Tuniu’s market share in Q4 2018 was 28.63%, achieving full-year Non-GAAP profit

China News Service, March 5th. On March 4th, the "China Online Vacation Travel Market Quarterly Monitoring and Analysis for the Fourth Quarter of 2018" released by Analysys showed that in the fourth quarter of 2018, China Online The transaction scale of the vacation tourism market reached 22.512 billion yuan, a year-on-year increase of 15.5%. Among them, Tuniu’s market share in the fourth quarter of 2018 was 28.63%, which continued to increase from the third quarter and continued to rank first in the industry.

On February 28, Tuniu’s latest financial report data for the fourth quarter of 2018 and 2018 showed that in the fourth quarter of 2018, Tuniu’s packaged travel product revenue increased by 23.3% year-on-year; 2018 non-U.S. accounting Standard (Non-GAAP) net profit was 10.9 million yuan. This is the first time that Tuniu has achieved full-year non-GAAP profit since its listing. At the same time, Tuniu also achieved positive operating cash flow of 270 million yuan for the first full year since its listing.

Q4 Online vacation travel has grown steadily, and Tuniu’s market share continues to lead the industry

In the fourth quarter of 2018, although online vacation travel has turned from “high” to “low” along with seasonal fluctuations in the industry ", but driven by the National Day holiday, winter travel, "Qing Dynasty holiday", winter vacation study, and Christmas and New Year's Day travel, the online vacation travel market continued to grow steadily, with transaction size increasing by 15.5% year-on-year.

Analysys believes that the National Day holiday, as a window period for long-term tourism, has a significant role in promoting domestic mid- to long-term and outbound tourism, and the relatively high unit price of users of such products ensures the transaction scale in the fourth quarter. Achieved double-digit growth year-on-year.

In this industry environment, Analysys monitoring found that Tuniu’s online vacation business increased by 20.2% year-on-year in the fourth quarter. This stable growth was largely due to marketing and resource optimization, which made operations Efficiency is greatly improved. In terms of marketing, Tuniu Lvpai debuted on "Double 11", offering a 50% discount on deposits, free gifts for placing orders, free final payment for 5 couples, and "koi" prizes to give away "air tickets + hotels + honeymoon travel" to the five major destinations in the world, etc. Promotions increase user engagement and topicality. Product price reductions after the National Day also promoted the growth of off-peak travel transactions. In terms of products, the addition of Tuniu Travel has upgraded the related products of "Fruit and Fruit Family Tours" and "Honeymoon Tours", forming product differentiation while also improving user experience. In terms of user experience, the launch of Tuniu Black Card has helped Tuniu effectively build a membership ecosystem framework. At the same time, the innovative "remote dispatch" mechanism of tour guides promotes the balanced allocation of high-quality service resources and provides guarantee for the improvement of destination service quality.

While configuring products and marketing according to seasons and user needs, the upgrade and innovation of services and products ensure that Tuniu continues to maintain its leading edge in the industry. Analysys monitoring shows that in the fourth quarter of 2018, Tuniu, Ctrip, Lvmama, and Meituan-Dianping ranked among the top four with market shares of 28.63%, 23.93%, 13.41%, and 9.37% respectively, with a total share of 76.32%. , market concentration remains at a high level.

With significant advantages in service network and sales network, Tuniu achieved full-year Non-GAAP profit for the first time

Analysys analysis believes that as users’ requirements for travel experience continue to increase and traffic costs continue to Against the background of rising prices, improving the coverage and detail of high-quality services has become an important way for manufacturers to retain users.

Tuniu’s layout to improve the coverage and detail of high-quality services is more reflected in improving the service network and sales network. As of December 31, 2018, Tuniu had 509 self-operated stores, including 345 new self-operated stores since January 1, 2018. By expanding the number of stores, Tuniu has further expanded its brand exposure, and can better interact with offline consumers and improve the experience of offline customers in more cities.

In order to further tap the value of existing customers and bring new traffic, Tuniu also actively deploys social marketing. The main positions of Tuniu’s social marketing include WeChat groups, “Moske” mini program, “Tuniu Poster Tool” mini program, etc. Among them, as of now, the cumulative number of members of the WeChat group operated by Tuniu is close to 140,000. In January 2019, the transaction volume generated by Tuniu members in the group exceeded 60 million yuan.

In terms of service network construction, the financial report shows that as of December 31, 2018, Tuniu had 29 self-operated pick-up agencies, including 25 domestic pick-up agencies and 4 overseas pick-up agencies. Jieshe. In 2018, Tuniu’s domestic travel agency also innovatively launched the “remote dispatch” mechanism for tour guides, which promoted the balanced allocation of high-quality service resources and provided institutional guarantee for the improvement of destination service quality. In terms of overseas self-operated pick-up agencies, Tuniu currently has overseas pick-up agencies in Japan, Thailand, the United States, Austria and other destinations, which can provide better ground pick-up services for outbound travel customers and also provide services to the destinations. The expansion of resources provides assistance.

By continuing to improve its sales and service network, Tuniu has effectively achieved differentiated development, and at the same time promoted Tuniu to achieve a non-GAAP profit of 10.9 million yuan for the whole year since its first listing.

Yu Dunde, CEO of Tuniu Travel Network, said: "In 2018, we improved our sales and service network, opened a number of self-operated stores and local travel agencies, and provided better quality services to more customers. Products and services have also achieved a lot. In 2019, we will continue to work hard to improve product quality and optimize customer experience. Customers are our core assets, and we will use the company’s core advantages in packaged travel products to achieve differentiation. To better serve and protect all our customers.

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