Tongcheng Travel: revenues hit record high in transportation and accommodations in Q2

The operating revenue of Tongcheng Travel, a travel agency based in Suzhou, Jiangsu province, was approximately 2.86 billion yuan ($393 million) in the second quarter of this year, seeing an increase of 117.4 percent on a yearly basis, according to the Q2 financial data released on Tuesday.

It mainly comes from accommodation booking business and transportation ticketing business. During the period, the revenue generated from transportation ticketing services was 1.49 billion yuan, marking a record high with an increase of 141.2 percent on a yearly basis, and an increase of 59.5 percent compared to the same period of 2019.

Data showed that during the second quarter, the transaction volume of Tongcheng Travel reached 59.7 billion yuan, up 145.7 percent on a yearly basis.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rocketed 175.8 percent, going from 292 million yuan to 806 million yuan compared to the same period last year. The adjusted EBITDA margin increased from 22.2 percent to 28.1 percent.

Adjusted net profit grew from 112 million yuan to 592 million yuan, seeing an increase of 428.9 percent on a yearly basis.

Tongcheng Travel pointed out in the report that the demand in the tourism market in China has increased significantly, and showed a trend of accelerating growth quarter by quarter.

The national tourism boom was further unleashed during the holiday, adding vitality to the industry.

Tongcheng Travel also said they remain highly optimistic about China's tourism industry as there is still ample room for the development of tourism-related infrastructure, especially in sinking markets, and the tourism market is expected to continue to grow significantly.

In addition, the authority has introduced a number of policies to promote China's tourism industry and encourage domestic tourism consumption.

The fundamental shifts in consumer behavior, such as the growing popularity of short trips and local holidays, will also be an additional thrust to drive the industry going forward.