John Choi

John Choi from Daiwa asked about the potential impact of new strategies from industry peers in the China market on Trip.com Group's business going forward.

Answer

CEO Jane Sun emphasized Trip.com Group's investment in technology and AI to improve industry efficiency, offering one-stop total solutions including flights, hotels, transfers, and attractions. She highlighted their robust customer service, which provides rapid assistance during travel disruptions, fostering consumer confidence and peace of mind. She reiterated the commitment to continuously improving product, technology, and service to maintain customer trust and drive growth.

John Choi asked about the potential impact of new strategies from industry peers in the China market on Trip.com Group's business going forward.

Answer

Jane Sun, Chief Executive Officer, stated that Trip.com Group invests heavily in technology and AI to improve industry efficiency. She highlighted the company's competitive advantages, including one-stop total solutions, a trusted list for destinations, and exceptional customer service that provides peace of mind, such as reaching out to customers within two minutes during travel disruptions, ensuring continued growth through product, technology, and service excellence.

John Choi of Daiwa Capital Markets asked how aggressive marketing by global competitors in certain markets would impact Trip.com's business and its marketing spending plans.

Answer

CEO Jane Sun acknowledged that the APAC market's vast potential attracts many players but emphasized that its large size allows multiple companies to grow. She stated that Trip.com leverages its one-stop offerings, competitive pricing, mobile-first strategy, and excellent customer service to maintain strong growth. The company will continue with targeted, localized marketing to expand its presence.

John Choi of Daiwa noted that sales and marketing expenses were lower than expected and asked for the full-year outlook on this line item.

Answer

CEO Jane Sun explained the sequential decrease was due to seasonal shifts in China. She reiterated that marketing investments are ROI-focused and adjusted in real-time. While short-term fluctuations can occur due to market mix, the long-term goal is to improve efficiency through increased direct mobile traffic, enhanced cross-selling, and stronger customer loyalty.

John Choi asked about the investment requirements for driving off-Shopee growth in the Money segment and the potential impact on EBITDA margins. He also inquired about the company's AI investments, how AI is being deployed, and its current and future impact on business efficiency.

Answer

Executive Hou Tianyu explained that off-Shopee growth, such as cash loans, is highly profitable and does not require significant upfront investment that would negatively impact margins. The strategy relies on cross-selling to the existing user base, which minimizes marketing costs and risk. Regarding AI, he detailed its deployment in enhancing search, recommendations, and ad efficiency, as well as enabling sellers to generate content. He emphasized that all AI investments are measured for clear ROI and have yielded positive returns, with further applications being explored prudently.

John Choi asked for the percentage of orders handled by SPX Express in Asia and Brazil, the drivers for logistics cost reduction, and details on live streaming unit economics and merchant feedback on take rate increases.

Answer

Forrest Li, Chairman and CEO, reported that SPX handles over 50% of orders in Asia and over 70% in Brazil. He detailed that cost reductions stem from end-to-end efficiencies, including sorting automation and last-mile innovations. Regarding live streaming, he noted that unit economics have improved meaningfully and that take rate adjustments are balanced with delivering value to sellers.