Tuniu Corporation (NASDAQ:TOUR) Q4 2019 Earnings Conference Call - Final Transcript
Apr 09, 2020 • 08:00 am ET
Donald Dunde Yu
Chinese consumers' demand for travel continues to grow. The current restrictions on travel will further build up travel demand, in addition to the natural increases. We are positive on the long-term outlook of China's travel industry. Once COVID-19 is contained, we believe travel will be one of the fastest recovering industries. Where there is a challenge, there is opportunity. We have revised our core strategies in service, products and that impact from COVID-19 as well as to capture the potential opportunities.
I will now go over the strategies in greater detail. First, I would like to talk about service, which is the most important path during these special times. For both our customers and our partners, we displayed industry leading service capabilities. In order to guarantee our customer experience, we refunded or altered all travel products affected by COVID-19 and assisted traveling customers with returned logistics.
Following the initial outbreak, there was a surge in customer inquiries, with call volume increasing tenfold during the period. Tuniu's professional and dedicated customer service representatives worked tirelessly to reassure customers and to have modified their trips. Due to our implemented additional safety measures across the board, in order to guarantee the safety of our customers, Tuniu's tour guides were given special training on increasing healthy awareness, requiring them our accommodations, transportations and dining. Tuniu's 34 local tour operators across China all implemented additional safety precautions at the outbreak, in order to protect our customers.
In 2019, Tuniu continued implementing its S2B2C strategy. Diversifying a sales channel through B2B distribution and social marketing, we achieved strong results during this during the year, as GMV of Difeng Cloud increased over 14% year-over-year, during the fourth quarter of 2019.
Next I would like to talk about our products. Our years of relationships with other parties in the supply chain and the previous investment in the development of our own supply chain were crucial to help us minimize our losses during the outbreak. Innovative new forms of products such as Tuniu's dynamic packaging system, self-operated local tour operators and destination based tours are all more flexible than traditional products, and are more closely integrated with our systems. These products are more easily booked and altered according to the needs of customers, allowing for higher efficiency during the outbreak, when changes were frequently made.
Niu Tour and our local tour operators remain committed to their focus on quality; because Tuniu's fully control of the quality of these products, we were able to quickly adapt to these products to market conditions and [Technical Issues].
Lastly, I would like to briefly mention our systems. Our dynamic packaging system and various automation procedures, were crucial in having customers make changes during the outbreak. Between January 21st and February 2nd, our our systems made over 500,000 itinerary changes. A volume that is hard to process without the assistance of our systems.
Going forward, we will continue to remastering core systems and the processes, in order to further enhance our supply chain and