Sam Boughedda

Alex Poon from Morgan Stanley noted an improvement in traveler numbers in China after the Dragon Boat holiday.

Poon sent a note to his clients stating that domestic tourist fell 11% YoY (or 87% of 2019’s) between June 3 and 5, which is better than Qingming or Labor holiday with many cities like Shanghai and Beijing, which allow for more relaxed lockdown restrictions.

It was announced that Beijing will allow indoor dining and further ease restrictions under Covid-19. At the beginning of June, Shanghai started to ease restrictions.

Analysts stated that the numbers were comparable to those of the Mid-Autumn Festival 2021.

Poon stated that the AlphaWise survey of travel intention between May 25-29 suggested that there was a rise in travel intentions, and that consumers were less worried about potential health hazards.

Trip.com (NASDAQ.) was cited by the analyst as a stock “that could rebound more strongly QoQ” in 3Q22 because of 2Q’s low base and lockdowns within tier-1 areas.

Given the drop in volumes and price, we have reduced our 2Q revenue estimates from -56% to -34% YoY.

Trip.com shares rose more than 5% Monday