Trip.com Gains 14% As Travel Industry Recovers

Shares of Trip.com Group Limited (TCOM) are gaining nearly 14% on Tuesday morning after the company reported its first quarter results, as the travel company witnessed strong recovery in travel and tourism, especially across Europe and the Asia Pacific as travel restrictions were eased.

TCOM is currently trading at $28.00, down $3.43 or 13.98%, on the Nasdaq. The stock opened its trading at $24.99 after closing Monday's trading at $24.57. The stock has traded between $14.29 and $36.23.

Revenues for the first quarter remained stable year-over-year and decreased by 12% quarter-over-quarter, mainly due to the impact from the latest wave of COVID-19 resurgence in China.

Staycation travel continued to serve as a major contributor to the recovery of the Chinese domestic market, with local hotel bookings increased by over 20% year-over-year.

Air-ticket bookings on global platforms increased by over 270% year-over-year, mainly driven by the recovery of European and Asian Pacific markets. Hotel bookings on our global platforms also outgrew the pre-pandemic level.

Further, China reportedly loosened its quarantine rules for travelers in the country. Travelers to China will now be isolated for seven days in a centralized location before being further monitored for a further three days at home. Previously, visitors had to isolate for two weeks in a centralized location before another week of quarantine at home.

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