Tuniu Corporation (NASDAQ:TOUR) Q2 2020 Earnings Conference Call - Final Transcript
Aug 28, 2020 • 08:00 am ET
Hello, and thank you for standing by for Tuniu's 2020 Second Quarter Earnings Conference Call. My name is Andrew. [Operator Instructions] After management's prepared remarks, there will be a question-and-answer session. [Operator Instructions].
I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Mary.
Thank you, Andrew. And welcome to our 2020 second quarter earnings conference call. Joining me on the call today are Donald Yu, Tuniu's Founder, Chairman and Chief Executive Officer; and Anqiang Chen, Tuniu's Financial Controller. For today's agenda, management will discuss business updates, operation highlights and financial performance for the second quarter of 2020.
Before we continue, I refer you to our safe harbor statement in 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 2020 second quarter earnings conference call. After nearly six months of downturn caused by the COVID-19 outbreak, we are encouraged to see that China's domestic travel market is finally showing signs of recovery.
On July 14, China's Ministry of Culture and Tourism announced the resumption of inter province tours and began allowing travel agencies and OTAs to resume sales of packaged tour. We have also seen local travel authorities across China launch promotions for discounted or free tickets to local attractions in order to support the recovery of the travel industry.
The release of pent-up demand has increased the flow of travelers during summer holiday season. According to our data, packaged tour GMV was up over 200% in the second half of July compared to the first half of the month. Although the control over the pandemic is getting better within China, the outbound travel market still faces challenges due to the continuous threat of the COVID-19 abroad.
Also, China still experience small scale outbreak from time-to-time and the travel industry continues to adjust in line with the anti-corona virus precautions implemented throughout the country. From improving safety measures during travel, anti-corona virus precautions limiting the number of tourists at popular attractions. And customer focuses -- focus on safety and hygiene. The bar for all travel products and services has been raised in many ways. In this new environment our focus on continues innovation is one of Tuniu's main advantages in ensuring the satisfaction of our customers.
As part of this, we have adjusted our product positioning to better meet current customer demands. We upgrade our mass-market products to mass premium products to create higher quality travel experiences through stricter product selection, higher service standards and more precede -- products -- production