Against the backdrop of a strong recovery in China's tourism industry, TONGCHENGTRAVEL achieved significant growth in 2024, with total revenue reaching RMB 17.341 billion, a substantial year-on-year increase of 45.8%, setting a new historical high, and offline vacation business becoming a new growth engine.
On Thursday, TONGCHENGTRAVEL released its annual financial report for 2024. From the performance in the fourth quarter:
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<ul>
<li>Total Revenue: TONGCHENGTRAVEL achieved revenue of RMB 4.238 billion, a year-on-year increase of 34.8%, mainly driven by accommodation booking services (up 28.6%) and transportation ticketing services (up 17.0%).</li>
<li>Net Profit: Adjusted EBITDA was RMB 998 million, a year-on-year increase of 39.4%, with the adjusted EBITDA margin rising from 22.8% to 23.5%. Adjusted net profit was RMB 660 million, a year-on-year increase of 36.8%, with the adjusted net profit margin rising from 15.3% to 15.6%.</li>
</ul>
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Looking at the full-year performance:
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<ul>
<li>Strong Financial Performance: Total revenue for the fiscal year 2024 reached RMB 17.341 billion, a year-on-year increase of 45.8%; adjusted net profit was RMB 2.785 billion, a year-on-year increase of 26.7%;</li>
<li>Profitability: Adjusted EBITDA for the fiscal year 2024 was RMB 4.050 billion, a year-on-year increase of 29.7%; adjusted net profit was RMB 2.785 billion, a year-on-year increase of 26.7%. The adjusted EBITDA margin and adjusted net profit margin were 23.4% and 16.1%, respectively, slightly down from 26.3% and 18.5% in 2023.</li>
<li>User Data Continues to Grow: The number of annual paying users increased by 1.5% year-on-year to 238 million, with the total number of service users over twelve months rising by 9.3% to 1.928 billion, and the average monthly paying users increasing by 4.4% year-on-year to 43.1 million.</li>
<li>Business Structure Optimization: Revenue from the core online travel platform reached RMB 14.199 billion, a year-on-year increase of 22.1%; accommodation booking and transportation ticketing businesses grew by 19.7% and 19.9%, respectively; the newly added vacation business contributed RMB 3.141 billion in revenue.</li>
<li>Accelerated International Strategy: International flight ticketing volume increased by over 130% year-on-year, international accommodation business sales nights increased by over 110%, and outbound tourism business achieved significant development.</li>
</ul>
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<h2>Core Platform Steady Growth, Vacation Business Becomes New Growth Point</h2>
The strong growth in performance is mainly attributed to the robust performance of the core online travel platform business and the significant contribution of the newly added vacation business.
The core online travel platform remains the main source of revenue for TONGCHENGTRAVEL. In the fiscal year 2024, this segment's revenue reached RMB 14.199 billion, a year-on-year increase of 22.1%. Among them, accommodation booking revenue reached RMB 4.668 billion, a year-on-year increase of 19.7%; transportation ticketing revenue was RMB 7.229 billion, a year-on-year increase of 19.9%; other business revenue was RMB 2.302 billion, a year-on-year increase of 35.5%
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/928d3197-39d2-4485-a76f-380d55b0af2c.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/928d3197-39d2-4485-a76f-380d55b0af2c.png"/>
The vacation business has become a new growth engine for the company. After completing the acquisition at the end of 2023, this business contributed 3.141 billion yuan in revenue for the fiscal year 2024, significantly driving overall revenue growth. The vacation business mainly includes offline travel agency-related services and operating scenic spots, further expanding TONGCHENGTRAVEL's layout in the tourism supply chain.
<h2>User base continues to expand, penetration rate in lower-tier cities increases</h2>
In terms of users, TONGCHENGTRAVEL continues to expand its user base. The average monthly paying users in 2024 increased by 4.4% year-on-year to 43.1 million, with annual paying users reaching 238.3 million, setting a new historical high. The cumulative number of service users over twelve months increased by 9.3% to 1.928 billion, reflecting a continuous increase in user purchase frequency.
It is worth mentioning that the company continues to deepen its focus on the Chinese mass market, with registered users living in non-first-tier cities accounting for over 87% of the total. In the fourth quarter of 2024, about 70% of new paying users on the WeChat platform came from non-first-tier cities, demonstrating its competitive advantage in the sinking market.
<h2>International business achieves breakthrough growth</h2>
In 2024, TONGCHENGTRAVEL's outbound tourism business made significant progress. The volume of international air ticketing business increased by over 130% year-on-year, far exceeding the overall industry growth rate; international accommodation business sales nights increased by over 110% year-on-year. These achievements are attributed to the company's establishment of closer cooperative relationships with travel service providers, actively enriching international products and services, and adopting flexible marketing strategies.
Strategic outlook: The company will continue to expand its core platform business, prioritize the expansion of outbound business, strengthen hotel management and vacation business, while seeking strategic investment opportunities.
<h2>Technology drives business development, AI applications enhance efficiency</h2>
As a technology-driven company, TONGCHENGTRAVEL strategically integrated emerging technologies in 2024 to improve operational efficiency and optimize user experience. The company deployed an AI-driven customer service system to streamline workflows and equipped employees with generative AI tools like DeepSeek to enhance productivity.
At the same time, the company independently developed a generative AI system focused on tourism called &#34;Chengxin,&#34; which helps users create personalized travel itineraries and compare accommodation options. This system has been integrated into multiple external generative AI platforms and mobile devices, expanding user reach

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In 2024, TONGCHENGTRAVEL's total revenue reached 17.341 billion yuan, a significant year-on-year increase of 45.8%. Among them, the vacation business has become a new growth engine for the company, contributing 3.141 billion yuan in revenue during the 2024 fiscal year, significantly driving overall revenue growth

- Tongcheng Travel reported significant growth in 2024, with total revenue reaching 17.34 billion yuan, a 45.8% increase year-on-year, driven by a strong recovery in China's tourism sector.  
- The company’s core online travel platform generated 14.199 billion yuan, up 22.1%, while the newly acquired vacation business contributed 3.141 billion yuan to overall revenue.  
- International ticketing and accommodation services saw over 130% and 110% growth, respectively, reflecting successful strategic partnerships and enhanced marketing efforts.

TONGCHENGTRAVEL Q4 revenue increased by 34.8% year-on-year, with vacation business becoming a new growth point | Financial Report Insights