Chinatavelnews, Ritesh Gupta – Tongcheng Journey Holdings continues to increase its person base in China, for the reason that on-line journey firm shared that the full variety of vacationers served within the 12 -month interval elevated by 9.three% to 1,928.1 million in 2024.
Sharing its outcomes of the fourth quarter (fourth quarter), the net journey firm attributed progress within the collected variety of customers that served the “steady enchancment within the person’s buy frequency.”
Tongcheng reported that along with making the most of Tencent platforms, in addition they targeted on bettering their very own digital presents and loyalty packages, finally bettering the person’s worth and the adoption of the applying of the applying.
Tongcheng has strategically diversified its visitors sources, with its more and more elementary utility. In the course of the previous yr, the corporate elevated investments in its impartial utility and launched particular advertising campaigns to accumulate new customers. Consequently, the every day energetic customers of the applying (DAU) skilled vital progress, slightly than duplicate yr after yr.
As well as, annual month-to-month cost customers (MPU) elevated by four.four%, reaching 43.1 million for the yr.
Development directed by the Affiliation with Tencent
Tongcheng harassed that the workforce repeatedly capitalized market alternatives and surpassed the market with “wonderful outcomes.”
For the fourth quarter of 2024, Tongcheng’s complete revenues elevated by 34.eight% yr after yr to RMB four.237.6 million.
The adjusted web profit elevated by 36.eight% of RMB 482.5 million to RMB 660.2 million, which represents a adjusted web margin of 15.6%.
The robust efficiency of Tongcheng is essentially attributable to its affiliation with Tencent Group, with the Weixin ecosystem taking part in a very essential function, particularly the contribution of the Weixin ecosystem.
Recognizing the expansion potential, Tongcheng is actively increasing the scope and eventualities of its cooperation with Tencent Group, bettering visitors assist, promoting, advertising promotion and associated companies.
Tongcheng’s progress technique is essentially anchored in its affiliation with Tencent. This collaboration, lately solidified by a 3 -year settlement that extends till July 2027, focuses on considerably the Tongcheng market share throughout the mass market in China.
Tongcheng emphasizes the essential needn’t solely to focus on the acquisition of customers and the visitors assist by means of the intensive person base of Weixin and Cellular QQ of Tencent, but in addition to increase their revenue flows by means of presents resembling QQ Music and Tencent Video Membership Playing cards.
Earlier than the top of the brand new settlement final yr, a devoted inside evaluation workforce analyzed the transactions of the business, making the most of knowledge on the customers of QQ Weixin and Cellular, visitors stability and historic service charges to ascertain optimum service charges and fee charges.
As well as, the workforce decided the annual limits for service charges, making certain monetary stability. Trying in direction of the longer term, Tongcheng’s central technique consists of increasing its scope to the decrease improvement cities in China, for which it continues to see Tencent as a priceless strategic ally. As well as, Tongcheng meticulously evaluated key components that embody the project of promoting and advertising finances, projected demand and revenue of ticket merchandise and transport lodging, and strategic alternatives, resembling capitalizing on the bounces of the mass market and increasing in decrease stage cities.
Earnings combination
Tongcheng reported substantial progress in his important enterprise of the net journey company, with revenue reaching RMB 14.2 billion in 2024, a rise of 22.1% yr after yr. Tourism revenue for a similar interval was RMB three.1 billion.
Core Ota’s revenues had been RMB three.5 billion, 20.2% and tourism revenues had been RMB 780 million within the fourth quarter.
Within the fourth quarter, the revenue of transport ticket companies elevated by 17.zero% yr after yr to RMB 1,723.zero million. By 2024, revenue from transport tickets elevated by 19.9% yr after yr to RMB 7,229.zero million. This progress was primarily pushed by a rise within the quantity of tickets and enhancements to the worth -added services and products.
As well as, the worldwide air ticket phase skilled fast growth, pushed by aggressive costs and aggressive advertising methods, in line with the group. Because of this, the worldwide quantity of air tickets elevated by greater than 130% yr after yr.
In its lodging enterprise, revenues grew by 19.7% yr after yr to RMB4,668.2 million final yr. The workforce shared that it achieved most data on each room nights bought and revenue.
Chengxin AI system
The group additionally shared that it has labored in Chengxin, a patented generative system. It helps customers to work of their customized journey plans and examine lodging tailored to particular person preferences. Chengxin has been built-in into a number of exterior generative the AI platforms and cellular units to increase the group’s person scope.
Tongcheng has additionally developed digital assistants for a number of vacationer locations. Along with offering customized recommendations, they facilitate simplified interactions.