Tuniu’s net revenues in the second quarter of 2014 increased by 84.9% year-over-year to RMB716.4 million (US$115.5 million) according to its official financial results.
Tuniu is an online leisure travel company in China that offers a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform.
Total number of trips from organized tours (excluding local tours) on Tuniu increased by 98.9% YoY and total number of trips from self-guided tours increased by 104.5% YoY in Q2 2014.
Mobile traffic contributed over 35% of total online traffic and 30% of total orders in the second quarter; like other online travel companies like Qunar and Ctrip, Tuniu captured the mobile traffic and converted them well.
However, Tuniu’s net loss in the second quarter of 2014 was RMB113.6 million (US$18.3 million), compared to a net loss of RMB7.4 million in the second quarter of 2013 according to its released financial results.
In Q2 2014, Tuniu’s net profit was RMB42.7 million ($6.9 million) with an increase of 40.1% from prior year. Its net profit rate was 6.0% with a decrease from prior quarter. iResearch believed that due to Tuniu’s radical marketing pricing strategy as well as loss on product with discounted price, its net profit rate decreased in Q2 2014.
Tuniu’s total revenue in Q2 2014 was RMB120 million ($19.5 million) with an increase of 8.4% from prior year.
Mr. Donald Yu, Tuniu’s co-founder and Chief Executive Officer, said,
After our successful IPO in May, we are capitalizing on the IPO by strengthening our leading position in terms of market share and brand recognition. Despite the short-term impact of political instability in Southeast Asia and the tragic Malaysia Airline accident, we delivered a strong top line growth of 84.9% year-over-year in the second quarter. Our wide coverage of travel destinations and the professional guidance provided by our tour advisors enabled us to better serve a growing number of Chinese leisure travelers.
Tuniu’s total operating expense was RMB140 million ($22.8 million) with a great increase of 242.8%. Marketing expense accounted for 13.4% of the total operating expense with an increase of 399.9% from prior year. It is estimated that the growth rate of marketing expense is about 200% in Q3 2014 in China.
China Tourism Academy estimates total revenue generated from China’s travel industry is going to reach RMB 3.3 trillion (USD 530 billion) this year with 3.76 billion person trips.
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