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Tuniu Q2 earnings report: revenue grew 373% year on year, operating cash flow is positive

Date: 2021-08-26

On August 23, Tuniu (NASDAQ: TOUR) announced its unaudited results for the second quarter ended June 30, 2021.

Financial data show that in the second quarter of this year, Tuniu revenue continued to recover positive growth, revenue exceeded expectations, net income increased 373% year on year, 108% quarter-on-quarter growth. Among them, the revenue of packaged tourism products increased 907% year-on-year and 179% month-on-month. Gross profit increased 792% year on year and 141% quarter on quarter.

At the same time, operating cash flow in the second quarter of this year became positive again after the third quarter of 2020, with remarkable results in focusing on core business, continuously improving destination services and promoting high-quality development. The loss in the second quarter of 2021 was significantly narrower than that in 2020 and 2019, and compared to the first quarter of 2021, which was more than 90% narrower than the same period in 2020.

"This quarter saw a strong recovery in our business, with not only positive revenue growth for the first time since the outbreak, but also positive operating cash flow again. We have always been adhering to the core value of "customer first", focusing on customer needs, and continuously improving our products and services, so as to seize opportunities and achieve development in the constantly changing external environment. In the face of temporary challenges, we always put customers first and win customers' long-term support and trust with quality experience." Tuniu travel network CEO Mr. Yu Dun de said.

Steady business: high quality development helps "member day" data to innovate high customized tourism growth pole prominent role

Based on marketing activities such as "product day" and "member day" and favorable summer travel, tuniu's customized travel demand continued to rise in the second quarter, and GMV increased by 200% quarter-on-quarter. Especially at the beginning of this summer, the performance of enterprise customized tour is bright. At the same time, the demand for customized Tours and boutique groups around red tourism increased significantly, with a year-on-year increase of 116% in the second quarter.

The recovery of domestic package Tours accelerated from April to June. With the early release of demand for the May Day holiday and summer vacation, the demand for long-term travel in China grew rapidly in the second quarter, with destinations in Hainan, northwest, Xinjiang and Yunnan attracting much attention. Shanghai, Beijing, Nanjing, Guangzhou, Sanya, Chengdu, Hangzhou, Wuhan, Chongqing and Xi 'an are the most popular destination cities among users. At the same time, users also put forward higher requirements for the quality of travel. The proportion of small boutique groups, a single group, customized groups and other bookings increased significantly, and customer satisfaction was higher.

Compared with the first quarter, the "member day" data of Tuniu in the second quarter has maintained a high growth rate. On April 16, 2021, tuniu member day restarted "one year anniversary", the total sales reached 20 million, exceeding the "September 16" member day sales peak in 2020, with an increase of nearly 50% compared with "March 16"; On June 16, the total sales of "member day" reached 22 million, among which the holiday product GMV increased by 20% compared with that of "April 16"; On July 16, the first member day of tuniu's summer vacation officially began, the total sales in one day exceeded 40 million, and the holiday GMV doubled from the previous month.

Relying on supply chain, resources, channels and other advantages, tuniu provides users with a variety of products and professional services through dynamic packaging. Through the "member day" live broadcast, to innovate products and quality services, strengthen the brand effect. It boosts product sales while enhancing user connectivity.

All the way up the "member day" data from Tuniu adhere to high quality development. It is reflected in the threshold of product launch. In 2021, Tniu will raise the satisfaction standard of product launch to 90%, and users will comment on products with less than 90% satisfaction, so as to firmly grasp the lifeline of tourism product quality; In terms of destination mining, in-depth product innovation and research and development are carried out based on user needs. A series of products, such as "super weekend" and "deep city tour", are created based on users' flexible travel needs, focusing on matching customized tour, small package tour and private tour with innovative products. In addition, the "stepping stone" tourism products, which take niche products as the "commanding point" and go deep into the industrial chain, has taken the lead in completing the research and development and launch of new products in sanya, Suzhou and Hangzhou, Chengdu and other destinations.

Professional adherence: focus on the destination to direct sales of "0 bad reviews" as the service goal to continue to upgrade the full cycle of customer service guarantee

Guided by the core value of "customer first", Tuniu is committed to enhancing the supply of quality products and services throughout the customer service cycle. By the end of the second quarter, tuniu's local network has basically covered the whole country, and the average service satisfaction is as high as 97.98%. In the second quarter, the GMV of products using direct distribution increased significantly from the first quarter. What is more worth mentioning is that in the first half of this year, tuniu's 6 local contact agencies reached and maintained the "0 bad comment" high service level.

Under the background of new demand for service brought by consumption upgrade, Tuniu continues to make efforts in travel support services. The May Day holiday this year, the way cattle travel service center for the first time start the holiday special service, by the way the cow products, with the head, customer service and other business of holiday special service team, from the coordination of resources, make emergency plans before travel, to travel quickly respond to user requirements, timely and efficient to solve the problem, to continue to follow up the user experience feedback after the travel, All efforts from the whole process for the user travel escort.

After entering the summer vacation, the tourism industry is affected by many force majeure factors. In order to protect the rights and interests of consumers, Tuniu on July 20, to help users affected by the rain in Zhengzhou unsubscribe; From July 21, for booking including July 21, 22 Nanjing Lukou Airport departure ticket product users to provide non-destructive refund; From July 22, the first linkage of multi-service plate to start the high risk area users unsubscription guarantee without loss.

Since 2020, mass affected by the force majeure factors of change is relatively frequent, way of cattle to provide users with comprehensive change back and in a timely manner, to customers for the direct losses of more than 100 million yuan, for the indirect losses of more than 80 million yuan, for the supply of more than 100 million yuan end without a refund of the guest paying back now. It has gained the trust and recognition of users with high-quality guarantee services, and boosted the consumer confidence and demand of users in the recovery period of the tourism market.

Content innovation: Destination recommendation has new ideas and live broadcasting has become a normal way of display

Since 2020, Tiniu has carried out diversified and personalized live broadcast of products and themes on wechat, Douyin and other platforms, linked with natural landscape, cultural endowment, characteristic products and other resources of tourism destinations, adhered to the production of high-quality content, and innovated the way of tourism destination promotion.

Tuniu studio through the "no contract can return", "expired automatic return" and other reservation guarantee, for users to win a great deal of concessions, but also for users "peace of mind, rest assured travel" cast a solid barrier.