outpacing growth in other age groups. Notably, the 61 - 65 age cohort has experienced the most substantial increase, with an impressive rise of 58%. More than 70% of transactions were booked directly by senior users through our "Old Friends Club" channel, while approximately 20% were booked by family members using the "Family Card" function.

我們看到老年人口的出行需求持續展現出巨大的潛力和成長。今年前三季度，50歲以上用戶的旅遊預訂量年增26%，增幅超過其他年齡層。值得注意的是，61 - 65 歲年齡層的增幅最為顯著，增幅高達 58%，令人印象深刻。超過70%的交易是老年用戶透過「老友會」管道直接預訂的，約20%的交易是家庭成員透過「家人卡」功能預訂的。

Over half of the silver generation travelers come from Tier 1 and emerging Tier 1 cities. With a higher level of disposable income, this cohort exhibit a greater propensity for air travel and prefer to stay in high-star hotels with per capita spending 30% above the group average. They also show a preference of customized trips over traditional group tours, usually with the theme of natural sightseeing and cruise vacations, seeking flexible, relaxing and enjoyable experiences. We see immense potential in tailoring nature and culture-themed trips to capture the travel demand of this demographic.

超過一半的白銀一代旅行者來自一線城市和新興一線城市。由於可支配收入水平較高，該群體表現出更大的航空旅行傾向，更喜歡入住高星級酒店，人均支出比群體平均水平高出30%。相對於傳統跟團遊，他們更偏好客製化遊，通常以自然觀光、郵輪度假為主題，追求靈活、輕鬆、愉悅的體驗。我們看到量身定制以自然和文化為主題的旅行來滿足這一人群的旅行需求的巨大潛力。

Additionally, seniors are becoming active contributors to online content, comprising 7% of creators and generating over 10% of all travel-related materials, with their output increasing by nearly 40% this year. We anticipate that this increased content output will help inspire fellow senior travelers and bolster their confidence in our Old Friends Club services, thereby amplifying flywheel effect.

此外，老年人正在成為線上內容的積極貢獻者，佔創作者的 7%，並產生了所有旅行相關材料的 10% 以上，今年他們的產出增長了近 40%。我們預計，內容產出的增加將有助於激勵其他老年旅行者，增強他們對我們老友俱樂部服務的信心，從而放大飛輪效應。

Travel is a powerful tool for addressing many of the world's challenges. It creates dignified livelihoods and job opportunities while driving economic investments that benefit the environment. Representing 10% of global GDP and generating over 300 million jobs, the travel industry plays a crucial role in fostering global prosperity. Trip.com Group has been instrumental in supporting this growth over the past 25 years, providing exceptional services to millions of travelers and creating extensive business opportunities for our partners.

旅行是解決世界上許多挑戰的強大工具。它創造有尊嚴的生計和就業機會，同時推動有利於環境的經濟投資。旅遊業佔全球 GDP 的 10%，創造了超過 3 億個就業崗位，在促進全球繁榮方面發揮著至關重要的作用。Trip.com 集團在過去 25 年中為支持這一增長發揮了重要作用，為數百萬旅行者提供卓越的服務，並為我們的合作夥伴創造廣泛的商機。

To enhance travel experiences, we are dedicated to continuously improving service quality and are always prepared to assist with any customer issues, ensuring a hassle-free journey. Our customer service team is just 30 seconds ready to address concerns and facilitate smooth trips, allowing travelers to fully immerse themselves in their experiences and destinations.

為了提升旅行體驗，我們致力於不斷提高服務質量，並隨時準備協助解決任何客戶問題，確保旅程無憂。我們的客戶服務團隊只需 30 秒即可解決問題並促進順利旅行，讓旅客充分沉浸在自己的體驗和目的地中。

For our partners, we drive product innovation, explore new use cases seize emerging opportunities while adapting to the evolving travel demands of inbound travelers, the silver generation and the youth who seek entertaining travel experiences. Additionally, we have established 34 country retreats across China, generating employment for over 20,000 people, with 80% of recruitment sourced from local hires. Our initiatives have also boosted local income from farm products and regional goods by RMB30 million, contributing positively to rural revitalization.

對於我們的合作夥伴，我們推動產品創新，探索新用例，抓住新興機遇，同時適應入境旅客、白銀世代和尋求娛樂旅行體驗的年輕人不斷變化的旅行需求。此外，我們還在全國建立了34個鄉村靜修中心，為超過20,000人創造了就業機會，其中80%的招募來自當地員工。帶動當地農產品和土特產收入3000萬元，為鄉村振興做出了積極貢獻。

Travel is a tool for economic growth, a bridge to understanding and the path toward a peaceful world. By fostering economic development and job creation, Trip.com Group makes a significant impact on both local communities and the global economy.

旅行是經濟成長的工具、理解的橋樑以及通往和平世界的道路。透過促進經濟發展和創造就業機會，攜程集團對當地社區和全球經濟產生了重大影響。

In summary, our strong performance across various travel segments highlights the resilience of travel consumption and the industry's potential. With a bright outlook ahead, we remain committed to contributing to providing excellent services to our customers, bringing robust business to our partners, and creating valuable job opportunities for young people.

總而言之，我們在各個旅遊領域的強勁表現凸顯了旅遊消費的彈性和產業的潛力。展望光明的未來，我們將繼續致力於為客戶提供卓越的服務，為合作夥伴帶來強勁的業務，並為年輕人創造寶貴的就業機會。

With that, I will now turn the call over to Cindy.

現在，我將把電話轉給辛蒂。

Thanks Jane. Good morning, everyone.

謝謝簡。大家早安。

For the third quarter of 2024, Trip.com Group reported a net revenue of RMB15.9 billion, representing a 16% increase from the same period last year and 24% increase from the previous quarter, primarily due to performance in the travel market during the summer and the Golden Week holiday.

2024年第三季度，攜程集團淨營收為人民幣159億元，年增16%，季增24%，主要得益於2024年旅遊市場的表現。

Accommodation reservation revenue for the third quarter was RMB6.8 billion, representing a 22% increase year-over-year and a 32% increase quarter-over-quarter. Outbound hotel bookings have exceeded the 2019 level.

第三季住宿預訂收入為人民幣68億元，較去年同期成長22%，較上季成長32%。出境飯店預訂量已超過2019年水準。

Our domestic and international hotel bookings have also seen robust growth. Transportation ticketing for the third quarter was RMB5.7 billion, representing a 5% year-over-year and a 16% increase quarter-over-quarter.

我們的國內和國際飯店預訂量也出現強勁成長。第三季交通票務收入為57億元人民幣，較去年同期成長5%，較上季成長16%。

Outbound air ticket bookings have surpassed the 2019 level with our domestic air business the market and international air business experiencing robust growth. Packaged tour revenue for the third quarter was RMB1.6 billion, representing a 17% increase year-over-year and a 52% increase quarter-over-quarter. The year-over-year growth was mainly driven by outbound packaged tour, which has increased by triple digit.

出境機票預訂量超過2019年水平，國內航空市場和國際航空業務強勁成長。第三季跟團旅遊收入為人民幣16億元，較去年成長17%，較上季成長52%。年比成長主要由出境跟團遊推動，出境旅遊成長了三位數。

Corporate travel revenue for the third quarter was RMB656 million, representing an 11% increase year-over-year and a 4% increase quarter-over-quarter. This was driven by more companies adopting our managed corporate travel services.

第三季商旅營收為人民幣6.56億元，年增11%，季增4%。這是由於越來越多的公司採用我們的管理商務旅行服務所推動的。

Excluding share-based compensation charges, adjusted product development expenses for the third quarter increased by 3% year-over-year. Adjusted G&A expenses for the third quarter increased by 5% year-over-year mainly due to increase in personnel-related expenses.

不計入股權激勵費用，第三季調整後的產品開發費用較去年同期成長3%。第三季調整後的一般及行政費用年增 5%，主要是由於人事相關費用的增加。

Adjusted sales and marketing expenses for third quarter increased by 20% from the previous quarter and increased by 23% from the same period last year. The increase was primarily driven by heightened marketing investments, particularly for our international OTA platform, to support our global business development initiatives.

第三季調整後的銷售和行銷費用較上季成長20%，比去年同期成長23%。這一成長主要是由於行銷投資的增加，特別是我們的國際 OTA 平台的投資，以支持我們的全球業務發展計劃。

Adjusted EBITDA was RMB5.7 billion for the third quarter compared with RMB4.6 billion in the same period last year and RMB4.4 billion in the previous quarter.

第三季調整後 EBITDA 為 57 億元，去年同期為 46 億元，上一季為 44 億元。

Diluted earnings per ordinary share and per ADS were RMB9.93 or USD1.42 for the third quarter of 2024. Excluding share-based compensation charges and fair value changes of equity security, investments and exchangeable senior notes, non-GAAP diluted earnings per ordinary share and per ADS were RMB8.75 or USD1.25 for the third quarter.

2024 年第三季每股普通股和每股美國存託股票的稀釋收益為 9.93 元人民幣或 1.42 美元。不包括股權激勵費用以及股權證券、投資和可交換優先票據的公允價值變動，第三季非公認會計準則稀釋後每股普通股和每股美國存託股收益為人民幣8.75元或1.25美元。

As of September 30, 2024, the balance of cash and cash equivalents, restricted cash, short-term investments held maturity time deposits and financial products was RMB86.9 billion or USD12.4 billion.

截至2024年9月30日，現金及現金等價物、限制性現金、持有到期定期存款的短期投資及理財產品餘額為人民幣869億元（折124億美元）。

In conclusion, our company solid performance this quarter, and we are encouraged by the strong travel market activity during the off-peak season. The robustness of travel consumption highlights the industry's resilience. Looking ahead, we will continue to innovate and collaborate with our partners to capitalize on new market opportunities with an aim of delivering sustained value to our shareholders.

總而言之，我們公司本季業績穩健，淡季期間強勁的旅遊市場活動令我們感到鼓舞。旅遊消費的強勁凸顯產業的韌性。展望未來，我們將持續創新並與合作夥伴合作，利用新的市場機遇，為股東創造持續價值。

With that, operator, please open the line for questions.

那麼，接線員，請開通提問線路。

(Operator Instructions) Yang Liu, Morgan Stanley.

（操作員指示） Yang Liu，摩根士丹利。

Congratulations on the solid results. My question is could you please provide some insight into your recent performance following the National Day holiday? Additionally, what should investors expect for 2025?

祝賀取得了紮實的成果。我的問題是，您能否介紹一下您最近國慶假期後的表現？此外，投資人對 2025 年應該有何期待？

Thank you. After the National Day holiday, we observed that the China travel market is generally the normal seasonality. On a year-over-year basis, the overall momentum has further strengthened. Industry data shows that what your occupancy rates over the past months have surpassed the last year's level, improving from the lower than 2023 levels in Q3.

謝謝。國慶假期後，我們觀察到中國旅遊市場整體處於正常的季節性。年比來看，整體動能進一步增強。產業數據顯示，過去幾個月的入住率已超過去年的水平，較第三季低於 2023 年的水平有所改善。

This is partly due to a comparatively easier comp base and more travelers choosing to travel during off-peak seasons. At Trip.com Group, we continue to maintain a growth rate that surpasses the industry average. The outbound flight and hotel bookings also maintained very strong year-over-year growth momentum, exceeding 120% of the same period in 2019. And Trip.com's flight and hotel bookings continue to maintain a mid- to high double-digit growth.

部分原因是補償基礎相對容易，並且有更多旅行者選擇在淡季旅行。在攜程集團，我們持續保持超過行業平均的成長速度。出境航班和飯店預訂量也維持了非常強勁的年成長勢頭，超過2019年同期的120%。Trip.com的航班和飯店預訂持續保持中高兩位數成長。

With regard to the colors for the next year, it's actually very challenging for us to make an accurate estimate for the year to come, but we anticipate normalized growth pattern for our China-related business with continued emphasizes on the inbound and outbound cross-border travel. Trip.com brand will continue to maintain a very strong growth momentum and expand our presence in Asia and other global markets. Thank you.

對於明年的顏色，我們對未來一年做出準確的預測其實是非常有挑戰性的，但我們預計中國相關業務將呈現常態化成長模式，繼續強調入境和出境跨境。Trip.com品牌將繼續保持非常強勁的成長勢頭，並擴大我們在亞洲和其他全球市場的影響力。謝謝。

Okay. Thank you.

好的。謝謝。

Brian Gong, Citi.

布萊恩·龔，花旗銀行。

Good morning, James, Jane, Cindy, and Michelle. Congratulations on the solid results. A question regarding hotel side. Yes, how have hotel prices changed rely for your observation and has a growth on China hotel inventory began to slow down? And also, could you please share your thoughts on 2025 outlook?

早安，詹姆斯、珍、辛蒂和米歇爾。祝賀取得了紮實的成果。關於酒店方面的問題。是的，根據您的觀察，飯店價格發生了怎樣的變化？另外，可以分享一下您對 2025 年展望的看法嗎？

Sure. The industry data shows that hotel prices are still below last year's level, but the gap has narrowed from double digits to mid- to-low single digits, in line with our expectations.

當然。行業數據顯示，酒店價格仍低於去年水平，但差距已從兩位數縮小至中低個位數，符合我們的預期。

With regard to the hotel supplier on our platform, it continues to grow, reflecting a long-term market confidence. However, the growth rate has been normalizing.

我們平台上的飯店供應商持續成長，體現了長期的市場信心。然而，成長率已經正常化。

By the end of the third quarter, the numbers of hotels in China listed on our platform was 6-7% higher compared with last year's level. In the longer term period, we believe that the expansion and diversification of travel supplier will significantly contribute to the overall growth of the travel industry. Thank you.

截至第三季末，我們平台上掛牌的中國酒店數量比去年增加了6-7%。從長遠來看，我們相信旅遊供應商的擴張和多元化將對旅遊業的整體成長做出重大貢獻。謝謝。

Thank you.

謝謝。

John Choi, Daiwa.

約翰·崔，大和。

Good morning. Thank you very much for taking my questions. Congratulations on a strong set of results. Could you update on the outbound flight capacity changes for the summer and 4Q? When can we expect the full recovery given some airlines have reduced their flight?

早安.非常感謝您回答我的問題。祝賀取得了一系列強勁的成果。您能否介紹一下夏季和第四季出港航班運力變化的最新情況？鑑於一些航空公司減少了航班，我們什麼時候可以預期全面恢復？

Sure. The outbound flight capacity reached around 80% of the 2019 level in Q3, and exceeded 80% in the fourth quarter. While it is normal for some airlines to reduce flights during the off peak season, we are pleased to see increases in flight from certain airlines and countries, for example, the Canada. And we expect such capacity to further improve in the year to come. Yeah. Thank you

當然。第三季出港航班運力達2019年水準的80%左右，第四季超過80%。雖然一些航空公司在淡季期間減少航班是正常的，但我們很高興看到來自某些航空公司和國家（例如加拿大）的航班增加。我們預計這種能力在未來一年將進一步提高。是的。謝謝

Andre Chang, JPMorgan.

安德烈張，摩根大通。

Thank you management for taking my question. I have a question a little bit different on the recent trend, right? Have there being any changes in travelers overspending? Have the recent stimulus measures boosted the travel spending? Thank you.

感謝管理層回答我的問題。我有一個關於最近趨勢有點不同的問題，對嗎？旅行者的超支情況有什麼改變嗎？最近的刺激措施是否刺激了旅遊消費？謝謝。

Sure. In the third quarter, we are pleased to see that our users' average spending remains quite consistent with last year's level, and is approximately 20% higher than the pre-COVID 2019 levels. With regard to the recent trend, it's maybe too early to determine the direct impact of the recent stimulus measures, but the healthy economic environment should benefit all industries, including travel. Thank you.

當然。在第三季度，我們很高興地看到我們用戶的平均支出與去年的水平相當一致，並且比 2019 年新冠疫情之前的水平高出約 20%。就近期趨勢而言，現在判斷近期刺激措施的直接影響可能還為時過早，但健康的經濟環境應該有利於包括旅遊業在內的所有產業。謝謝。

Boris Van, Bernstein.

鮑里斯·範，伯恩斯坦。

Hello, hi. Good morning management. Thank you for the question opportunity. And congrats on the great quarter. I just wondering if I could ask a little bit more detail on the operational and financial performance for this quarter. So for example, how have the domestic hotels done? How are you doing on our international business, and Skyscanner, et cetera? Thank you.

你好，你好。早安，管理層。感謝您提供提問機會。恭喜這個偉大的季度。我只是想知道是否可以詢問有關本季度營運和財務業績的更多詳細資訊。那麼比如說國內的飯店做得怎麼樣呢？我們的國際業務和 Skyscanner 等業務進展如何？謝謝。

Oh, sure. In third quarter, Trip.com's air and hotel reservations grew robustly by 60% to 70% year-over-year. And the APAC region accounts for over 70% of the total bookings and towards the farthest growth among all the regions. And hotel and air reservations from the APAC region grew by more than 70% year-over-year in the third quarter.

哦，當然。第三季度，攜程的機票和飯店預訂量較去年同期強勁成長60%至70%。亞太地區佔總預訂量的 70% 以上，並且是所有地區中成長最快的。第三季亞太地區的飯店和機票預訂量年增超過 70%。

We're also very glad to see that some steady progress being made in our one-stop travel and mobile app strategy. For example, in the Q3, our hotel-related revenue accounted for more than 40% of Trip.com Group's total revenue with cross-selling from transportation to hotels continued to rise and our mobile app from the top channel for the Trip.com brand, which contribute 65% to 70% of the global orders and over 70% in the APAC region.

我們也很高興看到我們的一站式旅行和行動應用策略取得了一些穩步進展。例如，第三季度，我們的酒店相關收入佔攜程集團總收入的40%以上，從交通到酒店的交叉銷售持續上升，我們的攜程品牌頂級渠道的移動應用程序其訂單量佔全球訂單量的65 %至70%，亞太地區訂單量佔70%以上。

With regard to the financial results, the Trip.com brand contributed around 9% of the group's total revenue, up from 77% in the same period last year. And yeah, we will continuously to make investment in the Trip.com brand in the international market, especially in the APAC region. Thank you.

財務表現方面，攜程品牌貢獻了集團總營收的9%左右，高於去年同期的77%。是的，我們將繼續在國際市場，特別是亞太地區對Trip.com品牌進行投資。謝謝。

Wei Xiong, UBS.

熊偉，瑞銀。

Hi, good morning, management. Thank you for taking my question. And congrats on a very solid quarter. I wanted to follow up on our Trip.com's global business. So could management maybe elaborate your strategy in Asia? How do we plan to gain market share further, given this is a vast market opportunity and potentially we're going to see maybe increasing investments from international peers? Thank you.

嗨，早上好，管理層。感謝您回答我的問題。恭喜本季業績非常強勁。我想跟進我們攜程的全球業務。那麼管理階層能否詳細闡述你們在亞洲的策略？鑑於這是一個巨大的市場機會，我們可能會看到國際同業增加投資，我們計劃如何進一步獲得市場份額？謝謝。

Yeah, Asia is a very important market for us. It represents 50% of the GDP growth. It also represents 50% of the growth for the travel industry. When we focus on our customers, we pay a lot of attention just to make sure we provide the best product and best service to our customers.

是的，亞洲對我們來說是一個非常重要的市場。它佔GDP成長的50%。它還佔旅遊業成長的 50%。當我們專注於客戶時，我們會投入大量精力，以確保為客戶提供最好的產品和最好的服務。

And we focus on a couple of things. First of all, we offer one-stop shopping platform, therefore anything that our customer needs when they travel around the world, Trip.com offers that suited for them.

我們關注幾件事。首先，我們提供一站式購物平台，因此我們的客戶在世界各地旅行時需要的任何東西，攜程都能提供適合他們的東西。

Secondly, our 24 x 7 excellent customer service has our customers' peace in mind.

其次，我們的 24 x 7 優質客戶服務讓客戶安心無憂。

Thirdly, we also make sure the user's experience on our app is excellent. And lastly, because of the volume we have, we also drive a lot of good products to our overall customers around the world. So going forward, we will focus to provide for best product and excellent services to our customers in Asia. Thank you.

第三，我們也確保用戶在我們的應用程式上的體驗非常出色。最後，由於我們擁有的數量，我們也為世界各地的整體客戶提供了許多優質產品。因此，展望未來，我們將專注於為亞洲客戶提供最好的產品和優質的服務。謝謝。

Wei Fang, Mizuho.

魏芳，瑞穗。

Thank you for taking my question. This is Wei calling for James Lee. Just one on your AI initiative, right? Could management help elaborate on AI kind of initiative and maybe share more on your operating highlights, if possible? Thank you.

感謝您回答我的問題。我是魏打電話給詹姆斯李。只是您的人工智慧計劃中的一個，對嗎？如果可能的話，管理層能否幫助詳細說明人工智慧類計劃，並分享更多有關您的營運亮點的資訊？謝謝。

Sure. We invest heavily in our technology and AI. Many engineers are working very hard to make sure AI support our operations. There are four main usage on our platform. The first one is AI is helping us to improve the user's experience, in the past, customers need to use search to find the right product for their needs. Right now, we can use AI to conduct a very smooth competition with our system and our system will promote the right product that is suitable for our customers based on their travel habit.

當然。我們對科技和人工智慧進行了大量投資。許多工程師正在非常努力地確保人工智慧支援我們的營運。我們的平台有四種主要用途。第一個是人工智慧正在幫助我們改善用戶的體驗，在過去，客戶需要使用搜尋來找到適合他們需求的產品。現在我們可以利用AI和我們的系統進行非常順利的競爭，我們的系統會根據客戶的出行習慣推薦適合他們的產品。

The second thing is using AI, our engineers will be able to cut the coding time anywhere between 15% to 30%.

第二件事是使用人工智慧，我們的工程師將能夠將編碼時間縮短 15% 到 30%。

Thirdly, we also use AI to improve our customer service level to make sure we provide the excellent services to our customers.

第三，我們也利用人工智慧來提高我們的客戶服務水平，以確保我們為客戶提供優質的服務。

The last one is content generation. By using AI, our accuracy and efficiency enhance the generation of video and pictures and content. And going forward, AI will provide a very useful tool for us to improve the efficiency and enhance our users' experience. Thank you.

最後一個是內容生成。透過使用人工智慧，我們提高了影片、圖片和內容生成的準確性和效率。展望未來，人工智慧將為我們提高效率、增強使用者體驗提供非常有用的工具。謝謝。

Jiong Shao, Barclays.

邵炯，巴克萊銀行。

Thank you for taking my question. Jane, I just want to follow up on what you just said. I think you highlighted some of the operational benefits from AI. I was wondering if you can expand a bit beyond that to talk about perhaps when it comes to the dollar and cents on the financial impact, both for the short term and for the long term from AI?

感謝您回答我的問題。簡，我只是想跟進你剛才說的話。我認為您強調了人工智慧帶來的一些營運優勢。我想知道您是否可以在此範圍之外談談人工智慧對美元和美分的財務影響，無論是短期還是長期？

Yes. So AI -- go ahead, Cindy.

是的。那麼人工智慧——繼續吧，辛迪。

Sure. We have consistently integrated our new technologies into our operations and progressing from the mobile technology to non-generative AI and now to the generative AI.

當然。我們不斷將新技術融入我們的營運中，並從行動技術發展到非生成式人工智慧，現在又發展到生成式人工智慧。

And the financial impact, all the investment so far, has been a minimum compared with our financial, especially the top line, as well as the bottom line. And quantify the financial benefits of the new technology at this moment is still quite challenged.

與我們的財務，特別是營收和利潤相比，迄今為止所有的投資對財務的影響是最小的。而量化新技術的經濟效益目前仍面臨相當大的挑戰。

However, from operational perspective, AI definitely can improve our user engagement and conversion rates, as Jane explained, and at the same time, which will also enhance significantly on the service efficiencies and boost our internal operational efficiency. These improvements will eventually be reflected in our financial performance. Thank you.

然而，從營運角度來看，正如Jane所解釋的那樣，人工智慧肯定可以提高我們的用戶參與度和轉換率，同時這也將顯著提高服務效率並提高我們的內部營運效率。這些改進最終將反映在我們的財務表現中。謝謝。

Parash Jain, HSBC.

賈恩 (Parash Jain)，匯豐銀行。

Hi, thank you. Hi, Jane, and the team. I have two questions. So now in a post-COVID world, the group has taken a lift frog in terms of setting the standard with respect to operating margin performance.

你好，謝謝。嗨，簡，還有團隊。我有兩個問題。因此，現在在後新冠疫情時代，該集團在設定營業利潤率表現標準方面取得了進展。

Now the Group consistently generating a huge amount of free cash flow, if you can give us some color with respect to your uses of capital, are you seeing enough M&A opportunities? Or it is about time where we come full year, we hear more on what will be the potential uses of those capital, whether it is from a dividend or a buyback?

現在集團持續產生大量的自由現金流，如果您能為我們介紹您的資本使用情況，您是否看到了足夠的併購機會？或者是到了全年的時候，我們會聽到更多有關這些資本的潛在用途的信息，無論是來自股息還是回購？

And my second question is now, in terms of the GMV, you are at a scale, how shall we think about the operating leverage in terms of your product and marketing costs going forward? Is there a feeling or pretty much quarter by quarter, you will keep surprising us?

我的第二個問題是，就 GMV 而言，您已經達到一定規模，我們該如何考慮您未來的產品和行銷成本方面的營運槓桿？有沒有一種感覺，或幾乎每個季度，你都會不斷帶給我們驚喜？

Sure. Thank you. Yeah, we generated a lot of free cash flow. But in terms of the use of capital, of course, we, as a leader in the travel sector, we will continue to look at different opportunities in the market.

當然。謝謝。是的，我們產生了大量的自由現金流。但在資本的運用方面，當然我們作為旅遊領域的領導者，我們會繼續尋找市場上不同的機會。

However, we think at the moment, we already have a very, very important asset, travel assets in the whole international market. And at this moment, our top priority is to maximize the synergies among of our different brands in the international market.

但是，我們認為目前我們已經擁有了一個非常非常重要的資產，就是整個國際市場上的旅遊資產。此時此刻，我們的首要任務是最大限度地發揮我們不同品牌在國際市場上的綜效。

And with regard to the capital return policies, year to date, we have already repurchased approximately 6 million shares or approximately 1% of our outstanding shares. The scale of our future capital return will depend on our financial conditions, operational results cash flow, capital needs and other relevant factors.

在資本回報政策方面，今年迄今，我們已經回購了約 600 萬股股票，約佔已發行股票的 1%。我們未來的資本回報規模將取決於我們的財務狀況、經營成果現金流、資本需求和其他相關因素。

And we anticipate an expanded capital return program for the year to come 2025 and potentially will include a mix of dividends and buyback, but also subject to our Board approval.

我們預計 2025 年將擴大資本回報計劃，可能包括股利和回購，但也需獲得董事會批准。

And the second question is about the margin rate?

第二個問題是關於保證金率？

Yeah. I mean how much operating leverage do you have?

是的。我的意思是你有多少經營槓桿？

Yeah. First of all, OTA is a very scalable business model. As you may know this already in the past couple of years after the COCID, in the past two years, after the COVID we already achieved a very efficient operational efficiencies across all the expenses line, including the product development, as well as the sales and marketing expenses.

是的。首先，OTA是一種可擴展性很強的商業模式。正如您可能已經知道的那樣，在COCID 之後的過去幾年中，在過去的兩年中，在COVID 之後，我們已經在所有費用線（包括產品開發以及銷售和銷售）中實現了非常高效的運營效率。

But sales and the marketing expenses as a percentage of our gross bookings, actually were less than 1% and benefiting from our very high customer royalty and strong cross-selling ratio through our mobile app. And we anticipate our marketing expenses ratio will actually increase in the Q4, especially compared with our net revenues due to seasonality and fluctuations in the revenue mix between our China and international businesses.

但銷售和行銷費用占我們總預訂量的百分比實際上不到 1%，這得益於我們非常高的客戶版稅和透過我們的行動應用程式實現的強大交叉銷售率。我們預計第四季度的行銷費用率實際上會增加，特別是與我們的淨收入相比，由於季節性以及我們的中國和國際業務之間的收入組合的波動。

And in the longer-term period, we aim to enhance our marketing efficiencies across all markets by prioritized direct mobile app traffic and cross-selling. But again, we are continuously to increase our efficiencies across all the expenses line item, especially after introduce AI to help us to increase the efficiencies. At the same time, we need to investment especially in the international market. Thank you.

從長遠來看，我們的目標是透過優先考慮直接行動應用流量和交叉銷售來提高所有市場的行銷效率。但同樣，我們正在不斷提高所有費用項目的效率，特別是在引入人工智慧來幫助我們提高效率之後。同時，我們特別需要投資國際市場。謝謝。

Thank you.

謝謝。

Thank you. At this time, I would like to now turn the conference back over to Michelle Qi for closing remarks. Thank you.

謝謝。現在，我想將會議轉回由 Michelle Qi 致閉幕詞。謝謝。

Thank you for joining us on the call today. As you all, our call will be available at the IR website. We look forward to convening with you again for the next quarter. Thank you.

感謝您今天加入我們的電話會議。和大家一樣，我們的電話會議將透過 IR 網站進行。我們期待下個季度再次與您會面。謝謝。

Thank you, everyone. You may now disconnect. Have a great day.

謝謝大家。您現在可以斷開連線。祝你有美好的一天。