Welcome to the Trip.com Group's 2025 first-quarter earnings conference call, featuring updates from the executive chairman, CEO, and CFO on strategy, business, operating highlights, and financial performance.

In 2025, the travel industry exhibits robust growth, with Trip.com particularly excelling due to its diversified market presence and strategic focus on inbound travel. Notably, inbound travel bookings to China surged by approximately 100% year over year, fueled by visa policies and increased global visibility. The company's AI capabilities significantly enhance user experience and streamline the booking process, contributing to its strong Q1 results and positioning it for future growth opportunities.

The company reported a 16% increase in net revenue and a 7% growth in adjusted EBITDA for Q1 2025, driven by a 60% year-over-year rise in international OTA platform bookings. APAC serves as a major growth engine, with 70% of international bookings made through the mobile platform. Strategic partnerships and localized operations bolstered performance, while China emerged as a popular destination with inbound travel growing 40% year-over-year. Favorable policies, such as the 240-hour visa-free transit and VAT rebate initiatives, enhanced accessibility and attractiveness. Outbound travel from China also showed steady growth, exceeding 2019 levels by over 120%.

Despite short-term disruptions, Chinese travelers' expanding radius supports global tourism recovery, particularly benefiting long-haul destinations like Europe. Domestic demand remains strong, marked by double-digit growth in hotel bookings. The 'solar generation' emerges as a vital market force, driving long-term growth with a 100% year-over-year increase in both user numbers and GMV for the old friend club, showcasing a robust appetite for travel and exploration.

The company adapts travel products to meet the needs of senior travelers, offering over 7000 tailored products, while also curating niche experiences for younger travelers, focusing on entertainment and experiential travel, witnessing a 400% revenue increase in Q1 year over year.

The company highlights its strong Q1 performance, commitment to societal value through rural revitalization, sustainable travel initiatives, and employee welfare, showcasing resilience and growth strategies.

In Q1 2025, Trip.com Group reported a net revenue of 13.8 billion RMB, up 16% YoY, driven by robust travel consumption across segments. Accommodation reservation and transportation ticketing revenues saw significant growth, with international businesses contributing notably. Adjusted EBITDA reached 4.2 billion RMB, and the company repurchased approximately $84 million of its shares, demonstrating commitment to shareholder value.

A discussion on the differences and future development of vertical and general AI agents within the travel sector, drawing on the experience of a company that has utilized AI-powered functions.

Vertical and general AI agents contribute uniquely to the travel industry, with a focus on real-time data and integrated services. AI tools, including Tripp Genie, are crucial in providing efficient, reliable travel recommendations and bookings, with ongoing enhancements based on user feedback and technological advancements.

Domestic hotel bookings surged over 20% and cross-order bookings grew around 30% during the Labor Day holiday, with income bookings skyrocketing by 150% year-over-year. Domestic air and hotel prices showed significant improvement since the first quarter, indicating resilient leisure travel demand.

Cross-border flights from mainland China have recovered to 83-84% of 2019 levels, with forecasts predicting further growth to 90% by the end of 2025. Despite economic uncertainties and forex volatility, the platform's outbound bookings have outperformed industry averages, particularly for long-haul destinations like Europe. Inbound and outbound operations provide a natural hedge against major foreign exchange impacts.

After a high single-digit decrease in hotel ADR in Q1, prices stabilized with a low single-digit drop during the recent Labor Day holiday. Mid to upper-range hotel demand and availability saw significant growth, with expectations for stabilizing prices due to rising travel demand and normalizing supplier growth.

Despite changing preferences and geopolitical tensions, travel demand remains strong across various markets. Leisure travel spending is comparable to the previous year, while business travel demand is stable, with over 90% of corporate users expecting their travel budgets to grow or remain unchanged by 2025.

The company highlights its robust membership and loyalty programs as key differentiators in a rationalized domestic competitive landscape, emphasizing 80% of revenue comes from existing customers.

Despite challenging comparisons, the company experienced significant growth in Q1, with bookings increasing over 30% YoY. APAC remains a top priority, while the Middle East emerges as a new market for diversification. Service and personnel cost efficiency improved as marketing ROI stayed aligned with targets, despite increased marketing spend. International business, particularly Tripe.com overseas, has intensified marketing efforts, focusing on specific strategies for resource allocation and assessing effectiveness for future planning.

The company reports significant marketing success in Asia, with 70% of orders coming from the native mobile app, particularly strong in APAC. Campaigns focus on enhancing brand awareness and direct user acquisition, delivering high ROI and increasing cross-selling opportunities.

Management discusses their strategy for international expansion, emphasizing a one-stop shopping platform, excellent customer service, and strong app usage in Asia. They also address the impact of trade tensions on the travel business.

A participant in a discussion confirms the current date as May 20, 2025, and requests clarification on unspecified topics after experiencing technical difficulties.

Despite initial low single-digit group revenue, the inbound business has seen over 100% year-over-year growth. Policies in over 40 countries offering free visas and extended visa durations have facilitated easier travel, contributing to this growth. Additionally, the company's strong domestic market presence, competitive pricing, and ability to cross-sell different products have led to a three-digit growth in Q1 of 2025, with plans to maintain this momentum.

The company observed lower-than-expected sales and marketing expenses this quarter due to seasonal shifts in China. Marketing investments are adjusted in real time based on market conditions and focus on maximizing ROI, with plans to enhance global marketing investment and improve efficiency through direct mobile traffic, cross-selling, and customer loyalty.

A query regarding the $88 million share repurchase in Q1 and expectations for increased share buybacks in subsequent quarters is addressed, seeking clarity on the company's capital return program.

The company announced it has distributed 200 million in cash dividends to shareholders and bought back 80.25 million USD worth of shares, with plans to continue buybacks up to a total of 600 million approved by the board. Additional share buybacks in the Hong Kong market are proposed pending approval. The company reaffirms its commitment to capital return through both dividends and stock buybacks.