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Tongcheng Journey remained resilient and delivered a robust rebound in income and web revenue in 2021 regardless of continued headwinds within the home market as a result of sporadic resurgence of COVID-19 instances in sure cities. Monetary highlights for FY2021 with comparative figures of the earlier yr are as follows:
- Income rose by 27.1% to RMB7.54 billion (2020: RMB5.93 billion)
- Adjusted EBITDA climbed by 38.7% to RMB1.90 billion (2020: RMB1.37 billion)
- Adjusted web revenue surged by 35.9% to RMB1.30 billion (2020: RMB954.0 million)
Tongcheng Journey additionally achieved appreciable year-on-year progress on operational fronts:
- Adjusted web margin expanded from 16.1% to 17.2%
- Adjusted EBITDA margin rose from 23.0% to 25.1%
- Variety of common month-to-month lively customers (“MAUs”) grew 34.2% from 191 million to 257 million
- Variety of common month-to-month paying customers (“MPUs”) rose 36.1% from 23.0 million to 31.3 million
- Variety of paying customers in FY2021 (“APUs”) elevated by 28.2% from 160 million to 200 million, hitting a report excessive
Mr. Ma Heping, Government Director and CEO of Tongcheng Journey, mentioned, “We’re happy to report a yr of progress amid difficult market situations that introduced hardship to the journey trade as a complete. Our focus in 2021 was set on reaching deeper market penetration by leveraging our steady and numerous visitors channels, aggressive benefits in lower-tier cities, and complete product and repair choices. The thrilling progress in MAUs, MPUs and APUs, which have all reached report highs in our company historical past within the interval below overview, attested to our enterprise technique. Going into 2022, whereas we’ll stay cautious and alter our enterprise technique swiftly to market adjustments, we anticipate the home journey trade to recuperate progressively as vaccination fee will increase nationwide and because the authorities pronounces extra supportive measures, the enterprise of Tongcheng Journey may also develop steadily.”
Tongcheng Journey derived its revenues primarily from lodging reservation providers and transportation ticketing providers, which accounted for 32.0% and 59.1%, respectively, of its whole income in 2021. In 2021, income from lodging reservation providers rose by 23.8% year-on-year to RMB2.41 billion, whereas income from transportation ticketing providers grew by 28.4% to RMB4.46 billion. Benefitted from the fast improvement of membership providers and promoting providers, Tongcheng Journey generated a income of 671 million from different companies, representing a year-on-year improve of 30.0%.
As of 31 December 2021, Tongcheng Journey’s on-line platforms supplied over 9,000 home routes operated by over 730 airways and companies, over 2.1 million lodge choices and various lodging choices, roughly 400,000 bus routes, greater than 710 ferry routes and about 8,000 home vacationer points of interest ticketing providers. With complete product choices, Tongcheng Journey additional applied cross-selling methods throughout totally different enterprise strains, together with transportation, lodging, and vacationer points of interest. The sturdy analytics functionality allows it to offer customers with exact and optimum suggestions, optimize consumer interface shows, and discover totally different cross-selling eventualities to faucet into market potentials.
Expanded visitors channels and served on-line and offline all-scenario to
speed up consumer acquisition
In the course of the interval below overview, Tongcheng Journey additional expanded and utilized its visitors channels inside the Tencent ecosystem to discover enterprise potentials. The Firm additional deepened its cooperation with Tencent in the course of the interval below overview and co-launched a sequence of on-line and offline interactive advertising and marketing campaigns by leveraging a number of broadly identified IPs licensed by Tencent. These appealed to customers, particularly these of the youthful era.
To extend its on-line penetration, Tongcheng Journey collaborated with handset distributors to discover extra utility eventualities. It enriched the content material on its App and optimized the interface. Modern cell options corresponding to metasearch and voice assistant capabilities had been launched by the Firm to facilitate higher consumer entry to the Group’s services, thus significantly enhancing consumer expertise. In 2021, Tongcheng Journey was awarded the Most Widespread Fast App and Greatest Companion by one of the influential handset distributors.
As a part of its offline consumer acquisition initiatives, Tongcheng Journey partnered with inns, bus operators and vacationer points of interest to increase its consumer base. These continued to contribute meaningfully to the expansion of paying consumer base.
Elevated the benefits in lower-tier cities and strengthened model recognition by means of efficient advertising and marketing campaigns
Tongcheng Journey continued to penetrate lower-tier cities by increasing its consumer acquisition channels to extra townships throughout China. It established and strengthened cooperation with city and rural bus operators to penetrate into counties and cities rapidly and successfully. As of 31 December 2021, the registered customers residing in non-first-tier cities in China accounted for roughly 86.7% of the entire registered customers. For the yr ended 31 December 2021, about 61.7% of its new paying customers on the Weixin platform had been from tier-3 or under cities in China.
In 2021, Tongcheng Journey launched an revolutionary advertising and marketing initiative referred to as the “Blind Field of Air Tickets”, which later developed right into a sequence of merchandise. This initiative has gone viral throughout social media platforms and earned Tongcheng Journey a number of advertising and marketing awards. It has additionally drawn a large variety of customers of the youthful generations to the Tongcheng Journey’s platform and boosted visitors and consumer engagement.
In an effort to additional improve its model consciousness, Tongcheng Journey elevated its advertising and marketing and branding investments in the course of the interval below overview. Along with a number of on-line and offline promoting channels, it sponsored a number of prime TV programmes and drama sequence and appointed a brand new model spokesperson who is very standard among the many youthful era.
Dedicated to selling the digitization of the journey trade and sustainable progress of
the Firm and communities
Expertise innovation is likely one of the core competencies of Tongcheng Journey. The Firm continued to develop and apply proprietary know-how to rework from a web-based journey company (“OTA”) to clever journey assistant (“ITA”). In the course of the interval below overview, Tongcheng Journey additional optimized the Huixing system by integrating extra provide chain sources corresponding to airplane ticketing, practice ticketing, bus ticketing and car-hailing providers to offer customers with extra journey choices below totally different eventualities. Tongcheng Journey additionally upgraded its AI-driven customer support to enhance working effectivity and established an clever buyer expertise platform to promptly tackle buyer requests. In addition to, a spread of digitization help has been rendered to its suppliers and enterprise companions. For example, it additionally supplied SaaS options to small and medium-sized inns in lower-tier cities to assist them enhance each day operational effectivity. These initiatives are pushed to facilitate the digitization of the journey trade as a complete.
Tongcheng Journey is dedicated to sustainable improvement, for the Firm and for the communities it serves. The Firm has set in place a board-level ESG committee and a corporate-level ESG and Information Safety Committee in the course of the interval below overview. It has launched a sequence of measures corresponding to penalty-free adjustments or cancellations to offer customers with peace of thoughts in the course of the pandemic. It additionally supplied migrant employees free public transportation service to assist them return house safely. Making use of its trade and know-how experience, Tongcheng Journey cooperated with Yan’an Airport and a neighborhood authorities in Yan’an to advertise native produce there in a bid to revitalize rural areas and facilitate the sustainable improvement of native financial system.
Promising enterprise outlook
Because the pandemic continues to speed up the web penetration of the journey trade, the outlook for on-line journey companies is promising. Extra importantly, the Chinese language authorities encourages and helps the event and digitalization of the journey trade. The State Council has introduced a improvement plan for the journey trade in the course of the 14th 5-12 months Plan interval (2021-2025), emphasizing the significance of selling good tourism with digital and synthetic intelligence-powered engagement, in addition to increasing the applying of recent applied sciences in tourism.
Trying forward, Mr. Ma mentioned, “Tongcheng Journey will additional penetrate the journey market by leveraging our diversified and cost-effective visitors sources to develop our consumer base and generate extra visitors. Using superior technological improvements, we may also additional improve our services and strengthen our technical capabilities to achieve larger effectivity and switch from an OTA to ITA. On prime of that, we’ll adhere to our enterprise methods and search funding alternatives. Final however not least, we’ll combine financial progress, environmental safety, company governance and social duty in our enterprise methods to create sustainable worth for our stakeholders and the communities.”
About Tongcheng Journey Holdings Restricted (HKSE Inventory Code: 0780.HK)
Tongcheng Journey (previously generally known as Tongcheng-Elong) is an innovator and market chief in China’s on-line journey trade. It was shaped out of the merger of Tongcheng and eLong, the main on-line journey companies in China, in 2018. It’s a one-stop store for customers’ journey wants. With the mission “make journey simpler and extra joyful”, Tongcheng Journey affords a complete and revolutionary number of services masking practically all facets of journey, together with transportation ticketing, lodging reservation, vacationer attraction ticketing, and numerous ancillary value-added journey services designed to fulfill customers’ evolving journey wants all through their journeys primarily by means of its on-line platforms, which comprise its Tencent-based platforms, its proprietary cell apps, fast apps and different channels.
As a technology-driven firm, Tongcheng Journey leverages huge knowledge and AI capabilities to raised perceive the preferences and behaviors of customers, thereby providing customers custom-made services. Tongcheng Journey has a strategic deal with lower-tier cities in China and seized alternatives there supported by its and diversified visitors sources, product innovation functionality and versatile operation methods. By means of the in-depth understanding of consumer expertise and superior technological capabilities, Tongcheng Journey has been revolutionizing what shoppers anticipate from the web journey trade, making your entire journey course of extra handy, personalised and gratifying than ever. Tongcheng Journey goals to develop and apply its superior know-how to rework from a web-based journey company to clever journey assistant.
For extra data, please go to the Group’s web site at 
https://www.tongchengir.com
#TongchengTravel
The issuer is solely chargeable for the content material of this announcement.
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