Trip.com Group Limited (NASDAQ:TCOM) Q3 2022 Earnings Call Transcript

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Jane Sun: Yes. Thank you. Our growth of the international platform actually, we see €“ as I explained before, although there are some headwinds in the macro environment actually, we €“ so far, we didn’t notice too much impact on our overseas platform, both in the European e-mail area as well as the U.S. And maybe because we are still in the very early stage of our development in the overseas market, and the comparable base is very small, but I think as long as we can continuously improve our product offering as well as very efficient sales and marketing initiatives of sales and marketing spending, we will €“ we are very confident we can continuously to achieve a healthy growth in those regions. With regard to the APAC region, because the APAC region has just started to reopen and compared with earlier, we also have a very €“ a pretty strong product offerings as well as the brand recognitions in the region.

So, in the next year, we think we have a very good opportunity to catch the pent-up demand recoveries in this region. So, overall, we are still quite optimistic on the continuously growth for our international market. Thank you.

Operator: Thank you for the questions. Our next question comes from the side of Yulin Zhong from Haitong International. Please proceed.

Yulin Zhong: Hi. Thanks management. And I was wondering if you could share more color on your company’s strategy updates, especially on content? How would you process the strategy and what your expectations in the near-term? Thank you.

Jane Sun: Sorry, I didn’t hear it clearly. Are you asking for the content strategy?

Yulin Zhong: Right. I was wondering how would you process the content strategy post the COVID lighting and what would be your expectations?

Jane Sun: Okay. Thank you. So, actually, the behaviors of our global travelers have evolved over the past 3 years from their travel preference to decision-making process. It is the goal of our content strategy to inspire and provide credible recommendations to empower travelers to discover the most unique things to do the eat and see around the world. So, in the third quarter, we continuously to improve our content generation and user engagement capabilities. In the third quarter, the number of content creators increased by 20% year-over-year, and the amount of daily average UGC content continued to grow year-over-year. For example, in September, there were 76% more contents being generated by our users when compared to the same period last year.

With regard to the user engagement, the average view duration on our content platform increased by 8% year-over-year, and the average number of content viewed per user also increased by about 24%. The conversion rates of destinations-related content increased by 14% to €“ yes, to 44% in Q3 from the first half of this year. As there is no particular form of content that will always go viral, actually instead of pursuing creation of viral content, we remain focused on providing the most suitable and relatable content that can easily be accessed by users through search and features. This is actually why we create a Trip.Best List, which have bucket list of travel topics with credibility and authenticity as we believe professional, trustworthy and easy accessible recommendations plus one-stop service model will enable Trip.com, Ctrip to build a closed-loop travel ecosystem going forward.

Thank you.

Operator: Thank you for the questions. With that, I would like to turn the call back to Michelle Qi from the company for closing remarks.

Michelle Qi: Thank you. Thanks everyone for joining us today. You can find the transcript and the webcast of today’s call on investors.trip.com. We look forward to speaking with you on the fourth quarter of 2022 earnings call. Thank you and have a good day.

Jane Sun: Thank you very much.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

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