A rare profit case in the online travel industry in the first half of the year.
The impact of the epidemic on the tourism industry has not yet fully subsided, but Tong Yilong has handed in an answer sheet for two consecutive quarters of profit.
After the close on August 28, Tongcheng Yilong’s second-quarter financial report and 2020 semi-annual report announced that although the second-quarter revenue data affected by the epidemic still dropped significantly year-on-year, compared with the first quarter, the company’s second quarter Since the quarter, the two major businesses of accommodation and transportation have recovered significantly. According to financial report data, in the second quarter, Tongcheng Yilong’s revenue was 1.201 billion yuan, of which accommodation reservation revenue was 384 million yuan, an increase of 67.8% from the first quarter, and transportation ticket revenue was 726 million yuan, year-on-year The rate of decline also slowed from 45.4% in the first quarter to 22.5%.
It is worth noting that Tongcheng Yilong’s adjusted net profit in the second quarter increased from 78 million in the first quarter to 196 million, and the net profit margin reached 16.3%.
At the media communication meeting of the performance report, Fan Lei, Chief Financial Officer of Tong Cheng Yilong, said that there are two main reasons for this achievement: one is the strict low-cost operation model, and the other is that the company has seized the low-tier cities in time. Sink the market.
In fact, improving the efficiency of the entire supply chain and the demand side through digital technology is the underlying logic of Tongcheng Yilong’s low-cost operation model since the merger. Specific practices include automatic fulfilment of accommodation orders, standardization of online customer service, etc., to control and improve personnel The purpose of efficiency.
During the epidemic, Tongcheng Yilong further accelerated the pace of digitalization. Take the transportation ticketing service with the largest revenue share as an example. At present, the online booking rate of railway tickets has basically reached saturation, and the total ticket volume is three times that of the high-speed railway. The upscaling rate is extremely low. Tongcheng Yilong began to focus on building the bus ticket machine business since last year, and it is sinking into the market.
In addition, Tongcheng Yilong also provides VR technology for scenic spots to create online scenic tours, revenue management systems for airlines, and PMS management systems for hotels.
When the first wave of Internet demographic dividends disappeared, the sinking traffic of third- and fourth-tier cities became the main entry point for many platforms. Tongcheng Yilong will naturally not miss the opportunity to obtain traffic in low-tier cities.
According to the financial report, as of June 30, 2020, about 85.9% of Tongcheng Yilong’s registered users are from non-first-tier cities, of which 81.4% of the platform’s average monthly active users are from Tencent’s WeChat platform, and about 63.1% of WeChat New paying users of the platform come from China’s third-tier or lower cities. Through WeChat Pay and Mini Programs, Tongcheng Yilong obtained a lot of