Release Date: June 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tuniu Corp (TOUR, Financial) reported a 19% year-over-year increase in revenues from package tours, indicating strong growth in their core business.
- The company achieved double-digit year-on-year growth in outbound tour transaction volume, showcasing successful international market penetration.
- Tuniu Corp (TOUR) has effectively leveraged AI technologies to enhance customer experience and operational efficiency, particularly with the launch of their travel AI agent.
- The company expanded its live streaming channels, which contributed to over 15% of the total transaction volume, up from 10% the previous year.
- Tuniu Corp (TOUR) opened nearly 300 offline stores, enhancing their market presence and supporting localized procurement efforts.
Negative Points
- Net revenues increased by only 9% year over year, which may indicate slower overall growth compared to specific segments.
- The company reported a net loss attributable to ordinary shareholders of $4.7 million in the first quarter of 2025.
- Operating expenses increased by 15% year over year, which could impact profitability if not managed effectively.
- Gross profit ratio is expected to be lower this year compared to the previous year due to competitive pricing strategies.
- Other revenues decreased by 26% year over year, primarily due to a decline in commission fees from other travel-related products.
Q & A Highlights
Q: Can you elaborate on your product strategy and how offering more competitively priced products in the first quarter impacted your revenues and profits? Also, what is the outlook for the second quarter in terms of profitability?
A: Donald Wu, CEO: Our strategy prioritizes high-quality products to build a loyal customer base. We offer a diverse price range to attract different customer groups, including those from lower-tier cities. Competitive pricing enhances repurchase rates and allows customers to plan more trips within the same budget. This year, market competition is intense, so we provide competitively priced products to consolidate our market share. We achieve this by consolidating the supply chain and using AI technology for pricing. Our new select products, an affordable line, saw an 80% increase in transaction volume compared to the previous quarter. While our gross profit ratio may be lower this year, we aim to control internal costs and achieve profitability in the second quarter.
Q: How does Tuniu plan to leverage AI technology to enhance customer experience and operational efficiency?
A: Donald Wu, CEO: We have launched a self-developed travel AI agent, Xiang Liu, which integrates vertical travel application scenarios with open-source large language models. This AI assistant provides smart search, automated price comparison, personalized recommendations, and dynamic packaging. It allows customers to book directly, ensuring a transparent and efficient booking experience. During the Labor Day holiday, we saw increased user engagement with our AI assistant, particularly for flights, train tickets, and hotel bookings. We aim to make customized travel more convenient and accessible through AI.
Q: What are the key growth areas for Tuniu in terms of sales channels and product offerings?
A: Donald Wu, CEO: We are expanding our sales channels, including live streaming, offline stores, and corporate clients. Our live streaming channels saw double-digit year-over-year growth, contributing over 15% to the company's total transaction volume. We also expanded our live streaming product offerings to include personalized services. Offline, we have nearly 300 stores, primarily in high-demand markets, which help integrate online and offline services. For corporate clients, we offer customized group tours and individual vacation packages. Our new select products, offering good value for money, have expanded to cover a broader array of international destinations.
Q: Can you provide more details on the financial performance for the first quarter of 2025?
A: An Tiang Shen, Financial Controller: Net revenues were 117.5 million RMB, a 9% increase year-over-year. Revenues from package tours rose 19% to 99 million RMB, accounting for 84% of total net revenues. Other revenues decreased by 26% to 18.5 million RMB. Gross profit was 69.3 million RMB, down 15% year-over-year, while operating expenses increased by 15% to 80.1 million RMB. The net loss attributable to ordinary shareholders was 4.7 million RMB. For the second quarter, we expect revenues between 131 million and 136.8 million RMB, representing a 12% to 17% increase year-over-year.
Q: How is Tuniu addressing the challenges in the outbound travel market, particularly in Southeast Asia?
A: Donald Wu, CEO: Despite headwinds in some Southeast Asian destinations, long-haul destinations continue to perform well. We offer a diverse range of products, allowing customers to choose between domestic and nearby international options. This flexibility has led to double-digit year-on-year growth in outbound transaction volume. We are also leveraging our supply chain advantages to reduce procurement costs and offer competitively priced products, attracting a broader customer base.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
