Trip.com Group Ltd (TCOM) 2024 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Trip.com Group 2024 Q4 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加攜程集團2024年Q4財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to have my conference over to your speaker today, Michelle Qi, Senior IR Director. Please go ahead.

現在，我想將今天的會議交給你們的發言人，高級投資者關係總監 Michelle Qi。請繼續。

Thank you. Thank you, everyone. Good morning, and welcome to Trip.com Group's fourth 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.

謝謝。謝謝大家。早安，歡迎參加攜程集團2024年第四季財報電話會議。今天與我一起參加電話會議的還有董事會執行主席梁建章先生；首席執行官孫潔女士；以及首席財務官 Cindy Wang 女士。

During this call, we will discuss our future outlook and performance, which are forward-looking statements made under the Safe Harbor provision of the US Private Security 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展望和業績，這些都是根據 1995 年美國私人安全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不同。

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

攜程集團向美國證券交易委員會提交的公開文件中概述了許多潛在風險和不確定性。除適用法律要求外，Trip.com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 fourth quarter of 2024 and full year of 2024, as well as outlook for the first quarter of 2025. 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、營運亮點、2024 年第四季度和 2024 年全年的財務業績以及 2025 年第一季的展望。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.

說完這些，我將把電話轉給詹姆斯。請叫我詹姆斯。

Thank you, Michelle, and thanks everyone for joining us on this call today. Over the past year, the travel market has proven to be resilient with people's desire to explore the world and create unforgettable experiences growing stronger. This shift highlights a broader trend. Consumers are increasingly prioritizing experiences that bring joy and fulfillment over material goods.

謝謝你，米歇爾，也謝謝大家今天參加我們的電話會議。在過去的一年裡，旅遊市場展現了韌性，人們探索世界和創造難忘體驗的願望日益強烈。這種轉變凸顯了一種更廣泛的趨勢。消費者越來越重視能帶來快樂和滿足感的體驗，而不是物質商品。

In 2024, our core OTA businesses achieved a GMV of over RMB1.2 trillion or USD169 billion.

2024年，我們的核心OTA業務實現GMV超過人民幣1.2兆元（約1,690億美元）。

At Trip.com Group, we focus on AI innovation as one of our key priorities. Our suite of AI tools is designed to make travel more accessible and personalized. From the planning phase, we inspire users with tailored recommendations and exclusive deals.

在攜程集團，我們將人工智慧創新作為重點工作之一。我們的人工智慧工具套件旨在讓旅行變得更加便利和個人化。從規劃階段開始，我們就透過量身訂製的推薦和獨家優惠來激勵用戶。

Trip best curates, top-rated hotels, restaurants, and activities based on millions of user reviews, Trip.Trends, Trip.Deals, and Trip.Events dynamically adjust in real time to reflect the latest traveler preferences.

Trip 精選、評價最高的飯店、餐廳和活動是基於數百萬用戶評論，Trip.Trends、Trip.Deals 和 Trip.Events 會即時動態調整以反映最新的旅客偏好。

Itinerary helps users generate travel plans with interactive routes and daily overviews, which can be easily shared with friends and family. Users can also rely on TripGenie for seamless assistance via voice and text commands in multiple languages throughout their journey. Additionally, they receive intelligent updates for hotels, airport transfers, and activities according to their existing itinerary.

Itinerary 可協助使用者產生包含互動式路線和每日概覽的旅遊計劃，並可輕鬆與親朋好友分享。用戶還可以依靠 TripGenie 在整個旅程中透過多種語言的語音和文字命令獲得無縫幫助。此外，他們還會根據現有的行程收到有關飯店、機場接送和活動的智慧更新。

In 2024, TripGenie saw traffic surge by 200%, browsing time increased by nearly 100%, and the total number of conversations rise by 200%.

2024年，TripGenie的流量將激增200%，瀏覽時間將增加近100%，總對話次數將增加200%。

Our international business continues to show robust growth representing 14% of group revenue in Q4 and 10% in 2024. We are also committed to promoting inbound travel as it fosters cultural exchange and creates job opportunities.

我們的國際業務持續呈現強勁成長，佔第四季集團營收的 14%，到 2024 年將達到 10%。我們也致力於推動入境旅遊，因為它可以促進文化交流並創造就業機會。

Every new visitor creates a ripple effect across industries from hotels and restaurants to tour operators, reinforcing the travel ecosystem by investing in initiatives to position our country as an attractive destination. We contribute to sustainable growth that benefits the sector in the long term.

每位新遊客都會對飯店、餐廳和旅行社等產業產生連鎖反應，透過投資將我國定位為有吸引力的旅遊目的地的舉措，加強旅遊生態系統。我們致力於促進永續成長，使該行業長期受益。

Our commitment to rural revitalization is a key part of our sustainability initiatives. By developing country retreats in rural areas, we support local economies by creating jobs and fostering small businesses by incorporating renewable energy, sustainable construction practices, and eco-friendly materials. We aim to make our retreats green and sustainable, helping to safeguard the planet for future generations.

我們對鄉村振興的承諾是我們永續發展計畫的重要組成部分。透過在農村地區開發鄉村度假村，我們透過採用再生能源、永續建築實踐和環保材料創造就業機會並培育小型企業，從而支持當地經濟。我們的目標是讓我們的度假勝地變得綠色且永續，幫助保護地球環境，造福子孫後代。

Looking ahead, we're excited about the opportunities in the evolving travel market. We remain committed to driving innovation and enhancing the traveler experience, and we look forward to another year of growth and success alongside our partners.

展望未來，我們對不斷發展的旅遊市場中的機會感到興奮。我們將繼續致力於推動創新和提升旅行者體驗，並期待與我們的合作夥伴一起迎來新的一年的成長和成功。

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

接下來，我將把電話轉給簡，介紹營運亮點。

Thank you, James. Good morning, everyone. As a quick overview, our net revenue in Q4 grew by 23% year over year, reflecting the continued strength of travel demand. For the full year of 2024, our total net revenue saw a year-over-year growth of 20%. Outbound travel continues to show robust growth, maintaining the positive momentum we observed in previous quarters. The easing of visa application processes and the increasing availability of international flights have further fueled this upward trajectory.

謝謝你，詹姆斯。大家早安。簡單概括一下，我們第四季的淨收入年增了 23%，反映出旅遊需求持續強勁。2024年全年，我們的總淨收入年增20%。出境旅遊繼續呈現強勁增長，保持了前幾季度觀察到的積極勢頭。簽證申請流程的簡化和國際航班的增加進一步推動了這一上升趨勢。

In Q4, the industry level cross-border flight capacity reached over 80% of the pre-pandemic level. Concurrently, our outbound hotel and air ticket bookings have recovered to more than 120% compared to 2019, consistently outperforming the industry by 30% to 40%.

四季度，全行業跨境航班運力恢復至疫情前80%以上。同時，我們的出境飯店及機票預訂量較2019年恢復超過120%，持續跑贏行業30%至40%。

In 2024, China saw a remarkable surge in domestic travel, with 5.6 billion trips taken. This growth highlights travel's increasingly essential role in Chinese daily lives. As the sector becomes an economic cornerstone, initiatives such as consumption vouchers are expected to further stimulate travel spending and fuel domestic travel.

2024年，中國國內旅遊將大幅成長，預計達到56億人次。這一增長凸顯了旅遊在中國日常生活中日益重要的角色。隨著旅遊業成為經濟基石，消費券等措施預計將進一步刺激旅遊支出並推動國內旅遊業的發展。

China's inbound travel sector is emerging as a key driver of economic and cultural vibrancy. The extension of the transit visa to 240 hours and the expansion of visa-free arrangements have led to a remarkable surge in international arrivals. Official data shows that in 2024, visa applications rose by 20% year over year, and visa-free entries increased by an impressive 112% from the previous year. This influx is fueled by strong demand from diverse source markets.

中國的入境旅遊業正成為經濟和文化活力的主要動力。過境簽證延長至240小時以及免簽證安排的擴大導致國際入境人數大幅增加。官方數據顯示，2024年簽證申請量年增20%，免簽入境人數較前一年增加了112%。這種湧入是由來自不同來源市場的強勁需求所推動的。

In Q4 and full year of 2024, inbound travel bookings on our platforms increased by over 100% year over year, with those from visa-free countries rising by over 150%. In response, Trip.com Group introduced free city tours for international travelers transiting via Shanghai in early 2024.

2024年第四季及全年，我們平台的入境遊預訂量年增超過100%，其中免簽國家預訂量成長超過150%。作為回應，攜程集團將於 2024 年初為經上海中轉的國際旅客推出免費城市觀光。

In December, we launched a complimentary half-day Beijing tour, offering free shuttle transfers, multilingual guided commentary, attraction tickets, and Wi-Fi. Travelers can sign up for the tour at the Terminal 3 of Beijing Capital International Airport.

12 月，我們推出了免費的半日北京遊，提供免費接駁車接送、多語言導遊解說、景點門票和 Wi-Fi。旅客可於北京首都國際機場3號航廈報名參加此旅遊團。

To date, travelers from nearly 50 countries, including Australia, the United Kingdom, Germany, France, and Singapore have participated. With its rich cultural heritage, stunning landscapes, and favorable travel policies, China's inbound travel market holds immense potential. As global connectivity strengthens, China is well-positioned to become one of the world's most cost-effective and safe tourist destinations.

截至目前，已有來自澳洲、英國、德國、法國、新加坡等近50個國家的遊客參加。中國擁有豐富的文化遺產、迷人的自然風光和優惠的旅遊政策，入境旅遊市場潛力巨大。隨著全球互聯互通的加強，中國有望成為世界上最具成本效益和最安全的旅遊目的地之一。

On the international front, we have strengthened our presence in key APAC markets and successfully expanded into new regions. By leveraging our one-stop shop model, high-quality service, and advanced mobile technology, we have significantly increased our global reach.

在國際方面，我們加強了在亞太地區主要市場的影響力，並成功擴展到新的地區。透過利用我們的一站式服務模式、高品質的服務和先進的行動技術，我們顯著擴大了全球影響力。

In Q4, air ticket and hotel bookings on our international OTA platform grew by over 70% year over year, with APAC bookings rising by around 80%. To build on this momentum, we are making strategic investments in technology and talent acquisition. Our 16 global call centers solidify our commitment to maintaining high service standards worldwide. Our workforce has also grown to include thousands of travel professionals across 28 countries.

第四季度，我們國際OTA平台的機票和飯店預訂量年增超過70%，其中亞太地區的預訂量成長約80%。為了保持這一勢頭，我們正在對技術和人才招募進行策略性投資。我們的 16 個全球呼叫中心鞏固了我們在全球範圍內維持高服務標準的承諾。我們的員工團隊也不斷壯大，目前已擁有來自 28 個國家的數千名旅遊專業人士。

With consistently improving customer service and a global customer satisfaction rate of nearly 90%, Trip.com has earned multiple accolades, including Contact Center of the Year and Global Support Services of the Year at the International Customer Relations Excellence Awards, as well as Asia's leading online travel agency 2024 at the World Travel Awards. These recognitions underscore our commitment to putting customers first, offering 24/7 global support and service to international travelers at every stage of their journey.

憑藉持續提升的客戶服務水平，Trip.com 全球客戶滿意度接近 90%，榮獲多項殊榮，包括國際客戶關係卓越獎的「年度最佳聯絡中心」和「年度最佳全球支援服務」以及世界旅遊大獎的「2024 年亞洲領先線上旅行社」。這些認可凸顯了我們始終堅持客戶至上的承諾，為國際旅客在旅程的每個階段提供全天候的全球支援和服務。

The silver generation presents another exciting opportunity. With over 100 million active and healthy seniors projected in the coming years, the senior travel market is poised to exceed RMB1 trillion in value.

銀髮世代帶來了另一個令人興奮的機會。預計未來幾年將有超過1億活躍健康的老年人，老年旅遊市場的價值將超過1兆元。

In early 2024, we launched the Old Friends Club initiative to cater to travelers aged 50 and above who now represent 10% of our user base and have 30% higher purchasing power than average. We offer excellent value for money to customers and help suppliers balance demand during off-peak seasons, creating a win-win solution.

2024 年初，我們推出了「老友俱樂部」計劃，以滿足 50 歲及以上旅客的需求，他們目前占我們用戶群的 10%，購買力比平均高出 30%。我們為客戶提供物超所值的服務，並協助供應商在淡季平衡需求，創造雙贏的解決方案。

Currently, users can choose from over 7,000 travel products across more than 50 trending destinations on our Old Friends Club channel, featuring boutique hotels, hot springs, cruises, and more. We plan to expand our selection to meet growing demands.

目前，老友記頻道提供50多個熱門目的地7000多種旅遊產品供用戶選擇，包括精品酒店、溫泉、遊輪等。我們計劃擴大選擇範圍以滿足日益增長的需求。

In addition to serving the silver generation, we are excited about trends among younger travelers. Their increased travel spending is evident in the growing demand for experiences such as live concerts, music festivals, exhibitions, and sporting events.

除了服務銀髮世代之外，我們也對年輕旅行者的趨勢感到興奮。他們的旅遊支出增加明顯體現在對現場音樂會、音樂節、展覽和體育賽事等體驗的需求不斷增長。

To capitalize on this trend, we have introduced our entertainment plus travel offerings, which integrate entertainment with travel, providing young travelers with unique opportunities for dynamic, culture, rich experiences. Through this initiative, we aim to satisfy their desire for excitement, social connection, and immersive experiences beyond traditional tourism.

為了利用這一趨勢，我們推出了娛樂加旅行產品，將娛樂與旅行融為一體，為年輕旅行者提供充滿活力、文化豐富、體驗獨特的機會。透過這項舉措，我們旨在滿足他們對超越傳統旅遊的刺激、社交聯繫和沈浸式體驗的渴望。

Committed to serving diverse traveler with innovative offerings, we align our business practices with a broader sense of purpose. Beyond developing country retreats to create jobs and support local economies, we are dedicated to establishing a comprehensive development framework for the industry, ensuring long-term ecological and social benefits. These efforts elevated our MSCI rating by two levels to an A, and the United Nations Global Compact highlighted our country retreats as a case study.

我們致力於透過創新產品為不同的旅客提供服務，並將我們的業務實踐與更廣泛的目標相結合。除了幫助發展中國家創造就業機會和支持當地經濟之外，我們還致力於為該產業建立全面的發展框架，確保長期的生態和社會效益。這些努力將我們的 MSCI 評級提高了兩個級別，達到 A，聯合國全球契約也將我們國家的務虛會作為案例研究。

We also support our employees with various measures. Call center staff can work from home during Chinese New Year to enjoy family reunions. Additionally, we provide global employees with children under 18 an extra three days of paid leave to balance family and career. These initiatives have strengthened our reputation as an exemplary employer, earning us numerous best employer awards for our inclusive and nurturing workplace culture.

我們也採取各種措施來支持我們的員工。春節期間，呼叫中心員工可以在家辦公，享受家人團聚的樂趣。此外，我們為全球有 18 歲以下子女的員工提供額外三天的帶薪假期，以平衡家庭和事業。這些舉措鞏固了我們作為模範雇主的聲譽，並因我們包容和培育的工作場所文化而贏得了無數最佳雇主獎項。

In conclusion, the market outlook is promising with significant growth potential. We are well-positioned to deliver high-quality travel services globally and remain dedicated to forging partnerships within the travel ecosystem. Together, we aim to achieve mutual success and make a meaningful contribution to the economy.

整體而言，市場前景看好，成長潛力大。我們有能力在全球範圍內提供高品質的旅遊服務，並致力於在旅遊生態系統中建立合作夥伴關係。我們的目標是共同實現成功並為經濟做出有意義的貢獻。

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

說完這些，我現在將電話轉給辛蒂。

Thanks, Jane. Good morning, everyone. For the fourth quarter of 2024, Trip.com Group reported a net revenue of RMB12.7 billion, representing a 23% increase from the same period last year and a 20% decrease from the previous quarter.

謝謝，簡。大家早安。2024年第四季，攜程集團淨營收127億元人民幣，較去年同期成長23%，季減20%。

For the full year of 2024, net revenue was RMB53.3 billion, representing a 20% increase year over year. This is primarily due to the resilient travel demand and consumption throughout the year. Accommodation reservation revenue for the fourth quarter was RMB5.2 billion, representing a 33% increase year over year and a 24% decrease quarter over quarter. We have observed robust growth across our domestic, outbound, and international segments for the full year of 2024, accommodation reservation revenue was RMB21.6 billion, representing a 25% increase year over year.

2024年全年淨營收533億元人民幣，年增20%。這主要得益於全年旅遊需求和消費的強勁成長。第四季住宿預訂收入為人民幣52億元，較去年同期成長33%，較上季下降24%。2024年全年，我們的國內、出境和國際業務均實現了強勁增長，住宿預訂收入達到人民幣216億元，年增25%。

Transportation ticketing revenue for the fourth quarter was RMB4.8 billion, representing a 16% increase year over year and a 15% decrease quarter over quarter. Our domestic and outbound air bookings continue to exceed market growth, while our international air business also demonstrates strong expansion for the full year of 2024. Transportation ticketing revenue was RMB20.3 billion, representing a 10% increase year over year.

第四季交通票務收入為48億元人民幣，較去年同期成長16%，季減15%。我們的國內和出境航空預訂量持續超過市場成長，而我們的國際航空業務在 2024 年全年也將呈現強勁成長。交通票務收入為人民幣203億元，較去年成長10%。

Packaged tour revenue for the fourth quarter was RMB870 million, representing a 24% increase year over year and a 44% decrease quarter over quarter. The year-over-year growth was mainly driven by international business, which has increased by around 100%.For the full year of 2024, packaged tour revenue was RMB4.3 billion, representing a 38% increase year over year.

第四季旅遊度假收入為8.7億元人民幣，較去年同期成長24%，季減44%。年成長主要得益於國際業務，增幅達 100% 左右。2024年全年，度假旅遊收入為43億元人民幣，較去年同期成長38%。

Corporate travel revenue for the fourth quarter was RMB702 million, representing an 11% increase year over year and a 7% increase quarter over quarter. This was driven by more companies adopting our managed corporate travel services.

第四季商旅管理收入為7.02億元人民幣，較去年同期成長11%，較上季成長7%。這是因為越來越多的公司採用我們管理的企業旅行服務。

For the full year of 2024, corporate revenue was RMB2.5 billion, representing an 11% increase year over year.

2024年全年企業營業收入25億元，較去年成長11%。

Excluding share-based compensation charges, adjusted product development expenses for the fourth quarter increased by 18% year over year. Adjusted G&A expenses for the fourth quarter increased by 24% year over year. These are mainly due to increase in personnel-related expenses. For the full year of 2024, the combined total of adjusted product development expenses and adjusted G&A expenses increased by 8% year over year.

不計股權報酬費用，第四季調整後產品開發費用年增18%。第四季調整後的一般及行政費用年增 24%。主要是由於人員相關費用增加所致。2024 年全年，調整後的產品開發費用和調整後的 G&A 費用總額年增 8%。

Adjusted sales and marketing expenses for the fourth quarter remained flattish compared to the previous quarter and increased by 45% from the same period last year. For the full year of 2024, adjusted sales and marketing expenses as percentage of net revenue was 22% compared to 20% last year. The increase was primarily driven by enhanced marketing efforts, particularly focused on strengthening our global business and brand awareness.

第四季調整後的銷售和行銷費用與上一季相比持平，比去年同期成長了45%。2024 年全年，調整後的銷售和行銷費用佔淨收入的百分比為 22%，而去年為 20%。這一成長主要得益於加強行銷力度，尤其是加強我們的全球業務和品牌知名度。

Adjusted EBITDA was RMB3.0 billion for the fourth quarter compared with RMB2.9 billion in the same period last year and RMB5.7 billion in the previous quarter. For the full year of 2024, adjusted EBITDA was RMB17.1 billion, representing a growth of 22% year over year.

第四季調整後EBITDA為30億元人民幣，去年同期為29億元人民幣，上季57億元。2024年全年調整後EBITDA為171億元，年增22%。

Diluted earnings per ordinary share and per ADS were RMB3.09, or USD0.42 for the fourth quarter of 2024. Excluding share-based compensation charges and fair value changes of equity securities, investments, and exchangeable senior notes, non-GAAP diluted earnings per ordinary share and per ADS were RMB4.35 or $0.6 for the fourth quarter.

2024 年第四季每股普通股和每股美國存託憑證攤薄收益為 3.09 元人民幣，或 0.42 美元。不計股權報酬費用以及權益證券、投資和可交換優先票據的公允價值變動，第四季度非公認會計準則每股普通股和每股美國存託憑證攤薄收益為 4.35 元人民幣或 0.6 美元。

For the full year of 2024, diluted earnings per ordinary share and per ADS were RMB24.78 or USD3.39. Excluding share-based compensation charges and fair value changes of equity securities investments and exchangeable senior notes, non-GAAP diluted earnings per ordinary share and per ADS were RMB26.20 or USD3.59.

2024年全年每股普通股及每股美國存託憑證攤薄收益為人民幣24.78元及3.39美元。不計入股權激勵費用及權益類證券投資及可交換優先票據的公允價值變動，非美國通用會計準則每股普通股及每股美國存託憑證攤薄收益分別為人民幣 26.20 元或 3.59 美元。

As of December 31, 2024, the balance of cash and cash equivalents restricted cash, short-term investment, and held to maturity time deposit and financial products was RMB90 billion or USD12.3 billion.

截至2024年12月31日，現金及現金等價物（受限現金、短期投資及持有至到期的定期存款及理財產品）餘額為人民幣900億元或123億美元。

As part of our ongoing commitment to delivering value to our shareholders and in line with our regular capital return policy, the Board of Directors has recently authorized the implementation of strategic capital return initiatives for 2025. These initiatives will include a share repurchase program of up to USD400 million and a cash dividend totaling approximately USD200 million.

作為我們持續致力於為股東創造價值的一部分，並根據我們的常規資本回報政策，董事會最近授權實施 2025 年策略資本回報計劃。這些措施將包括高達4億美元的股票回購計畫和總額約2億美元的現金股利。

The cash dividend will be $0.30 per ordinary and per ADS payable to holders of ordinary shares and ADS of record as of March 17, 2025. Dividends to holders of ordinary shares are expected to be paid on or around March 27, 2025, and dividends to holders of ADS are expected to be paid on or around April 4, 2025. We believe these initiatives reflect our strong financial position and our continued focus on delivering attractive returns to shareholders.

現金股利為每股普通股及每股美國存託憑證 0.30 美元，發放物件為截至 2025 年 3 月 17 日登記在冊的普通股及美國存託憑證持有人。預計普通股股東的股息將於 2025 年 3 月 27 日左右支付，ADS 股東的股息預計將於 2025 年 4 月 4 日左右支付。我們相信這些舉措反映了我們強大的財務狀況以及我們持續致力於為股東帶來可觀的回報。

In conclusion, the continued strength across key business segments underscores our ability to execute effectively and adapt to market dynamics. As we advance into 2025, our enhanced capital return program reaffirms our commitment to delivering value to our shareholders. We remain confident in our strategic direction and are dedicated to fostering sustainable growth and long-term success.

總之，主要業務部門的持續強勁表現凸顯了我們有效執行和適應市場動態的能力。隨著我們邁入 2025 年，我們增強的資本回報計畫重申了我們為股東創造價值的承諾。我們對我們的策略方向充滿信心，並致力於促進永續成長和長期成功。

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

接線員，請打開熱線來回答問題。

(Operator Instructions) Brian Gong, Citi.

（操作員指示）花旗銀行的 Brian Gong。

Good morning, James, Jane, Cindy, and Michelle. Congratulations on this fourth-quarter results. I have a very quick question on recent hot topic, AI. With the rise of AI agents and the new large language models, could management share your thoughts? I mean, how do you think all recent exciting development could impact OTAs like Trip.com? Thank you.

早安，詹姆斯、珍、辛蒂和米歇爾。恭喜第四季的業績。我有一個關於最近熱門話題人工智慧的簡短問題。隨著人工智慧代理商和新型大型語言模式的興起，管理階層能否分享您的想法？我的意思是，您認為最近所有令人興奮的發展會對 OTA 等 Trip.com 產生什麼影響？謝謝。

Thank you for your question. We focus on the deployment of AI technology throughout our business operations. New AI models present great potential to enhance our services by making travel planning more personalized and efficient.

感謝您的提問。我們專注於在整個業務運營中部署人工智慧技術。新的人工智慧模型透過使旅行計劃更加個性化和高效，為增強我們的服務提供了巨大的潛力。

We believe AI agents will not replace OTAs. Instead, they will complement us. They are likely to replace traditional search engines as primary entry points for traffic, opening new customer acquisition channels for OTAs.

我們相信AI代理不會取代OTA。相反，它們會補充我們。它們很可能取代傳統搜尋引擎成為流量的主要入口，為OTA開闢新的客戶獲取管道。

Trip.com provides value that AI alone cannot replicate, particularly in two areas. Firstly, our extensive real-time proprietary. Travel insights are key to delivering accurate and personalized travel recommendations.

Trip.com 提供的價值是人工智慧無法單獨複製的，特別是在兩個領域。首先，我們擁有廣泛的即時專有技術。旅行洞察是提供準確和個人化旅行建議的關鍵。

Secondly, our end-to-end service model and open platform approach enable us to offer competitive service standards and pricing tailored to diverse customer preferences.

其次，我們的端到端服務模式和開放平台方法使我們能夠提供具有競爭力的服務標準和價格，以滿足不同客戶的偏好。

We recognize the vast potential of generative AI in the travel industry and are committed to furthering our investment in this field. We are eager to introduce more user-friendly and valuable features in the future.

我們認識到生成式人工智慧在旅遊業的巨大潛力，並致力於進一步投資該領域。我們渴望在未來推出更多用戶友好且有價值的功能。

Alex Yao, JPMorgan.

摩根大通的 Alex Yao。

Thank you, management, for taking my question, and congrats on good quarter. So my question is, how do you view the current leisure and business travel demands? How do you view the growth trajectory for 2025? And lastly, what are the primary drivers that's going to support the revenue growth? Thank you.

謝謝管理層回答我的問題，並祝賀本季取得良好業績。我的問題是，您如何看待當前的休閒和商務旅行需求？您如何看待2025年的成長軌跡？最後，支持收入成長的主要驅動力是什麼？謝謝。

Thank you, Alex. We have seen travel industry is very resilient, particularly after COVID is over, the surge of the travel demand is really strong. In particular, there are a couple of segments we're targeting in.

謝謝你，亞歷克斯。我們看到旅遊業非常具有韌性，特別是在疫情結束後，旅遊需求激增。具體來說，我們瞄準的是幾個細分市場。

The first one is domestic travel market. We have seen young people have shown great enthusiasm, travel around the world to visit different sites, and events plus travel is really a trend for young people.

第一個是國內旅遊市場。我們看到年輕人展現了極大的熱情，到世界各地旅遊參觀不同的景點，活動加旅遊確實是年輕人的趨勢。

The second traveling force is for the early retired generation. This is a generation which has money, is energetic, and is very curious to explore the world, so we have a special package for silver generation.

第二支出行隊伍是提早退休的一代。這是有錢、有活力、對探索世界充滿好奇的一代，所以我們為銀髮世代準備了特殊的套餐。

The third driving force is the further opening up of the borders. We have seen many countries offer relaxed visa restrictions to Chinese travelers. So that gives another engine for us to bring people around the world.

第三個驅動力是進一步開放邊境。我們看到許多國家對中國遊客放寬了簽證限制。這為我們帶領人們走向世界各地提供了另一個動力。

And we also see the recovery of direct flights based on the official data. By the end of this year, direct flights will recover to approximately 90% to 95% of pre-COVID level. So all these factors give us a very strong engine for the travel industry's growth.

而且根據官方數據，我們也看到直飛航班正在恢復。今年底，直飛航班將恢復到疫情前的約90%至95%水準。所有這些因素都為旅遊業的成長提供了強勁的動力。

And going forward for the next three to five years, we'll make strong investment to further provide excellent services and comprehensive products for our customers around the world. If you look at the Asian market, it's about 150% compared to the China market, so it's huge potential. And our results have shown that we grow in the Asian markets outside of China at a rate of more than 80% year over year. So we'll keep up with this strong investment to make sure we offer services for the global customers. Thank you.

展望未來三到五年，我們將加大投入，進一步為全球客戶提供優質的服務和全面的產品。如果你看一下亞洲市場，它的比例大約是中國市場的 150%，因此潛力巨大。我們的業績表明，我們在中國以外的亞洲市場以每年超過 80% 的速度成長。因此，我們將繼續大力投資，以確保為全球客戶提供服務。謝謝。

Yang Liu, Morgan Stanley.

摩根士丹利的劉洋。

Thanks for the opportunity, and congrats on the solid results. My question is that your operating margin reached a record high in 2024 over the past decades. How do you expect the margin to trend in 2025 and beyond? Thank you.

感謝這次機會，並祝賀你所取得的堅實成果。我的問題是，你們的營業利潤率在2024年達到了過去幾十年來的歷史最高水準。您預期 2025 年及以後的利潤率趨勢如何？謝謝。

Yeah. We actually never set a specific margin targets. Instead, we consider margin as a natural outcome of a dynamic business mix and continuous improvement in our operational efficiency across each business unit. In the near term, we will continue to prioritize our overseas business expansion, which are strategic essential for unlocking significant long growth opportunities as well.

是的。我們實際上從未設定具體的利潤目標。相反，我們認為利潤率是動態業務組合和每個業務部門營運效率持續提高的自然結果。短期內，我們將繼續優先拓展海外業務，這對於釋放長期重大成長機會也具有戰略意義。

Additionally, we are also very excited about the transformative potential of AI-driven solutions, which will play a key role in enhancing our operational efficiency, streamlining our operations, and mitigating cost pressures over time.

此外，我們也對人工智慧驅動的解決方案的變革潛力感到非常興奮，它將在提高我們的營運效率、簡化我們的營運和減輕成本壓力方面發揮關鍵作用。

In the longer-term period, we see no structural limitation to our profit margins. It could be comparable to those of our international peers supported by our innovative strategies, global expansion, as well as forward-looking investments. Thank you.

從長期來看，我們認為我們的利潤率不存在結構性限制。憑藉我們的創新策略、全球擴張以及前瞻性投資，我們可以與國際同行相媲美。謝謝。

[Joyce Chu], Bank of America.

[Joyce Chu]，美國銀行。

Good morning, James, Jane, Cindy, and Michelle. Congrats for the strong results, and thanks for taking my question. My question is recent business trend related. Could management share updates of your performance during the Chinese New Year and post-holiday trend with us? How did hotel price such as ADR or take rate change recently? What is the outlook for 2025? Appreciate any colors.

早安，詹姆斯、珍、辛蒂和米歇爾。恭喜您取得如此優異的成績，感謝您回答我的問題。我的問題與最近的商業趨勢有關。管理階層能否與我們分享您在農曆新年期間以及節後的表現更新趨勢？飯店價格（例如 ADR 或入住率）最近有何變化？2025年的前景如何？欣賞任何顏色。

Thank you. During the Chinese New Year, we observed the several encouraging trends. Firstly, the overall travel demand remains very healthy, and many travelers choose to leave earlier or return late to avoid peak traffic, resulting in a more even distribution of demand during and around the official public holidays. And second, travelers expanded their travel radius to more distant destinations, and partly thanks to the longer period of the public holiday period.

謝謝。在農曆新年期間，我們觀察到了幾個令人鼓舞的趨勢。首先，整體出行需求依然十分健康，許多旅客選擇提早出發或晚歸以避免交通高峰，使得法定假日期間及前後的需求分佈更加均勻。其次，由於公共假期時間延長，遊客的行程範圍擴大到更遠的目的地。

With cross-border trips being particularly popular, despite headwinds in certain areas, and our outbound travel booking increased by over 20% year over year, while inbound travel maintained travel digit growth during the Chinese New Year holidays. After the holiday, what we observed is the travel activities maintain a healthy momentum. Thank you.

儘管部分地區存在阻力，跨境遊依然特別火爆，出境旅遊預訂量年增超過20%，而入境遊在春節假期也維持了成長動能。假期過後，我們觀察到旅遊活動保持良好勢頭。謝謝。

Oh, sorry, for the hotel prices, and outlook for the 2025, the industry data shows that the hotel prices are still below last year's level, but they're gradually approaching them. The hotel supply increased by mid- to high-single-digit percentage year over year, reflecting continued market confidence in the travel industry.

哦，抱歉，關於酒店價格，展望2025年，行業數據顯示，酒店價格仍然低於去年的水平，但逐漸接近。飯店供應量較去年成長中高個位數百分比，反映出市場對旅遊業的持續信心。

And we believe the ongoing improvement in the travel infrastructure will further benefit the industry in the longer-term period. And looking ahead to the year 2025, we anticipate that the growing travel demand and normalizing supplier growth will stabilize the hotel price. Thank you.

我們相信，旅遊基礎設施的持續改善將在長期內進一步使旅遊業受益。展望2025年，我們預期不斷成長的旅遊需求和正常化的供應商成長將穩定飯店價格。謝謝。

Thank you.

謝謝。

Wei Xiong, UBS.

熊偉，瑞銀。

Good morning, management. Thank you for taking my question. And congrats on the very good growth this quarter. My question is about the outbound travel. So could you please update on the outlook for outbound flight capacity improvement this year? Have we seen any impact on outbound travel demand from the recent incident in Thailand, also the higher prices due to FX changes?

早安，管理層。感謝您回答我的問題。恭喜本季取得非常好的成長。我的問題是關於出境旅遊的。那麼，您能否介紹一下今年出境航班運力提升的前景？我們是否看到最近泰國發生的事件對出境旅遊需求產生了影響，以及匯率變動導致價格上漲？

Also for our group, our outbound travel growth have consistently been outperforming the industry. How do we keep this up performance going forward? Thank you.

對我們集團而言，我們的出境遊成長也一直優於產業。我們如何在未來保持這種良好的表現？謝謝。

Thank you. Our outbound flight capacity reached over 80% of 2019's level in the fourth quarter and increased further during the Chinese New Year holiday. And according to the CAAC, total international flight capacity could recover to more than 90% by 2025, indicating a double digit year over year growth. Despite headwinds in certain major destinations, our total outbound booking grew by 20% to 30% during the Chinese New Year holiday. We believe that some travelers just simply switch their destinations.

謝謝。我們的出港航班運力在第四季達到2019年的80％以上，並在春節假期期間進一步增加。根據中國民航局預測，2025年，國際航班總運能將恢復至90%以上，年成長率將達到兩位數。儘管某些主要目的地面臨阻力，但農曆新年假期期間我們的出境旅遊預訂總量仍增加了 20% 至 30%。我們相信有些旅行者只是單純地改變目的地而已。

And with regard to the impact from forest changes, as far as today, there's was no significant -- we see no significant correlation between the forest rates and the international air price so far.

至於森林變化的影響，截至目前，我們尚未發現森林率與國際空運價格之間有顯著的相關性。

For the continuous outperform the industry growth, what we focus is just by continuously enhancing our product offering as well as the service quality. And with the continuous investment in the Trip.com business, we are able to further enhancing our international product offerings. To some extent, it will also benefit and fuel our growth for the outbound business travel. Thank you.

為了持續超越產業成長，我們關注的重點只是不斷提高我們的產品供應和服務品質。隨著對Trip.com業務的持續投資，我們能夠進一步增強我們的國際產品供應。從某種程度上來說，這也有利於並促進我們出境商務旅行的成長。謝謝。

Thank you.

謝謝。

Simon Cheung, Goldman Sachs.

高盛的 Simon Cheung。

Hi. Thanks for taking my question and also the presentations. Just one quick question on the follow-up on the Trip.com platform. Noticed that you have accelerated growth for over 70% in the fourth quarter. Wondering what is the outlook for 2025, and what are some of the initiatives that you are planning to do? I remember that you did mention now you have coverage of over, I think, 30 countries globally, for example.

你好。感謝您回答我的問題並進行演示。關於Trip.com平台的後續事宜，我只想問一個簡單的問題。注意到你們在第四季度實現了超過 70% 的成長。想知道 2025 年的前景如何，以及您計劃採取哪些措施？我記得您曾經提到過，現在您的業務已經覆蓋了全球 30 多個國家。

And then, secondly, I think, whether you have starting to see some response from some of your local competitors or even some of the global competitors like GoldenBooking. Thanks for that. Thank you.

其次，我認為，您是否已經開始看到一些當地競爭對手甚至一些全球競爭對手（如 GoldenBooking）的回應。謝謝。謝謝。

Yeah. So for the Trip.com business is growing very rapidly. I think we focus on our internal strength, which includes providing one-stop shopping platform, which makes travel very convenient for our travelers. Secondly, the users' experience is excellent. And thirdly, we also focus to provide, focus on, providing excellent customer service, to the global customers. And lastly, we also invested heavily in AI. So with all these concerted efforts, we have seen a very promising growth, going forward, and we'll keep up with our efforts.

是的。因此Trip.com的業務成長非常迅速。我認為我們專注於我們的內部優勢，包括提供一站式購物平台，這使得我們的旅客出行非常方便。其次，使用者體驗非常好。第三，我們也致力於為全球客戶提供優質的客戶服務。最後，我們也在人工智慧方面投入了大量資金。因此，透過所有這些共同的努力，我們看到了非常有希望的成長，展望未來，我們將繼續努力。

Travel is a very robust industry. So ever since Trip.com was established, we have seen competition from different players. But our focus has always been build our internal strengths to provide the best service and best product for our customers. And naturally, our footprint will grow. Thank you.

旅遊業是一個非常強勁的行業。自從Trip.com成立以來，我們就看到了來自不同參與者的競爭。但我們的重點始終是增強內部實力，為客戶提供最好的服務和最好的產品。自然，我們的足跡將會擴大。謝謝。

Thank you.

謝謝。

[Jack Yuan], Mizuho Securities.

[Jack Yuan]，瑞穗證券。

Great. This is James Lee of Mizuho. A quick question on inbound travel in general. Sounds like you guys are off to a great start. Just curious what the current contribution or inbound travel to your business, and what is sort of expected growth rate going forward? And maybe, a big picture question over a longer term several years from now, how should we think about the level of contribution for inbound travel? Thank you so much.

偉大的。我是瑞穗的詹姆斯李。關於入境旅遊的一般快速問題。聽起來你們已經有了一個很好的開始。只是好奇目前入境旅遊對您的業務的貢獻是多少，以及未來的預期成長率是多少？也許，從現在起幾年內的一個長遠問題是，我們該如何看待入境旅遊的貢獻程度？太感謝了。

Yeah. Inbound travel has great potential. Globally, if you look at the countries which attracts lots of inbound customers, it can -- inbound travel can contribute anywhere between 2% to even 10% of their GDP depending on different countries.

是的。入境旅遊潛力大。放眼全球，如果你看看那些吸引大量入境遊客的國家，你會發現，入境旅遊可以為其 GDP 貢獻 2% 到 10%，具體取決於不同的國家。

For China, we just started the inbound travel. We have given more than 40 countries free visa. We also extended in-transit visa from 3 days to 10 days. So that makes the inbound travel very convenient.

對中國來說，我們才剛開始入境旅遊。我們已向40多個國家免簽。我們也將過境簽證有效期限從3天延長至10天。這使得入境旅行非常方便。

And last year, we invited more than 2000 global partners to Shanghai for a summit, and after that we chartered for planes to take them from Shanghai to Zhangjiajie, where the movie Avatar was filmed, and the feedback we got was very positive. All the people told us that they were very pleasantly surprised by what they have seen. It's a very clean, very safe, people are very friendly. The history is very rich, and the infrastructure is excellent.

去年我們邀請了2000多位全球合作夥伴到上海開峰會，之後我們又包機把他們從上海送到了電影《阿凡達》的拍攝地張家界，得到了非常正面的回饋。所有人都告訴我們，他們所看到的景象讓他們感到非常驚訝。這裡非常乾淨、非常安全，人們非常友善。歷史非常悠久，基礎設施也非常好。

So we can see as long, as we put concerted efforts to promote inbound travel, it can become $1 trillion. A contribution for this industry. And Trip.com is very well-positioned because our inventory is the most comprehensive -- service is outstanding. So we would like to welcome more friends from all over the world to come and visit us. So this is a very promising field for us to make our investment going forward in the next 5 to 10 years.

因此，我們可以看到，只要我們齊心協力促進入境旅遊，入境旅遊規模就可以達到1兆美元。為這個行業做出貢獻。Trip.com 的定位非常有利，因為我們的庫存最全面，服務也非常出色。因此，我們歡迎更多來自世界各地的朋友前來參觀。因此，對我們來說，這是一個非常有前景、值得在未來5到10年內進行投資的領域。

Great. Thank you so much.

偉大的。太感謝了。

Jiong Shao, Barclays.

邵炯，巴克萊銀行。

Thank you very much for taking my question. I'm glad you talked about the enhanced capital return program for '25 earlier. I was just wondering, could you firstly remind us when is the dividend payout date for that $200 million? And for your $400 million dollar buyback this year, any updates so far, have you bought any shares back? Could you also remind us sort of what's beyond this year if you have announced any other program beyond 2025? Thank you so much.

非常感謝您回答我的問題。我很高興您之前談到了 25 年增強資本回報計劃。我只是想知道，您能否先提醒我們這 2 億美元的股息支付日期是什麼時候？對於今年 4 億美元的股票回購，目前有什麼進展嗎？您是否回購了任何股票？如果您宣布了 2025 年以後的任何其他計劃，您能否提醒我們今年以後的情況？太感謝了。

The dividend [payout] (corrected by company after the call) date for the Hong Kong shareholder is on March 27th, and the US shareholders, the [payout] (corrected by company after the call) date is on April 4. And in the year 2024, we fully executed the USD300 million share repurchase plan, which reduced approximately 1% of our outstanding shares. And for the year 2025, the Board of Directors authorized a new capital return program and this includes a share repurchase program of up to USD400 million and the cash dividend totally approximately USD200 million effectively doubling the size of our 2024 capital return program.

香港股東的股利[發放]（公司在贖回後已更正）日期為3月27日，美國股東的股利[發放]（本公司在贖回後已更正）日期為4月4日。2024年，我們全面執行了3億美元的股票回購計劃，減少了約1%的流通股。對於 2025 年，董事會批准了一項新的資本回報計劃，其中包括高達 4 億美元的股票回購計劃和總計約 2 億美元的現金股息，這實際上使我們 2024 年資本回報計劃的規模翻了一番。

And looking ahead, we will remain committed to increase our shareholder returns through sustainable business growth while also actively seeking opportunities to further enhance the values through our capital return program. Thank you.

展望未來，我們將繼續致力於透過可持續的業務成長來增加股東回報，同時積極尋求機會透過我們的資本回報計劃進一步提升價值。謝謝。

Thank you very much.

非常感謝。

Thank you, and I would like to hand the conference back over to Michelle Qi for closing remarks.

謝謝大家，現在我想將會議交還給 Michelle Qi 做結束語。

Thank you. Thank you, everyone, for joining us today. You can find the transcript on the webcast of today's call on investors.trip.com. We look forward to speaking with you on our first-quarter 2025 earnings call. Thank you, and have a good day.

謝謝。感謝大家今天加入我們。您可以在 investors.trip.com 上的今天電話會議的網路直播中找到記錄稿。我們期待在 2025 年第一季財報電話會議上與您交談。謝謝，祝您有美好的一天。

This concludes today's conference call. Thank you for participating, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接了。