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spk_0: then thank you for standing by welcome to take up congress twenty twenty two q for earnings conference call at the time or pockets when thought in the listen only look after the speakers presentation they'll be a question and answer session got a question do into session you need to press start one one telephone with the advice that to date conference is being recorded how now like to have to come over to your first speaker today miss michelle t e the doctor and cupid go ahead
spk_1: thank you
spk_2: the morning and welcome to keep they'll come good fourth quarter of twenty twenty two earnings conference call johnny me today on the call or mr gym flam executive chairman of the border with can some chief executive officer and mr lee one chief financial officer you are in the call we will discuss our future outlook and performance which are forward looking statements made under the same hopper prohibition of the us private security litigation reform act of nineteen ninety five forward looking statements imovie here it's risks and uncertainties as such a result may be materially different
spk_3: express the day
spk_2: a number of potential risks and uncertainties are outlined in triple congress public filing with the security and exchange commission kid they'll come group that not and the take any obligation to update any forward looking statements except as required under applicable law james jan and sunday share our strategy and dozens of the operating highlights and financial performance for the fourth quarter of twenty twenty two as well as the the outlook of the first quarter of twenty twenty three after the prepared remarks we will happen to any session with that i will turn the call right to james james please
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spk_11: think a games good morning everyone as a quick overview thank you for despite the outbreak of the pandemic our total net revenue grew by seven percent year over year we feel steady improvement in our overseas businesses which has outgrown the pre pandemic level
spk_10: for the four year of twenty twenty two a total net revenue remained stable year over year
spk_11: our adjusted ebitda say the positive for the past three years despite pandemic challenges thanks to our teams efforts and are effective cost the control and efficiency improvements
spk_10: now i would like to share what we have seen in each region first in the kind of market
spk_14: for china market the fourth quarter of twenty eight and a kid was that darkness before dawn
spk_2: why domestic travel performance was soft in october and november two two viral resurgence and a strict a pandemic controlling measures the announcement of drop in quarantine requirement and the reopening of countries border in december was the key turning point
spk_10: in china's cabo recovery all this fight china domestic kabul market being largely impacted by pandemic we continue to adapt our strategy to outperform the market
spk_11: our same city the occasion hotel bookings in this quarter grew by ten percent above twenty nine nineteen creek called that the level and it was forty percent higher than the pre pandemic level for the four year of twenty twenty two
spk_15: our domestic air ticket him poking was also recovering faster than the market
spk_11: quarter to eight we are glad to see that the long haul trouble bookings have strongly recovered and a have already surpassed twenty nine came pre corbett the level and the short short or taba grill remain robust and has nearly doubled
spk_16: it's twenty nine clean pre core with the level
spk_11: with both the long haul in short or cobbled immense coming back we anticipate our domestic business to remain on the strong growth trajectory for the rest of twenty twenty three
spk_10: second all album
spk_11: china although in trouble
spk_10: has seen out that the man there has been a robust especially after the announcement off the boy the opening in december thank you for all volunteer air ticket bookings ultra falcon group platform increase the by over two hundred percent year over year an album hotel bookings increase the by one hundred forty percent year over year
spk_2: it meant for album kabul continue to search in the first two quarters of two months off twenty twenty three with album trouble bookings increased by more than three hundred percent compared to the same period in twenty twenty two back in twenty nine key mainland china was the largest album toggle market in the world with chinese travelers peeking over more than one hundred fifty million trips overseas we're pleased to see them gaining confidence in traveling and are eager to explore the way
spk_10: world that game after three years
spk_12: right now the bottleneck life in the album flight capacity which is currently only at fifteen to twenty percent off pre cold it level and is largely limiting the obama recovery pace of china's album trouble we anticipate that the a
spk_10: these industry will set in motion plans to restore flight capacity and that albums hobble will pick up the pace in the coming quarters third global market on the international friend the europe and america markets continue to show that the improvements why the opening up off the asia reason for the accelerated their recovery the a pack market
spk_11: full flight before men the oval air ticket booking our global platforms have achieved over eighty percent year over year growth air tickets bookings in india and american market continued to show strong growth the apec region was also picking up the pace and the growling at over three hundred percent year over year over on the consistent a currency basis all air ticket revenue from the global platform have already fully recovered to the pre pandemic level
spk_2: what your business
spk_11: although a hotel bookings of our global platform hit a record high and was above pre corporate level for fourth consecutive quarters with the mythical hotel bookings the now china market increased by one hundred forty percent versus twenty
spk_2: nineteen now i would like picky of strategic highlights on the following items first accommodation
spk_10: over the past three years we have duke a strong use case in china i'm sure short haul and continue to remain at our advantage in law or trouble
spk_17: the order to serve our evolving need for the customers and the create value for our partners with continue to press ahead with improvements in product the coverage in the lesion inspiration and the recommendation in the past quarter
spk_11: with the hotel market we have seen hotel evolving into destination in themselves which travelers emphasizing the quality of their accommodation
spk_10: package deals cover seventy per cent more prophet peace then twenty twenty one and the more than seven thousand a high end of properties joining hands with us to help our customers to get the best value for money
spk_11: over two hundred forty cells in hotels also join our trip plus program to gain access and provide extra benefits of a high quality loyal customers thankyou for over fifty percent of our a plethora of asian come from high and hotels in the load pierce city we continue to leverage our gateway product to acquire new customers as we continue to strengthen our dynamic pricing structure strategy pope branded membership program also help the expanded our reach to over thirty million joint members which is six times the number he twenty nine came pre poll that level second global business we remain confident in our china customers is i to then ventral overseas especially with cool vid fading away and the world embracing no mercy
spk_2: we stayed focused on titan connections with our international partners and strengthen the engagement with our chinese customers
spk_11: as one of the very few companies invested heavily in global supply years relationship even during the pandemic period
spk_10: well well positioned to capture the strong had kept the meant for all been trouble
spk_11: the addition to the resumption of china all bomb kabul yet another great opportunity lies in the acceleration of trouble recovery the in a pack region
spk_12: strong prompt city to cobble is in the region provide a good opportunity for us to capture more booking
spk_2: while we concluded our year with the strong growth the international hotel in air ticket business
spk_11: our overseas activity t business has also delivered great performance with gm the increased by over one hundred thirty percent year over year
spk_2: we will continue to source for unique offerings and the localized our campaign
spk_11: to gain trajectory four local the men while improving our competitiveness and the service capability to win over the local mindset
spk_18: third content platform following the root root of the global travel activities demand for inspiration lotus destination continue to increase were see customers coming into our platform not only to book a ticket
spk_3: or hotel room
spk_11: but also to get it in fire to foot the their next a trip is a fourth quarter our content generation pipeline and the users engagement to capabilities continue to improve the number of kill whales increased by forty seven percent year over year in twenty twenty two
spk_10: user generated content also increase to five thirty three percent compared to the previous year average number of the content viewed per user also continue to increase
spk_11: in line with our commitment to inhalation we have also launched our experimental a i had bought shipped in our our trip dotcom platform
spk_10: kiffin is that generate is a i had bought integrated with our open a i a guy in is designed to provide the colors with life assisted and provide the most the relevant an authentic cover recommendations to our customers
spk_3: fourth call part through responsibility while strengthening our capabilities to inspire and serve customers to explore the world we remain committed to pushing forward with our cooperate responsibility
spk_11: first common prosperity the gaudy our rural revitalization initiative our plan is to roll out ten high quality control retreats to in power one hundred to rural destinations and northrop ten thousand rural poor talon
spk_19: within five years
spk_2: over the past year thirteen you have felt com country retreat would beat making a total of twenty one pinpoint seats currently operation
spk_11: right now eighty percent of the staff come from the local and their average income was increase by around seven thousand aren't the per year
spk_2: we have been like it to the able to empower the locals and help pursue the common prosperity second unsustainability
spk_19: we announced our long term green poor them both which include launching over ten thousand low carbon trouble product promoting sustainable kabul and engage one hundred than the an inch habilis been carbon low carbon practices in aiming to for the right
spk_2: use carbon emission across it's operation to meet increase that the myth and for sustainable kabul option like have felt come rent lungs to it's problem off that option for travelers to address the a flight emission by supporting a portfolio of caustic high impact climate projects in line with the un sustainability i the goals
spk_19: the in october her sell phone group has officially joined the global system that will a sustainable tourism council e s t f p c as the member to promote sustainable tourism standard in the travel and tourism sector finally during the quarter
spk_2: if thou call with named contact the center of the year twenty twenty two at the international customer relationship excellence award and a champion for good in singapore demonstrating the recognition
spk_11: of our rent for his service excellence and a focus our local commitment
spk_19: in conclusion we're encouraged by our results in the recent a strong recovery in the market i would like to think our team for the a dedicated effort in maintaining quality services during the past three years as we look into the future
spk_11: a trip they'll come group look forward to working more closely with our global partners across the global market to shape our products and services around the customer me and pursue or for value working together we will be able to do
spk_19: deliver memorable trip for travelers wherever they choose to explore and visit in couldn't pay twenty three and a be young with that i wouldn't now turned a core to thing the i think jay for morning every one for the fourth quarter of twenty twenty two trips or cancun with bought it a match revenue of our and these five billion represents a seven percent increase from the same period last year and a twenty seven percent decrease from the previous water primarily due to borrow with bedroom and stripped and damage control in the china domestic market during the first two months of the quarter
spk_2: for the full year of twenty twenty two next revenue what our and be twenty billion which remained stable year over year many driven by recovery in overseas markets and partially offset by a soft of woman in the china domestic market
spk_19: accommodation reservation revenue for the fourth quarter of twenty twenty two was i i'm the one point seven billion
spk_11: representing a twelve percent decrease year over year and a forty two percent decrease quarter over quarter recovery tool fifty seven percent of the twenty nine pm level
spk_19: for the four year of twenty twenty to accommodate your reservation revenue was i'm the seven point four billion representing a nine percent decrease round the twenty twenty one
spk_11: in the fourth quarter the china domestic market was largely impacted by the by surgery as stripped him down that control
spk_2: and limiting the hotel business performance
spk_19: all the other hand hotel booking our international platform remain robust and above the pre cool that level transportation picketing revenue for the fourth quarter of twenty twenty two was i'm the two point two billion representing a forty five percent increase year over year and a sixteen percent decrease quarter over quarter recovering to sixty four percent of the twenty nine pm level
spk_3: for the full year of twenty twenty two transportation ticketing revenue was i'll be eight point three billion
spk_19: representing a twenty percent increase
spk_2: brown twenty twenty one
spk_19: though mass pick transportation recovery momentum was disrupted by the resurgence of colbert cases for the fourth quarter while our international air saw the sequence improvement compared to the previous quarter mainly driven by the steady improvement in the euro pay us market and the robber to run recovery in the asia pacific market
spk_2: that is to our revenue for the fourth quarter of twenty twenty two was i'm be one hundred and sixty four million
spk_19: represent he a seven percent decrease year over year and a fifty eight percent decrease quarter over quarter recovering to twenty one percent of the twenty nine p level
spk_2: for the full year of twenty twenty two package tour revenue was and be seven hundred and ninety seven million representing a twenty eight percent decrease probably twenty twenty one
spk_19: probably travel revenue for the fourth quarter of twenty twenty two what i'd be two hundred and seventy seven million representing a twenty five percent decrease year over year and a twenty five percent decrease quarter of a quarter recovering to seventy four percent after twenty nineteen level
spk_3: for the four year of twenty twenty two hop travel revenue with our and be one point one billion representing a twenty percent decrease from twenty twenty one
spk_19: air ticketing bookings our corporate travel platform was impacted by the pandemic control measures and that limited flight capacity why accommodation bulking continue to go to gain momentum despite pet and pedantic challenges and was double the twenty nine level
spk_11: a shooting share these the compensation charges our total just a pretty expensive was fifteen percent lower than the previous quarter and a was a saving of thirty three percent compared with the same period in twenty nine team
spk_2: for the full year of twenty twenty two total adjusted our previous benefits with thirty four percent lower than the twenty nine two level this reflects our effective cost control and efficient operating management across this miss line
spk_19: adjusted product development expenses for the fourth quarter decrease the by fifteen percent from the previous quarter and was a saving of twenty percent compared with the same period in twenty nine p
spk_2: i just a dna expensive for the fourth quarter remained flat is compared to the previous quarter and to the same period in twenty nine p for the full year of twenty twenty two adjusted product is alum expensive and adjust their dna expensive what twenty percent and eleven percent lower than the twenty nine pm level respected me as we continued to learn a to run lean and maintain a stable hacked come
spk_19: adjusted sell of moxie expensive for the fourth quarter decrease the by twenty one percent from the previous quarter and fifty five percent compared with the same period of twenty nine p for the four year of twenty twenty two adjusted thousand marks the expensive was fifty five percent lower than twenty nine p level as we continue to stick with our stringent house control protocol
spk_2: adjusted it is that was our and the two hundred and eighty six million for the fourth quarter compared with our and be sixty four million in the same period last year
spk_19: and i'm the one point four billion in the previous quarter
spk_2: adjusted ebitda margin was six percent for the fourth quarter compared with one percent in the same period last year and twenty one percent in the previous quarter
spk_19: i looted the for ordinary sheer and for a the year where i and be three point one two or us all a forty five cents
spk_2: for the fourth quarter of twenty two twenty two and i and the two point one for all us dollar thirty one sense for the full year of twenty twenty two
spk_11: it's true the share face the composition charges and fair value changes of equity securities in backlund exchangeable see me alone
spk_2: now get diluted earning per ordinary sheer and for a the as were i'll be
spk_0: seventy six cents or us dollar eleven cents for the fourth quarter and are and the one point nine seven or us dollar twenty nine cents for the full year of twenty twenty two as of december thirty first twenty twenty two the balance of cash and cash equivalents restricted cash short term investment how to maturity time deposit and financial products what i'll be sixty million billion or us dollar
spk_20: eight point six billion now turning to the first quarter of twenty twenty three
spk_11: we were like to share some colors of our business seeing the lifting off corbett related travel restrictions china domestic travel market has seemed very strong release of pent up demand in the first two months of twenty twenty three
spk_21: with industry level air passenger ball and recovered to around eighty percent of twenty nine pm level
spk_22: and what hell rep paul fully recovered in recent weeks
spk_11: the international flight path of the also recovered to fifteen to twenty percent off the priests have them that level and continues to movie up what are to date
spk_23: we are glad to deliver strong without across our bit miffed life
spk_0: birth for our mascot for tail an air kings have already surpassed the twenty nine pm level
spk_24: second our album travel booking have rome by more than three hundred percent compared to the same period last year and our hotel and air picketing poking out for all volvo platform continues to grow by triple digit year over year
spk_11: to conclude the lifting of pandemic related restriction and reopening of country bother have been an important driver to the recovery of robo travel and out businesses
spk_19: we have her we acknowledge the uncertainty regarding potential looming new wave of cold it that made it's rough that recovery trends
spk_2: however we are confident in traveler strong desire for travel and up belletti to handle challenges
spk_11: we will keep the operation been and continuously to enhance efficiency and invest to seize opportunities in a calming future
spk_19: with that operator please open alive for question
spk_0: like as a reminder to ask a question judith press thought one one on the telephone who can say requests please press paul one one again hardly beat your request to watch question that each time you stand by what we called particular new roster
spk_20: but questions we have to live from brian come from cpp thought your question ah the my incomes jason the michelle specs for kicking my question is ah so management a definition of we have seen decent recovery for the guzman our business so i just wondered management share a bit more collar and details on the performance for our
spk_25: the domestic they audubon an international conference rape respectively in recent weeks thank you and
spk_26: yes i think he i our performance for the last pick out and and also international ah ah very strong of with a nasty business we have already see our hotel and air tickets as the past prequels it level of full album business are we have seen three
spk_19: good sense quicker to date well as compared to last year
spk_3: oh though
spk_27: the air ticket
spk_28: capacity has not yet fully recovered the yet certainly on the platform
spk_3: oh thought global platform or we have seen three digit growth a are we in the regions so we are confident that we can work hard to capitalize the opportunity in twenty twenty three thank you
spk_19: i give us questions
spk_11: excrescence from the life of alex pulled from morgan stanley please go ahead
spk_14: thank you for graduation management on extremely strong results and here today performance
spk_2: my question is related to our expectation for rest of the year at twenty twenty three will total revenue fully recovers to the prequels level sometime this year thank you very much
spk_3: a kid alex
spk_0: despite very limited visibility is due to comparatively shot blocking windows at a computer with a freak of it and period we have fact that their recovery momentum of the china domestic travel i will remain robust and that of the album travel will continuously to improve with increasing cross border life capacity in a healthy mac for environment
spk_20: which regard to our international brands as they are all on the right track to gain market share in respective market and we expect to maintain the rose momentum in this year so in summary a we we well working very hard to make sure that we are going to continuously to gaining market share our boss for the china market and including china domestic and china albans as well as for the international market which will help us that alcohol pollo revenue hopefully to go almost back to their normal lives the level that you
spk_29: thank you for the questions our next question comes from jokes how from barclays be saucer question
spk_30: thank you very much had for taking my question and congrats on a very strong read out and all not my question is around margins
spk_11: the you you have i'm sort of a are optimized your post structure during a pandemic now the demands recovery a pub lies growing very fast
spk_2: by you also need to balance keeps called kind of cost efficiency while investing enough to capture the growth hell was wondering how you are you balance that and i'll remember i run pre cold it your or pm argue with around twenty percent and sort of how we should think about getting to that level or you lake city ny level by and of the year i think your longer term guidance on the margins eight or a their own twenty to thirty percent if i'm not mistaken thank you ah yes oh we actually a very glad to see the efficiency improvements across brands and the business segments saw the past three years
spk_11: for example the improvement of out that can't operating system allow us to maintain extensive coverage and active product innovation with says smaller size of products tossing him and also our content strategy has contributed to hire you the engagement and conversion rate which also help us to improve the and
spk_27: mcafee efficiency and yet in the in the long run
spk_31: but of course we don't take for example march and as a target that to as a natural result of a healthy more healthy business growth and this a plane caught control and we believe the majority of our business segments are currently operating at better margin comparing to pre core law
spk_2: level all an apple to apple basis and we will benefit from that if get ability and seen chief of the key i'll rent and are we're very confident to achieve a healthy
spk_19: and as we got it before twenty to thirty percent level and
spk_2: a healthy margin watch raimi driving very sustainable business growth in the future however in the in the in the valley shots and the lack in album business recovery and increase the makes for international of he a business el oso to some extent and negatively impact that book sep branded marches ah bad enough what this year our team was a well work as very
spk_28: hard i try and he'll have a very healthy and faster growth and at the same time to maintain a healthy margin
spk_2: if the questions when aiming for the next question
spk_11: next we have to life pro alex yell from jp morgan besides your question
spk_0: and cue measurements for taking the clutching in the congrats on strong demand recovery i think it's a reasonable to assume that you guys will go through a period of a very strong pent up demand recovery
spk_32: but how do you guys think about the growth strategy and the grocery target up hosts the and of demands are period for example on what's your strategy and growth target for twenty twenty four and twenty twenty five or accordingly how do you plan to them anna picked a resource during the and have dinner with period of versus the normalized across period thank you
spk_33: as a it added
spk_11: in a with an overload of my that will now talent or the players a travel industry factor are we earn that it also make her a trip that call growth a stronger company an intern salsa gross drivers for the china domestic market firstly we welcomed he knew play to expand our customer base a especially in the lower tier cities which have a large growth potential for rapid urbanization and me while we will focus on fire user engagement and sticking that which would translate into higher use of standing and frequency of
spk_0: for example we just hired cross any results from transportation to accommodation and other services and a family is the you the case to cover more shots hot travels in the area in addition to our comprehensive content that one does not only provide users with issue inspiration and planning a also opens the door to travel advertisement opportunity which is estimated to be over ninety billion or and the in twenty nine p
spk_34: and second and and most importantly is the about travel kit dot com growth it's one of the fuel companies that were able to maintain it's engagement with both chinese customers and international travel suppliers in the past three years and therefore we are very well positioned
spk_2: to continuously to benefit from the strong pent up demand for the album travel for example in the recent months it although the industry level for example the air capacity a steal at around recover to or fifteen to twenty percent level
spk_19: that's our about travel business that has significantly outpace the industry growth so going back to over forty percent compare with death
spk_11: pre pandemic
spk_2: and shirt and the for the international brands and international market we have made significant progress a unifying out that can't operating system standardize the the international friends and products as a lying the services without domestic standards or the
spk_11: is it may shed its were help us to try a long term synergy among our international brands
spk_19: as and we are also very they like to see the promotion of involved travel be inscribed in china's fourteen five year plan with our high quality won't stop travel platform and use a basis we are confident to make great contributions to the countries involved tories
spk_3: our wife is star to gain momentum
spk_0: and so in a in summary l with the three add the driver we think either in the long run though we can leave hey and continues to have a very healthy growth rate at a double digit tallies he double digit growth rate in the next couple years that you
spk_35: the questions next up we have to lie for from james leave from me to whole group please ask your question great thanks for taking my question now given a bottleneck armed of like capacity get laid out for outbound travel how should we think about the shape that recovery and the what are the top destination you're currently being felt like it
spk_19: and think games
spk_15: we have been discussing with the airlines are they are doing their best to to read read them or that capacity oh they saw what discussion all right now that capacity is about fifteen to twenty percent and hopefully by the end of june we'll see about fifty
spk_28: epicenter recovery at by the end of the year will see pretty much it's recovery to eighty two inuit ninety percent of the capacity of in our team will be able to outpace or the market as scene he said right now or though or the out a album foam city is only at fifteen to twenty percent but our volume already i recover recovered to forty percent of our pre college level so we're continuously working closely with our global palmer's to make sure we serve our album customers are with a strong product and service thank you
spk_11: the questions one moment for the next question
spk_3: backup we have the line prep time was told from jeffries resource your question
spk_11: hi good morning britain village men but the can my pressure on other question regarding the accomodation that me all cut management comment about the accommodation quite trend in the go back but market into one and coalition for really i'll be seeing a similar situation like i do as a new market thank you
spk_27: i think in terms of for the domestic travel average price made go slightly up when demands fully recovered to as the pasta frequently level which may also be offset by a potentially a higher makes from the lower end a lower tier cities
spk_11: ah we don't therefore we do expect a huge surge implies in china because firstly the hotel and air supply's are still quite stable comparing to free kobe level and overall call price index in china is still acts low level
spk_3: and that the for the on travel live the average if it
spk_11: yeah the average air is significantly higher your to flights capacity constraints and we believe the price would decrease as the country the is it will decrease as supplier increases the and the average what help price for our all travelers however is still lower than the prequels level you to the imbalance the recover status among the nations of course as you mentioned of for the western europe and eat us market the a the off increase quite significant
spk_36: play while of for most of the triple hall wrote that target customer they are in the asia pacific area where the a the ass out ah
spk_2: depressed or compare with the free copy level that you
spk_19: thank you for the questions
spk_14: next up we have the live from
spk_15: simon him from commons that precise your question
spk_0: ah hi morning thanks for your presentation
spk_37: i can grab a question to say again billy to keep your comment about competitions ah hearing that you you're actually penetrating interviewed rural area and you have shied you going overseas and perhaps can you help to quantify ah with all those common with some numbers and when you look for thinking about the yeah profit margin or the profitability of be respected business are you even road oh my cigar
spk_19: business alongside with the album or international business how are we how are they the defense and and also depends on how to use narcotics and
spk_2: yeah the at the margins said and if you look at a if you look at our margin level and a in for example twenty nine team
spk_11: the most profitable effect mentor for sure is the album travel fitness and a second one is our domestic the businesses and and than a for the international
spk_19: part of a for example our earth
spk_11: skyscanner business or the other well established the international brands they also have a very healthy margin
spk_19: that said for the trip dot com business is still in the investing pure it as do half of them losses but we are people will work very hard to drive the efficiencies of our growth strategy for the truth dot pompousness
spk_38: and in interns off the know what tier
spk_2: as cds so or lower end of the markets yes the that have them that would be very successful like any a lot of market share in the lower end of the business as their total revenue a contribution has south comparatively increase
spk_39: however for the margin for five of our domestic business
spk_0: we is i think as still the your high end of the business on admit to high end of the customer they contribute most of our marches and even after the at it yet is specially during that
spk_40: pandemic we've been buried
spk_41: working very hard to increase the efficiencies across all that little guys as think after the pandemic we have the confidence to continuously to maintain that south efficiencies earth also including the thought comment on that a business so we don't think that the margin would be a that impacted because of the revenue mix between them the to low end to the to the high end because not only from the mid to low end of the business we are in him
spk_11: his yeah we also further strengthen the our mark issue our that i'll mark usher in the mid to high end of the hotel business that it's a very critical to our overall our modern profile in the future thank you
spk_42: thank you for the questions we have another questions from ally of ways you have of beauty has please go ahead
spk_2: i'm good morning management or congress on a good quarter and think it would take him a question of i want to follow up on competition from a different angle on as well as a york had strategy on is a given the backdrop of very encouraging travel market recovery this year i'm just wondering if we see any changes in the competitive
spk_11: dynamic from shore video platforms i'm or do we anticipate potentially more competition in the have a market from new entrants and also related to that could imagine an update on the progress of are strategies a defend or market market position they are thank you
spk_0: ah yeah it's quite natural because i think travel industry it's one of the most attractive enough traits in a while to that's why oh oh you we always that can see a lot of the players sell potential players that trying to enter into the faith a hybrid yeah
spk_41: the we are very as always we are very confident in a bright future of this initially that to at the same time oh we have seen the contact platform pretty much focus on the location based the service and sell a product of with the overlap with our called that live at this moment is quite some limited and of course we're as always will work closely monitor the market the situation out well keep the investor update it
spk_43: that tell and most importantly we still say
spk_11: hello really very focused on developing our call capabilities such as our strong product innovation and the service and the fulfillment capabilities a so that will make sure that we provide always at the most reliable services and bricks so like customer experience or to the a customer
spk_0: yet and
spk_2: we we're very fortunate to be in the sir
spk_0: promising industry and the as always we will make sure we do the best as in the core competence in the industry has we are the experts
spk_44: thank you the questions one moment of the next question
spk_0: next up we have to lie from joyce cue from bank of america please go ahead i can only manage money thank you for taking my questions or concerns regarding the international business or could you actually help elaborate know about your strategy perfect or com ah when do you expect the business to be profitable occipital com is going and going to take steer well which global competitors out what are your cheek
spk_1: comparative advantage to guys share sex
spk_2: and the i just don't call it is there a kiddie a lot of more than ten on the strength for us is a couple freezer for we provide one stop shopping platform i saw way you log on trip dot com consumers who are be able to find everything they need when they cover a broad second delay the users experience or a p p or is there a smooth that is also a many years of from experience starting from asia market for the lay we also have focus a lot on customer service are we offer twenty four hours ah
spk_3: languages and come
spk_2: timely response to our customers and very lastly i think he utilizing our students from all bombed were also be able to negotiate very good deals for our customers all over the world are so these are our strategy it's a integrated ah a game plan or starting from asia or to the rest of the world thank you but questions next we have the line from pinhole from he hitchcock the one moment please a lot oh good month a month or quarter with a see through this the to not him for a i oh so well what work that he that he took a your lungs the a new a i thought they found the park and knowledge of kids that he he felt kinda still of i'm
spk_5: a or information about father of your a i thoughts on the also the put console application you lot of flat flat pool for your business
spk_4: you know what what's the potential thank you
spk_45: oh i knew a a i'll check in is at the very early explore a curry early stage it mean they have three functions first the for it enable our customers to find that more relevant information faster and more assists
spk_6: since ah
spk_7: second delay were able to link their search results to our existing products are more efficiently and thirdly it's were also enable our service team to provide a better services are we are working very hard i try to improve our efficiency by utilizing
spk_46: at the new technology as always by they still at an early stage thank you
spk_8: thank you for the questions that i prefer to any pressure to be on i like and a call back to be show cheaper cooker rematch
spk_9: thank you thank everyone for joining us today you can find the transcript and a webcast the for today's call on investors so cheap they'll come we look forward to speaking with you on our first quarter of twenty twenty three earnings call thank you and have a good day they link a very much
spk_4: if conclusive a conference call thank you for your party's patients who is coming the conference will begin shortly to raise and lower your hand during una you can dial star one one in
spk_10: the conference will begin shortly to raise and lower your hand during una you can dial star one one yvan thank you for standing by welcome to take up congress twenty twenty two
spk_2: q for earnings conference call at the time or participants are in the listen only look after the three cats presentation they'll be a question and answer session thought a question do into session you need to press start one one or the telephone with the advice that to date conference is being recorded
spk_11: i now like to have to come over to your first because today miss michelle t e nayar doctor and cupid go ahead
spk_10: thank you
spk_11: the morning and welcome to chip they'll come good fourth quarter of twenty twenty two earnings conference call johnny me today on the call or mr kim flam executive chairman of the border with can some chief executive officer and miss lee the one chief financial officer you are in the call we will discuss our future outlook and performance which are forward looking statements made the under the safe harbor prohibition of the us private security litigation reform act of nineteen ninety five forward looking statements imovie here it's risks and uncertainties as such a result my been with hero with different
spk_10: it is expressed the day
spk_11: a number of potential risks and uncertainties are outlined in trip come groups public filing with the security and exchange commission kids they'll come group that not and the take any obligation to update any forward looking statements except as required under applicable law
spk_10: jan jan and sunday share our strategy and business of the operating highlights and financial performance for the fourth quarter of twenty twenty two as well as the the outlook of the first quarter of twenty twenty three after the prepared remarks we will happen to kill any session
spk_11: with that i will turn the call alright to james james please it's
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spk_10: it's pitch think a games good morning everyone as a quick overview thank you for despite the outbreak of the pandemic our total net revenue grew by seven percent year over year we feel steady improvement in our overseas businesses which have outgrown the pre pandemic level
spk_11: for the full year of twenty twenty two a total net revenues remained stable year over year our adjusted ebitda say the positive for the past three years despite pandemic challenges thanks to our teams efforts and are effective cost the control and efficiency improvements now i would like to share what we have seen in each region
spk_2: first in the china market
spk_10: for china market the fourth quarter of twenty two and a kid was that darkness before dawn why domestic travel performance was soft october and november two two viral resurgence and a strict a pandemic controlling measures the announcement of drop in quarantine requirement and the reopening of countries border in december was the key turning point in china's cabo recovery
spk_11: although all this fight china domestic travel market being largely impacted by pandemic we continue to adapt our strategy to outperform the market our same city the occasion hotel bookings in this quarter grew by ten percent above twenty nine clean freak called it the level and a was forty percent higher than the pre pandemic level for the four year of twenty twenty two our domestic air ticket him poking was also recovery faster than the market quarter to eight we are glad to see that the long haul trouble bookings have strongly recovered and a have already surpassed twenty nine pm pre corbett the level and the short short for cabo grow room a robust and has nearly doubled his twenty nine clean pre core with the level with both lahore in the short or tall with immense coming back we anticipate our domestic business to remain on the strong growth trajectory for the rest of twenty twenty three second all found china album trouble has see out that the man there has been a robust especially after the announcement off the the openly in december in queue for all on air ticket bookings untrue fell come group platform increase the by over two hundred percent year over year and album hotel bookings increase the by will hundred forty percent year over year he meant for album kabul continue to search in the first two quarters of two months off twenty twenty three with album trouble bookings increased by more than three hundred percent compared to the same period in twenty twenty two
spk_10: back in twenty nine key mainland china was the largest album kabul market in the world with chinese travelers peeking over more than one hundred fifty million trips overseas
spk_11: we're pleased to see them gaining confidence in traveling and i eager to explore the world that game after three years right now the bottleneck life in the album flight capacity which is currently only at fifteen to twenty percent off pre that level and is like
spk_12: largely limiting the obama recovery pace of china's album trouble we anticipate that the aviation industry will set in motion plans to restore light capacity and that album trouble will pick up the pace in the coming quarters
spk_2: third global market
spk_11: on the international friend the europe and america markets continue to show steady improvement
spk_2: why the opening up off the asia region further accelerated the recovery the apec market
spk_11: full flight performance
spk_18: the overall air ticket will keep our global platform have achieved over eighty percent year over year growth air tickets bookings in india and american market continued to show strong growth
spk_11: the a pack a region was also picking up the pace and the growling at over three hundred percent year over year
spk_48: over on the consistent occurrence currency basis of all air ticket revenue from the global platform have already fully recovered to the pre pandemic level
spk_11: for hotel business
spk_10: although hotel bookings on our global platform hit a record high and the was above pre corbett level full fourth consecutive quarters with the a hotel bookings in now china market increased by one hundred forty percent versus twenty nine
spk_11: key now i would like to of strategic highlights on the following items first accommodation over the past three years we have duke a strong use case in china i'm short whole and continue to remain at our advantage in law hobble the order to serve a lot evolving need for the customers and the create value for our partners
spk_3: we continue to press ahead with improvements in product the coverage in the lesion inspiration and the recommendation in the past quarter
spk_11: with the hotel market we have seen hotel evolving into destination in themselves which travelers emphasizing the quality of their accommodation
spk_2: package deals cover seventy per cent more prophet peace then twenty twenty one and the more than seven thousand a high end of properties joining hands with us to help our customers to get the best value for money
spk_11: over two hundred forty cells in hotels also join our trip plus program to gain access and provide extra benefits of a high quality loyal customers
spk_2: in queue for over fifty percent of our cook plus reservation come from high and hotels in the lot here city we continue to leverage our gateway product to acquire new customers as we continue to strengthen our dynamic pricing structure strategy cope branded membership program also help the extended our reach to over thirty million joined members which is six times the number he twenty nineteen pre poll that level second global business we remain confident in our china customers is i to then throw overseas especially with cool vid fading away and the world in briefing no mercy
spk_19: we stayed focused on tightening connections with our international partners and strengthen the engagement with our chinese customers
spk_2: as one of the very few companies invested heavily in global supply years relationship even during the pandemic period
spk_19: well well positioned to capture the strong had kept the meant for all been trouble
spk_2: the addition to the resumption of china all bomb cobble yet another great opportunity lies the in the acceleration of trouble recovery the a pack region strong prompt city to cobble is in the region provide a good opportunity for us to capture more booking while we concluded our year with the strong growth the international hotel in air ticket business
spk_11: our overseas activity t business has also delivered great performance with gm the increased by over one hundred thirty percent year over year we will continue to source for unique offerings and the localized our campaign to gain
spk_2: could actually or local the men while improving our competitiveness and the service capability to win over the local mindset
spk_11: good content platform following the root root of the global travel activities demand for inspiration lotus destination continue to increase were seen customers coming into our platform not only to book a ticket or hotel room
spk_19: but also to get it in fire to foot the their next fix it
spk_11: in the fourth quarter our content generation pipeline and the users engagement to capabilities continue to improve the number of kill alex increased by forty seven percent year over year in twenty twenty two new the generated content also increase to five thirty three
spk_19: cent compared to the previous year average number of the content viewed per user also continue to increase in line with our commitment to inhalation we have also launched our experimental a i had bought tripped him our our trip dotcom platform fifteen is that generate his he i had bought integrated with our open a i a guy in his visa
spk_2: to provide the colors with life assisted and provide the most the relevant an authentic trouble recommendations to our customers
spk_19: fourth corporate through responsibility while strengthening our capabilities to inspire and serve customers to explore the world we remain committed to pushing forward with our cooperate responsibility
spk_11: first common prosperity regarding our rural revitalization initiative
spk_2: our plan is to roll out ten high quality control retreat to in power one hundred the rural destinations and northrop ten thousand rural poor tourism talon within five years over the past year thirteen you felt com cringe you retreat would be making a total of twenty one pinto seats currently operation
spk_19: right now eighty percent of the staff come from the local and their average income was increase by around seven thousand aren't the per year the like it to the able to empower the locals and help pursue the common prosperity second unsustainability
spk_2: we announced our long term green poorest them both which include launching over ten thousand low carbon trouble product promoting sustainable kabul and engage one hundred and village habilis the in carbon low carbon practices in aiming to for the reduce
spk_19: use carbon emission across it's operation
spk_2: to meet increase that the meant for sustainable couple options i like have felt come rent launched it's problem off that option for travelers to address the a flight emission by supporting a portfolio of caustic high impact climate project
spk_19: in line with the un sustainability
spk_2: develop the goals
spk_19: in october to sell group has officially joined the global system that fill the sustainable tourism council s t f p c as the member to promote sustainable tourism standard in the travel and tourism
spk_2: sector
spk_19: finally during the quarter if thou call with named contact the center of the year twenty twenty two at the international customer relationship excellence award and a champion for good in singapore demonstrating the recognition
spk_3: of our rent for his service excellence and a focus our local commitment
spk_19: in conclusion we're encouraged by our results in the recent a strong recovery in the market
spk_11: i would like to think of what team for they a dedicated efforts in maintaining quality services during the past three years as we look into the future trip they'll come group look forward to working more closely with our global partners across the global ma
spk_2: cricket to shape our products and services around the custom money and pursue or for value
spk_19: working together we will be able to deliver memorable trip for travelers where wherever they choose to explore and visit in couldn't pay twenty three and a be young with that i wouldn't allow trend a poor to thing the
spk_2: i think jay for money every one for the fourth quarter of twenty twenty two trips or cancun with bought it and that revenue of our and the five billion representing a seven percent increase from the same period last year and a twenty seven percent decrease run the previous quarter primarily due to borrow with the truth and strip and damage control in the china domestic market during the first two months of the quarter for the full year of twenty twenty two net revenue what our and be twenty billion which remained stable year over year
spk_19: mainly driven by recovery in overseas markets and partially offset by a soft of woman in the try to domestic market
spk_3: accommodation reservation revenue for the fourth quarter of twenty twenty two was i and be one point seven billion
spk_2: representing a twelve percent decrease year over year and a forty two percent decrease quarter over quarter recovery tool fifty seven percent of the twenty nine pm level
spk_19: for the four year of twenty twenty to accommodate your reservation revenue was i'm thirty seven point four billion
spk_2: representing a nine percent decrease round the twenty twenty one
spk_19: in the fourth quarter the china domestic market with largely impacted by the bar surgery and stripped him down pandemic control
spk_2: and limiting the hotel business performance all the other hand hotel booking our our international platform remain robert
spk_11: and above the pre cool that level
spk_2: transportation pivoting revenue for the fourth quarter of twenty twenty two was i am the two point two billion representing a forty five percent increase year over year and a sixteen percent decrease quarter over quarter
spk_0: recovering to sixty four percent of the twenty nine pm level for the four year of twenty twenty two transportation ticketing revenue what i'm the eight point three billion representing a twenty percent increase from twenty twenty one
spk_20: though pick transportation recovery momentum was disrupted by the resurgence of coby cases for the fourth quarter while our international air saw the sequence show improvement compared to the previous quarter mainly driven by the steady improvement in the europa us market and the robber to work recovery in the asia pacific market
spk_11: that is to our revenue for the fourth quarter of twenty twenty two was i'm be one hundred and sixty four million represent he a seven percent decrease year over year and a fifty eight percent decrease quarter over quarter recovering to twenty one percent of the twenty nine p level
spk_21: for the full year of twenty twenty two package tour revenue was and the seven hundred and ninety seven million representing a twenty eight percent decrease brown twenty twenty one
spk_11: probably travel revenue for the fourth quarter of twenty twenty two was i'd be two hundred and seventy seven million representing a twenty five percent decrease year over year and a twenty five percent decrease quarter of a quarter recovering to seventy four percent after twenty nineteen level
spk_49: for the four year of twenty twenty two we travel revenue was our and be one point one billion representing a twenty percent decrease from twenty twenty one
spk_23: air ticketing bookings our corporate travel platform was impacted by the pandemic control measures and that limited flight capacity why accommodation bulking continue to go to gain momentum despite path and pandemic challenges and was double the twenty nineteen level
spk_0: excluding share these the compensation charges our total adjusted are pretty expensive was fifteen percent lower than the previous quarter and a was a saving of thirty three percent compared with the same period in twenty nine pm
spk_24: for the full year of twenty twenty two total adjusted our previous benefits with thirty four percent lower than the twenty nine level this reflects our effective cost control and efficient operating management across that miss line adjusted product development expenses for the fourth quarter decrease the by fifteen percent from the previous quarter
spk_30: and was a saving of twenty percent compared with the same period in twenty nine p
spk_19: i just said g and they've been themselves for the fourth quarter remained flat flattish compared to the previous quarter and a to the same period in twenty nine p for the full year of twenty twenty two adjusted product development expensive and adjusted dna expensive what twenty percent and eleven percent lower than the twenty nine pm level respected me
spk_2: as we continued to learn a to run the in and maintain a stable heck come adjusted sales and marketing expenses for the fourth quarter decrease the by twenty one percent from the previous quarter and fifty five percent compared with the same period of twenty nine p
spk_19: for the four year of twenty twenty two adjusted thousand marks the expensive was fifty five percent lower than twenty nine pm level as we continue to stick with our stringent out control protocol
spk_0: adjusted it is that was our and be two hundred and eighty six million for the fourth quarter compared with our and be fifty four million in the same period last year and in the one point four billion in the previous quarter
spk_20: adjusted ebitda margin was six percent for the fourth quarter compared with one percent in the same period last year and twenty one percent in the previous quarter
spk_50: i loaded a for ordinary sheer and for a the year where i am be three point one two or us dollar forty five cents
spk_25: the fourth quarter of twenty two twenty two and ninety two point one for or us dollar thirty one sense for the four year of twenty twenty two it's true the share these the compensation charges and fair value changes of equity securities in that month exchangeable see me alone now get diluted earning per ordinary sheer and for eighty as were i'll be
spk_51: seventy six cents or us dollar eleven cents for the fourth quarter and are in the one point nine seven or us dollar twenty nine cents for the full year of twenty twenty two
spk_3: as of december thirty first twenty twenty two the balance of cash and cash equivalents restricted cash short term investment how to maturity time deposit and financial products what i'll be sixty million billion or us dollar
spk_19: eight point six billion
spk_28: now turning into the first quarter of twenty twenty three we were like to share some colors of our business
spk_3: seeing the lifting off corbett related travel restrictions china domestic travel market as seemed very strong release of pent up demand in the first two months of twenty twenty three
spk_19: with industry level air passenger ball and recovered to around eighty percent of twenty nine pm level and hotel rep paul fully recovered in recent weeks
spk_2: the international flight the path of the also recovered to fifteen to twenty percent off the pre have them that level and continues to movie up
spk_19: water to date we are glad to deliver strong without across our business life
spk_2: birth for our domestic hotel an air bookings have already surpassed the twenty nine pm level
spk_3: second our album travel booking have grown by more than three hundred percent compared to the same period last year
spk_0: and our hotel and air picketing bookings out blow volvo platform continues to grow by triple digit year over year to conclude the lifting of pandemic related restriction and reopening of country bother have been an important driver to the recovery of robo travel and out businesses
spk_20: we have her we acknowledge the uncertainty regarding potential looming new wave of it that may disrupt the recovery trends however we are confident you traveler strong desire for travel and up belletti to handle challenges
spk_29: we will keep the operation been and continuously to enhance efficiency and invest to seize opportunities in a calming future with that operator please open alive for question
spk_30: like as a reminder to ask a question judith press thought one one on the telephone you can say request please press paul one one again
spk_2: hardly beat your request to watch question at each time he stand by what we called particular new roster with questions we have the my from brian come from cpp false your question
spk_11: the more you can station the other michelle's bucks for kicking my questions so a month when the definition of we have seen decent with how we were the doesn't own business so are just no wonder commencement show a bit more color and details on the performance for our
spk_3: domestic autobahn and if it metal performs rape respectively in recent weeks thank you
spk_2: oh yes thank you for i our performance for domestic opened and also international are a very strong of with a nasty business we have already see a hotel and air tickets the past prequels that level of full album busy is a we have seen three hundred since acquitted to date rose compared to last year
spk_11: or though the air ticket
spk_31: capacity has not fully recovered the yet certainly on the platform oh oh for global platform are we have seen three digits close in or we in the regions so we're confident that we can work hard to catalyze the opportunity in twenty twenty three
spk_2: thank you
spk_19: that gives questions
spk_2: like questions from july of alex put from morgan stanley please go ahead thank you are congratulation management on extremely strong results in here today performance
spk_11: my question is related to our expectation for rest of the year twenty twenty three we'll total revenue fully recovers to the prequels levels sometime this year forgive very much
spk_2: a thicket alex
spk_11: it's a despite very limited visibility is due to comparatively shot blocking windows and a computer with a flick of it
spk_23: a period we have fact that their recovery momentum of the china elastic travel oh will remain robust and that of the album travel will continuously to improve with increasing cross border flights capacity in the house even met for environment
spk_0: oh which regard to our international brands
spk_32: they are all on the right track to gain market share in respective market and we expect to maintain the rose momentum in this year so in summary a we we will working very hard to make sure that we are going to continuously to gaining market share our boats for the china market a true the china domestic and china albans as well as for the international market which will help us that how paula revenue hopefully to go almost back to their normal lives the level that you
spk_11: thank you for the questions our next question comes from joke shall from barclays because your question thank you very much shirt for taking my question and congrats on the very strong without and all look ma course she's around margins you have love of are optimized your post rock you're doing a pandemic now the demands recovery epub lies growing very fast and by you also need to balance keeps called kind of cost efficiency while investing enough to capture the growth fell was wondering how you are you back
spk_0: and sat and i'll remember a around pre cold it your ob margin was around twenty percent and of how we should think about getting to that level or you lake city there level by and of the year i think your longer term guidance on the margins eight or a their own twenty two thirty present if i'm not mistaken
spk_34: thank you
spk_2: ah yes
spk_19: oh we actually a very glad to see the efficiency improvements across brands and the business segments sure the past three years for example the improvement of our backend operating system allow us to maintain a extensive coverage and active product innovation with says small
spk_11: size of products tossing team and also our content strategy has contributed to hire you the engagement and conversion rate which also help us to improve the market he efficiencies
spk_2: and yet in the in the long run
spk_11: but of course we don't take for example march and as a target that to as a natural result of a healthy more healthy business growth and this a plane caught control and we believe the majority of our business segments are currently operating at better margin comparing to prequel the lab will all an apple to apple basis and will what benefits from better get ability and synergies between our rent and ah we're very confident to achieve a healthy
spk_3: and as we got it before twenty to thirty percent level and
spk_0: healthy margin watch raimi driving very sustainable business growth in the future however in the in the in the valley short and the lack in about this business recovery and increase the next for international of he a business wow so to some extent and negatively impact the who serve branded marches ah bad enough what this year our team was a well work a very
spk_35: heart or try and she'll have a very healthy and faster growth and at the same time to maintain a healthy margin if the questions when england question next we have delayed pro alex yell from jp morgan precise your question thank you measurements for taking the clutching minutes and grabs armstrong and demand recovery ah i think it's a reasonable to assume that you guys will go through a period of a very strong pent up demand recovery
spk_19: but how do you guys think about the growth strategy and grocery target up hosts the and up demands are period for example what's your both strategy and close together for twenty twenty four and twenty twenty five
spk_2: accordingly how do you plan to them
spk_28: allocate to resource during the end of the mailing periods of versus the normalized across period thank you
spk_3: i think it at eight o'clock with an overload of mother well now
spk_11: or the players a travel industry at that time are we
spk_2: as a automaker a check the called growth a stronger company an intern salsa ross drivers for the china domestic market as firstly we will continuously to expand our customer base especially in the lower tier cities which have a lot girl
spk_11: the potential for rapid urbanization and meanwhile we will focus on fire user engagement as they can that which would translate into hire you as a standing and frequencies are for example we just hired cross any of these shows from transportation to accommodation and other services an extended the you the case to cover more shots for travels in the area
spk_3: in addition our comprehensive content that on that not only provide users with issue inspiration and planning for also opens the door to travel advertisement opportunity which is estimated to be over ninety billion or and the in twenty nine p
spk_11: and second and and most importantly if the about travel tips on how growth it's one of the fuel companies that were able to maintain it's engagement with both chinese customers and international travel suppliers in the past three years and therefore we are very well positioned to continuously to benefit from the strong pent up demand for the album travel for example in the recent months it although the industry level for example the air capacity feel at around recover to fifteen to twenty percent level
spk_2: that's our about travel business has has significantly outpace the industry growth so going back to over forty percent a computer with death
spk_28: pretend that make and shirt and the for the international brands and international market out we have made significant progress in unifying out that can't operating system standardize the the international friends and products at a lying these services with our domestic standard or the
spk_0: it may shed its were help us to drive long term synergy among our international brands
spk_37: as and we are also very they like to see the promotion of involved travel be inscribed in china's fourteen five year plan with high quality won't stop travel platform a user basis we are confident to make great contribution to the countries involved too or isn't was a star to gain momentum
spk_19: and so in a in summary oh with the three add earth and the driver
spk_2: well we think either in the long run though we can maintain and continues to have a very healthy growth rate
spk_11: at a double digit tell he said double digit growth rate in the next couple years that you
spk_19: the questions next up we have to live from james leave from me to whole group please ask your question
spk_11: great thanks for pick my question now given a bottleneck on the fly capacity get laid out for outbound travel how should we think about the shape that recovery and know what are the top this nation you currently being have felt like it
spk_19: and think games are we have been discussing ways the airlines are they are doing their best to rip to read read them or the capacity oh they saw what discussion all right now that capacity is about fifteen to twenty percent and hopefully ah by the
spk_38: end of june we'll see about fifty percent to recovery at by the end of the year will see pretty much it's recovery to eighty two to ninety percent of the capacity of in our team will be able to outpace or the market as cindy he said right now or though
spk_2: the out a album capacity is only at fifteen to twenty percent but our volume already i with to forty percent of our pre college level so we're continuously working closely with our global partners to make sure we serve our album customers are with a strong pro that and service thank you
spk_0: the questions one moment for the next question next up we have the lie prep time was told from jeffries because your question
spk_40: hi good morning bank village men but the can my question either question regarding the accomodation affect me i'll many common comment about the accommodation biden and trend in the go back that market into one and literally brief or be seen a similar situation like i do as a you up market thank you
spk_41: i think your thomas ah for the domestic travel average price made go slightly up when demands fully recovered to as the pasta frequently level ah which may also be offset by a potentially a higher makes from the lower end a lower tier cities ah we don't therefore we still expect a huge surge implies the in china because firstly the hotel and air supply's are still quite stable comparing to recover level and overall call price index in china is still acts low level
spk_11: that the for the on travel both live the average if it and it it yeah the average air prices significantly higher you to flights capacity constraints and we believe the price would decrease as the country the is it would decrease as supplier increases
spk_42: the and the average what help fight for our all travelers however if your lower than the prequels level you to the imbalance the recover status among amanda nations of course as you mentioned for the western europe and eat the us market the a the off increased quite significant
spk_2: play while for most of the triple hall group that target customer they are in the asia pacific area oh where the abs of steel
spk_11: a depressed or compare with the free coffee level thank you
spk_0: thank you for the questions
spk_41: next up we have the live from simon him from comments that precise your question
spk_43: ah hi morning thanks for your presentation i i kind of a question to so i can really to keep your comment about competitions
spk_11: a hearing that you you actually penetrating in rural area and you have shouted you going overseas and have can you help to quantify with spot all those common with some numbers and when you look for new thinking about the yeah profit margin or the profitability of be respected business you even know or massacre business alongside with the album or international business how are we how are they did defense and and also depends on how to use could and yeah the at the margins said and if you look at it if you look at our margin level and in for example twenty nine team
spk_0: the most profit both that mentor for sure is the album travel business and a second one is our domestic the businesses
spk_52: them
spk_2: the and than a for the international
spk_0: part of a for example our skyscanner business all the other
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