Trip.com’s shares surge after strong results and amid expectations the end of zero-Covid in China will spark travel boom

The share surge came as Trip.com reported better-than-expected net income of 245 million yuan for the third quarter

Beijing’s plan to shift from its zero-Covid strategy to living with the coronavirus is expected to unleash pent-up demand for travel

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Beijing’s plan to shift from its zero-Covid strategy to living with the coronavirus is expected to unleash pent-up demand for travel. Photo: Kyodo

Published: 8:24pm, 15 Dec 2022Updated: 8:52pm, 15 Dec 2022

China’s largest online travel agency Trip.com saw its shares jump 9.2 per cent in Hong Kong on Thursday, with investors expecting a travel boom now that the country has moved to end its zero-Covid policy.

The share surge came as Trip.com reported better-than-expected net income of 245 million yuan (US$35.16 million) for the third quarter ending September 30, compared to a net loss of 868 million yuan for the same period a year ago. Revenue increased 29 per cent year on year to 6.9 billion yuan. Net income jumped 470 per cent over the previous quarter.

James Liang, Trip.com’s executive chairman, said in a statement that more border reopenings in the Asia-Pacific region are expected in 2023. “We are excited about the long-term outlook of the global travel industry and the opportunities that lie ahead,” he said.

Accommodation reservation revenue in the third quarter was valued at 2.9 billion yuan, up 114 per cent from the previous three months, because the domestic travel market started to rebound, Trip.com said.

Transport ticketing revenue jumped 49 per cent quarter on quarter to 2.6 billion yuan.