Li Don Yu's questions to Tuniu (TOUR) leadership • Q1 2025
Question
The analyst inquired about Tuniu's product strategy, specifically the rationale and implementation of offering more competitively priced products, its impact on revenue and profits, and the profitability outlook for the second quarter.
Answer
Donald Yu stated that while quality is a priority, offering competitively priced products is a strategy to attract new customers, those from lower-tier cities, and to enhance repurchase rates in a competitive market. This is achieved by consolidating the supply chain to lower procurement costs and using AI for dynamic pricing. This strategy boosts transaction volume (GMV) but will result in a lower gross profit ratio for the year. The company aims to control internal costs and achieve profitability in the second quarter.