Tuniu NASDAQ: TOUR reported higher first-quarter revenue and its fifth consecutive quarter of non-GAAP profitability, as management said China’s travel market continued to benefit from solid demand during the period, including support from the longest Chinese New Year holiday on record.
Founder, Chairman and Chief Executive Officer Donald Dunde Yu said on the company’s 2026 first-quarter earnings call that both domestic and outbound travel markets saw stable growth. Net revenues increased 13% year over year in the quarter, while the company remained profitable on a non-GAAP basis.
“This year, we will continue to strengthen both our supply chain capability and the sales channel development,” Yu said, adding that Tuniu plans to use its product strengths, industry insights and technology tools to expand its travel resource base, deepen partnerships and improve operating efficiency.
Revenue Rises as Package Tours Remain Core Business
Financial Controller Anqiang Chen said first-quarter net revenues were CNY 132.6 million, up 13% from the same period in 2025. Package tour revenue rose 11% year over year to CNY 109.7 million, accounting for 83% of total net revenues. Chen said the increase was primarily driven by growth in outbound tours and self-guided tours.
Other revenues increased 24% year over year to CNY 22.9 million, or 17% of total net revenues, mainly due to higher fees from advertising services provided to tourism boards and bureaus.
Gross profit was CNY 73.6 million, up 6% year over year. Operating expenses declined 4% to CNY 77.3 million. Research and product development expenses fell 7% to CNY 13.6 million, primarily due to lower personnel-related expenses. Sales and marketing expenses rose 17% to CNY 50.5 million, reflecting higher promotion expenses. General and administrative expenses declined 41% to CNY 13.5 million, which Chen attributed mainly to a property and equipment impairment recorded in the first quarter of 2025.
Net income attributable to ordinary shareholders was CNY 0.7 million. Non-GAAP net income attributable to ordinary shareholders, excluding share-based compensation expenses and amortization of acquired intangible assets, was CNY 2.6 million.
As of March 31, 2026, Tuniu had CNY 1 billion in cash and cash equivalents, restricted cash, short-term investments and long-term deposits. Capital expenditures for the quarter were CNY 0.5 million.
Company Expands Supply Chain and Product Offerings
Yu said Tuniu is expanding its supplier network in areas including car rentals, overseas hotels and destination experiences. The company also plans to integrate demand from both its own platform and partners to strengthen centralized procurement while maintaining product quality and price competitiveness.
After adding connecting flight solutions to outbound travel products last year, Tuniu is extending similar options to domestic travel products. Yu said certain Niu Tour products now provide integrated flight solutions for travelers departing from different cities across China. If a connecting flight is delayed, Tuniu said it will assist customers in completing the remaining segments of their trips at no additional cost.
Yu highlighted Niu Tour as one of the company’s core organized tour offerings, supported by a relatively loyal customer base. The company has expanded the product line into long-haul and more complex destinations, including Africa and South America. New premium outbound products include North America multi-destination itineraries covering the U.S., Canada and Mexico, as well as South America and Antarctica tours, which Yu said have been well received, including by repeat customers.
In domestic travel, Yu said demand is shifting from traditional sightseeing toward culture- and experience-oriented trips. Tuniu has responded by introducing more in-depth itineraries focused on single destinations, reducing the number of stops and providing more time for local experiences. Many of these products are offered as small group or private group tours, and some include senior tour guides for more detailed commentary.
AI and Dynamic Packaging Support Self-Guided Travel
Yu said the number of self-guided travelers continues to increase, prompting Tuniu to expand its Hotel+ offerings, with hotels as the core component. The company has strengthened direct sourcing of resort hotels and increased procurement of other travel-related products.
Tuniu is also using AI and dynamic packaging technologies to support self-guided travel bookings. Yu said customers can input relevant information and receive automatically generated destination recommendations and itineraries, then customize packages by selecting preferred components.
More broadly, Yu said Tuniu will continue exploring AI applications across business scenarios, including automation tools for repetitive operational tasks and customer-facing tools such as itinerary recommendations, standalone product booking and dynamic packaging.
Live Streaming and Offline Stores Drive Channel Growth
Tuniu said live streaming contributed more than 20% of total transaction volume in the first quarter, with both payment and verification volume posting double-digit year-over-year growth. Yu said the company has introduced more targeted products for different customer groups, including European tour products longer than 15 days for senior travelers and customized Singapore tours and private group products for family-oriented customers.
The company has also extended live streaming into destination-based scenarios, including onboard sessions from cruise ships, which Yu said helped customers better understand destinations and supported bookings and verifications.
Offline store transaction volume increased nearly 30% year over year in the first quarter. Yu said offline stores remain important for selling organized tour products and promoting the Tuniu brand. The company has opened its systems and product offerings to offline stores, enabling them to reach lower-tier markets and offer more travel products, particularly outbound tours. Tuniu plans to continue expanding its offline store network this year.
Second-Quarter Outlook and Travel Trends
For the second quarter of 2026, Tuniu expects net revenues of CNY 134.9 million to CNY 141.6 million, representing year-over-year growth of 0% to 5%. Chen said the forecast reflects the company’s current and preliminary view of the industry and operations and is subject to change.
During the question-and-answer session, private investor Cathy Lu asked about mixed second-quarter market conditions, including spring break policies and rising airfares, as well as early summer booking trends.
Yu said many cities implemented spring breaks this year, often before the Qingming or Labor Day holidays, creating longer vacation periods and stimulating travel, especially domestic air travel. He said Tuniu recorded more than 50% year-over-year growth in the number of trips from April 1 to April 6. From April 1 to April 3, the number of family tour trips tripled from the prior-year period, with natural experiences, theme parks and study tours favored by families with children.
Yu said the impact of higher airfare prices is limited for long-haul package tours because those products include multiple travel resources beyond airfare. For domestic tours, he said Tuniu offers alternatives such as connecting flights, train tickets and car rentals. However, he cited headwinds at certain outbound destinations and airfare impacts on short-haul travel and air ticketing alone as reasons the company expects second-quarter revenue growth of up to 5%.
On summer travel, Yu said visibility remains limited because booking windows are short, especially for domestic tours and short-haul outbound tours. He said cooler-weather destinations such as Guizhou and Neimenggu may be popular, while culture-oriented cities including Beijing and Datong are also expected to draw interest. For long-haul outbound tours, Yu said bookings were on track, noting that package tour bookings to America for July and August had already exceeded the same period last year.
About Tuniu NASDAQ: TOUR
Tuniu International Limited is a China-based online leisure travel company that operates a comprehensive travel services platform under the brand name Tuniu NASDAQ: TOUR. Headquartered in Nanjing, the company was founded in 2006 and was incorporated in the Cayman Islands in May 2010. Tuniu completed its initial public offering on the Nasdaq Stock Market in December 2014, positioning itself to expand its suite of digital travel offerings and strengthen its strategic partnerships with suppliers and local agencies.
The company's flagship platform, tuniu.com, provides a broad array of travel products and services, including packaged group tours, customized private tours, independent travel solutions, corporate travel management, hotel and resort bookings, air ticketing, cruise vacations and car rentals.
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