Tuniu's Q1 2025 Earnings Call: Navigating Contradictions in Profitability, Pricing, and Margins

Efforts to achieve profitability, product pricing strategy and impact on profits, profitability strategy and financial projections, gross margin and revenue growth, profitability and cost control are the key contradictions discussed in Tuniu Corporation's latest 2025Q1 earnings call.



Revenue Growth in Packaged Tours and Outbound Tours:
- Tuniu's revenues from packaged tours grew by 19% year-over-year in the first quarter of 2025.
- This growth was driven by increased domestic travel during the Spring Festival and the diversity of Tuniu's products and destinations, which allowed customers to choose between domestic and international options.

Customer Engagement through Live Streaming:
- Live streaming contributed over 15% of Tuniu's total transaction volume in the first quarter of 2025, increasing from 10% in the previous year.
- The growth in live streaming is the result of expanding product offerings and strategic partnerships with travel influencers, which help effectively reach and engage niche customers.

Offline Store Expansion and Localized Procurement:
- As of the end of the first quarter, Tuniu had opened nearly 300 offline stores, primarily in high-demand source markets and popular tourist destinations.
- The expansion of offline stores supports localized procurement efforts, enhances customer engagement, and contributes to the coordinated development of local tourism industries.

Technology Integration and AI Agent Launch:
- Tuniu launched its self-developed travel AI agent, AI assistant Xiao Niu, in early April 2025.
- The integration of vertical travel application scenarios and open-source large language models addresses key customer pain points, enhancing customer experience and operational efficiency.