EARLIER this month, travel service provider Trip.com Group held its 2022 Global Partner Summit in Macao with tourism boards, international airlines, hotel groups and industry representatives from across the travel industry in attendance. During the event, themed ‘Journey into the Future Together’, the company and its partners provided insights on the industry’s growth and opportunities ahead. Needless to say, their numbers provide a glimpse into the coming year, as strong partnerships and robust online marketing strategies seem to be working wonders for the travel and hospitality scene.
It’s no secret that the demand for travel has exceeded expectations. Jane Sun, CEO of Trip.com Group highlighted some of the Group’s financial results, emphasising triple-digit growth in hotel bookings across key APAC markets compared to the same period in 2019, with its global air ticket bookings increasing by 100% year-over-year.
- Net revenue was $969 million, up 29% year-on-year and 72% in the second quarter of 2022, driven by recovery in China’s domestic market.
- Breaking it down further, accommodation revenue was $408 million, a 32% increase year-on-year, while transportation ticketing revenue was $369 million, up 44% year-on-year.
- Net income for the third quarter was $34 million, up from a net loss of $125 million year-on-year.
- Adjusted EBITDA for the quarter was $198 million, a 164% increase year-on-year.
(stats courtesy of Phocuswire)
The fact that these numbers are being compared to 2019 – before travel was disrupted by the pandemic – is noteworthy, as it further emphasises the concept of “revenge travel”. Could it be that those who didn’t consider travelling before the global crisis have gained a newfound appreciation for it?
This can be attributed to the sheer volume of travel content that’s out there on digital platforms. At WiT Singapore 2022, Tejveer Singh Bedi, Head of Travel, SEA TikTok spoke about the role content plays in not only marketing brands, but inspiring a whole new generation of consumers and travellers on how to travel and where they can go.
Trip.com seems to be enhancing engagement between travellers and partners through an expanded content offering of Trip Moments on Trip.com, the Ctrip Community travel sharing space on Ctrip, and Star Hub, the Group’s enhanced marketing tool for suppliers to increase marketing activities, which generated a total GMV of RMB 1 billion in the last 30 days. The Ctrip Livestream, by the way, generated a total GMV of RMB 10 billion, and it set to launch across more cities in mainland China to boost global distribution.
Similarly, the value of online platforms and social media when marketing travel cannot be downplayed. Single’s Day, or 11.11, is now a global shopping phenomenon that trumps the likes of Black Friday, Boxing Day, and Amazon Prime Day sales. Last year, shoppers spent roughly $132.6 billion between the two largest Singles Day retailers, Alibaba and JD.com. Whereas on Black Friday last year, shoppers spent $8.9 billion, according to an Adobe report. Shoppers also spent $10.7 billion on Cyber Monday in 2021.
The sheer shopping frenzy was reflected in the travel space, as Trip.com’s 11.11 campaign showed growth across all its major markets. Overall global bookings hit a new high, surging by 84% compared to 2021, and the average number of bookings for promoted products rose by 68%. In the Singapore market, bookings for the 11th November flash sale jumped by 115% in just 24 hours.
The surge in sales was highest in South Korea, as bookings on the same day jumped by 260% year-on-year.
Singapore Tourism Board and Resorts World Sentosa also won Trip.com’s Outstanding Partner of the Year award. The idea of awarding partners isn’t a trivial one, as many key players have reiterated the need for strong bonds within the travel scene moving forward, in order to cater to pent-up travel demand.
Trip.com Group continues to form these partnerships to increase destination visibility and capture consumer demand. For example, Trip.com Group and Macao Government Tourism Office entered an official strategic collaboration to develop Macao into a world-class centre of tourism and leisure. Earlier this year, Trip.com Group and Singapore Tourism Board (STB) have also deepened their collaboration across key markets including Thailand, South Korea and Hong Kong, while expanding their partnership to include new markets Vietnam, Philippines and Malaysia. The company also launched a promotional campaign with Tourism and Events Queensland, targeting travellers from six major markets – Australia, New Zealand, United Kingdom, Japan, South Korea, and Singapore to experience “A Beautiful Way to Be” in Queensland.
Since we’re looking at travel in 2023, the glaring, glowing, shining elephant in the room is most definitely China. Major platforms have all formed different strategies to capture the massive surge in travel that’s bound to happen when the country’s borders are fully open at some point, and Trip.com is no exception.
Bo Sun, executive vice president and chief marketing officer of Trip.com Group, says: “We are opening up our airline ticketing and hotel resources to travel agencies around the world. In the short term, this will facilitate travel service providers to package and sell their products online, and help destinations to access the first cohorts of outbound Chinese tourists.”
The company also recently announced a $1.5 billion sustainability-linked loan facility with a number of financial institutions that is tied to its environmental, social and governance targets.