Tuniu Corporation (NASDAQ:TOUR) Q4 2019 Earnings Conference Call - Final Transcript
Apr 09, 2020 • 08:00 am ET
Hello and thank you for standing by for Tuniu's 2019 Fourth Quarter and Full Year Earnings Conference Call. [Operator Instructions].
I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Mary Chen.
Thank you and welcome to our 2019 fourth quarter and full year earnings conference call. Joining me on the call today are Donald Yu, Tuniu's Founder, Chairman and Chief Executive Officer; and Maria Xin, Chief Financial Officer. For today's agenda, management will discuss business updates, operation highlights and financial performance for the fourth quarter and fiscal year 2019.
Before we continue, I refer you to our Safe Harbor statement in the earnings press release, which applies to this call as we will make forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB.
I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Donald Yu.
Donald Dunde Yu
Thank you, Mary. Good day everyone. Welcome to our 2019 fourth quarter and full year earnings conference call. Looking back to 2019, it was earmarked by external events that negatively impacted a number of short-haul destinations, such as Hong Kong, and long haul destinations, such as the United States. The decline in these destinations, counteracted growth in destinations such as Australia, and New Zealand, resulting in a fast year-over-year growth in net revenues in 2019.
At the start of 2020, we were seeing strong growth across most destinations. From the beginning of 2020 to the beginning of the Chinese New Year, Tuniu achieved 20% growth year-over-year, in terms of overall GMV, and 40% growth in terms of packaged tour GMV. Despite a strong start to 2020, the outbreak of the COVID-19 during Chinese New Year has been significantly impacting our business.
I will first give a brief update on the status of the company, following the outbreak of COVID19. As most people are aware, the 2020 Chinese New Year has been a challenging period for the travel industry and Tuniu. Consumer industries across China have taken a major hit, following the social distancing restrictions that were placed, in order to reduce the spread of the virus. The leisure travel industry took the hardest hit of them. As travel restrictions were implemented across China to contain the spread.
In early 2020, China's travel industries regulator prohibited the sale of various packaged tour products. Tuniu terminated the selling of most packaged tour products and refunded or altered previously produced packages with travel days following the outbreak. Given the rapidly changing development, we will continue to closely monitor the situation and adapt accordingly.
From a historical perspective, outbreaks that are met with fast and attractive consumers, only result in a temporary shock to the industry. Despite the short-term restrictions, we believe