Trip back in the black for 2021, but challenges remain

Zhu Shenshen
Trip's revenue recovered to 56 percent of its pre-pandemic level in 2019, but it still faces short-term challenges amid widespread lockdowns.
Zhu Shenshen

Trip, China's biggest tourism platform, turned to black from red in 2021 but also faced short-term challenges in the lockdown situation, the Shanghai-based firm said on Thursday.

Trip, now dual-listed in Hong Kong and on the Nasdaq, posted net profit of 1.4 billion yuan (US$218.8 million) in 2021, compared with a net loss of 913 million yuan in 2020.

Revenue was 20 billion yuan for the year, 9 percent up year on year. That was 56 percent of pre-pandemic 2019.

"We will continue to focus on the business recovery in the Chinese domestic market while remaining ambitious with our global vision towards global travel reopening," said James Liang, executive chairman of the company.

Accommodation bookings contributed 8.1 billion yuan, followed by transportation ticketing, tourism and vacations and business travel.

But Trip has clearly faced short-term challenges in recent quarters, as China takes strict control measures to combat COVID-19.

In the fourth quarter, Trip's net profit was 309 million yuan, a 70.9 percent decrease from a year earlier.

The company started a hybrid working model in March, one of the first major tech firms in China to adopt flexible working hours during the pandemic.

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