Tuniu Corporation (NASDAQ:TOUR) Q4 2019 Earnings Conference Call - Final Transcript
Apr 09, 2020 • 08:00 am ET
[Operator Instructions] The first question today comes from Aline Ha, a Private Investor. Please go ahead.
Hi, management. My question is how big is the impact of the COVID-19 on both the company and our industry and also are you seeing a sense of a recovery at this moment? Thank you.
Donald Dunde Yu
Thank you. The COVID-19 initially broke out during the Chinese New Year. So it was a really tough period. As expected, the impact from the COVID-19 will bear a significant impact on our first quarter results. But going forward and looking forward, we are seeing gradual increase for products, domestic products and local products. We are seeing rising demand for domestic hotels, local traction ticketing, road trips products. We believe this is a gradual trend for the recovery for the domestic market. However, the long-haul domestic market is still currently not available. So we are mostly promoting hotels of attracting ticketing packages for local or domestic destinations. International destinations and countries is of a different story. A lot of other international countries are still battling the coronavirus. So we will closely monitor the scenario internationally and act accordingly.
In the last three to four years, we have developed a network of local tour operators operated by Tuniu throughout China. This will be key to capturing the increasing demand for rising demand for domestic tours both short-haul and for long-haul. Given that we are one of the largest or the largest tour operator networks, we have economy of scale. Our local tour operator network is very high quality. As such, we are able to work with number of travel -- other travel companies to create or high-quality packages for customers throughout China.
Also with the recovering of the domestic market, social marketing tool is one of the most important way for us to reach our customers. We have invested in the social marketing tool for the past 1.5 years. And we have developed numerous features on it. Using these tools, we are able to reach our customers and engage with them even during the outbreak of the coronavirus.
Another one of our key focuses during this period is the controlling of our expenses. During this period, because of the drop-off in the revenues, we are trying to reduce our everyday expenses, some of which includes using rotational program for our colleagues to work. Others include the lowering of the management's salaries to 40% of their previous level. So the whole company is gathering momentum to act in this very special time and we believe we could get through that. Thank you.
[Operator Instructions]. At this time, we are not showing any additional questions. We are now approaching the end of the conference call. I will now turn the call over to Tuniu's CFO, Maria Xin for any closing remarks.
Maria Yi Xin
Once again, thank you for joining us today. Please don't hesitate to contact us for further questions. Thank you for your continued support and we look forward to speaking with you in