Chinese travel giant Ctrip is still in trouble
The Chinese economy is climbing out of the abyss, but for some industries, climbing time may be longer and more difficult.
Chinese online travel giant Ctrip Group (Trip.com Group Ltd., TCOM) announced on Thursday night that profits in the first quarter fell sharply. Revenue fell 42% year-on-year. But there is even worse news: Ctrip Group, which is listed on the NASDAQ, expects revenue to fall 67% to 77% in the second quarter.
The company's first quarter results benefited to some extent from January's strong performance: hotel bookings in the first 20 days of January grew at a double-digit rate. Before the epidemic caused cross-border travel to basically stop, international travel revenue also increased in the first half of the first quarter.