Trip.com, China’s largest online travel platform, today said it lost 647 million yuan, or $ 100 million, in the second quarter of 2021, an increase from its loss of 476 million yuan over the same period in 2020. Trip.com reported a profit of 1.8 billion yuan in the first quarter. (See announcement here.)
Shares of Trip.com, which trades on the Nasdaq, fell 3.6% after the announcement. Before the announcement, they had gained 5.7% from the previous year.
“The company’s overall results for the second quarter of 2021 were negatively impacted by the Covid-19 pandemic, as well as subsequent outbreaks caused by new variants of Covid-19,” Trip.com said.
However, benefiting from the general containment of the Covid-19 pandemic in China, the company’s domestic activities continued to show a strong recovery, which contributed to almost all of its total revenue. “
Net sales totaled 5.9 billion yuan, or $ 912 million, up 86% year-on-year and 43% quarter-over-quarter. The value of domestic purchases of hotels and airline tickets increased by about 150% year over year. Compared to the same pre-Covid period in 2019, domestic hotel and airline ticket bookings saw double-digit growth in the second quarter, the company said.
The company said sales and marketing spending for the second quarter of 2021 increased 112% to 1.4 billion, or $ 217 million, compared to the same period in 2020 and was up 47% from in the previous quarter, representing 24% of net sales.
Shareholders include Chinese online search leader Baidu, which owns around 11% of Trip.com. The company’s co-founders are billionaires Neil Shen, currently founding and managing partner of Sequoia China, and Ji Qi, CEO of US hotel company Huazhu Group.
Trip.com has invested in at least six hotel and travel companies in China: BTG Group, Tuniu, Atour, Elong, HomeInns and Huazhu.
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