Tuniu encountered middle age crisis in the third quarter and still failed to climb out of the loss mire

category:Finance
 Tuniu encountered middle age crisis in the third quarter and still failed to climb out of the loss mire


Income plummeted

From the perspective of income composition, the income of tuniu is mainly composed of two parts: package tourism and other income. During the reporting period, the income of package tourism products of tuniu was 86.413 million yuan, a year-on-year decrease of 88.43% and a month on month increase of 587.84%. The decline is mainly due to the impact of the epidemic situation, the income of outbound tourism destinations decreased.

In the third quarter, other income of tuniu was 37.132 million yuan, a year-on-year decrease of 64.77% and a month on month increase of 73.02%. The decline in revenue in this sector was also due to the decline in insurance and financial services revenue due to the impact of the epidemic.

On the other hand, Touniu adopted high throttling mode during the reporting period. The companys expenses were 127.8 million yuan, down 70.8% year on year. Among them, research and product development expenses were 16 million yuan, a year-on-year decrease of 75.1%; sales and marketing expenses were 49.9 million yuan, with a year-on-year decrease of 79.2%; and management expenses were 69.8 million yuan, a year-on-year decrease of 49.6%.

Reducing expenses is the most effective way to reduce losses. An industry analyst told reporters: whether in terms of income or loss amount, tuniu showed a positive month on month growth in the third quarter. The report period covers the national day and Mid Autumn Festival holidays. The domestic people are enthusiastic about tourism, and the tourism industry is indeed showing signs of recovery.

According to the data center of the Ministry of culture and tourism, during the 11 eight day holiday, a total of 637 million domestic tourists were received, with a year-on-year recovery of 79% according to the comparable caliber; and the domestic tourism revenue reached 466.56 billion yuan, with a year-on-year recovery of 69.9% according to the comparable caliber. The enthusiasm of the domestic people for tourism is also reflected in tuniu Gmv (total transaction volume). What is more prominent is that the Gmv of customized tours increased by more than 800% month on month in the third quarter.

As of September 30, 2020, the company has cash and cash equivalents, restricted cash and short-term investment of 1.6 billion yuan. Tuniu said the outbreak had had a negative impact on the companys business operations and cash abortion in the third quarter, which may continue, but the company has enough cash and cash equivalents to meet the working capital and capital expenditure required for normal business in the coming year.

Tuniu forecasts that the net income in the fourth quarter of 2020 will be between 112.8 million yuan and 135.4 million yuan, a decrease of 70% - 75% compared with the same period last year.

Change is imminent

According to the data of Analysys, in 2019, Chinas online tourism transaction scale broke through trillion yuan for the first time, reaching 1086.65 billion yuan, with a year-on-year growth of 11.4%, and the growth rate rebounded. The online tourism industry has formed a pattern of competition among Ctrip, Ali and xinmeida (meituan).

Although it is an early platform in Ctrip, due to the lack of core competitiveness, tuniu is currently at the bottom of the industry. The analysts told the Securities Daily that tunius business strategy is too conservative and outdated, and has fallen behind in the rapidly changing Internet market.

Zhang Yi also believes that although the domestic tourism industry is recovering, the prospect of tuniu is not optimistic. The reshuffle of tourism industry is still continuing, and the demand for product innovation of new generation users has undergone fundamental changes. The Post-70s and post-80s are accustomed to using old OTA platforms, while the post-95s prefer emerging platforms such as meituan. New products are replacing the old OTA platforms. From the data of the past few years, the epidemic is only one of the reasons for the decline of tunius performance, but not the root cause.

AI media consulting data shows that in 2019, the top three scenic spot ticket booking platforms accounted for nearly 90% of the total ticket volume, of which meituan occupies the head position with its strong ticket sales ability. In addition to the display function of the platform for scenic spots, it can be seen that users pay more attention to the quality of customer service and after-sales when choosing online tickets and platforms, which is also an important reason for the platform to improve the user experience in the scenic area ticket business.

AI media consulting analysts believe that with the rise of food, accommodation, travel, shopping and entertainment tourism consumption, tourists will prefer to use mobile phones to obtain one-stop service out of the pursuit of convenience.

Now many young people, Im afraid, have never heard of tuniu. Tuniu should make some changes, Zhang said

Source: Securities daily.com Author: Xie Ruolin, editor in charge: Wang Xiaowu_ NF