Citi Maintains Buy Ratings on Tongcheng Travel and Trip.com Group, Citing Steady Rise in Holiday Travel Demand

Stock News
6 hours ago

Citi has released a research report stating that during the first three days of this year's extended National Day holiday, nationwide passenger volume was roughly flat year-on-year. The relatively weak performance in the first few days was not unexpected, as some travel demand had already been released ahead of the holiday period. The bank maintains its "Buy" ratings on TONGCHENGTRAVEL (00780) and Trip.com Group Limited (TCOM.US), with target prices of HK$22 and US$61 respectively.

According to preliminary data cited from online travel platforms, the combined Mid-Autumn Festival and National Day holiday reshaped travel patterns, with approximately ten percent of travelers extending their vacations, reflecting a steady increase in overall double-holiday travel demand. Cross-provincial tours accounted for roughly 82% of total trips during the National Day Golden Week, indicating longer travel distances and a stronger preference for extended itineraries.

Data from TONGCHENGTRAVEL shows that many travelers began their first leg of the journey during the Mid-Autumn Festival and embarked on a second leg around the start of the National Day holiday. Hotel bookings at popular destinations during the first three days of the holiday recorded double-digit year-on-year growth.

Fliggy reported that domestic attraction ticket bookings on October 1 rose nearly 30% year-on-year, while overseas airport transfer and local activity bookings increased 43% and 37% year-on-year respectively.

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