Tuniu's Q2 2025 Earnings Call: Navigating Contradictions in Profitability, Pricing, and Growth Strategies

Profitability timeline, impact of competitive pricing strategy on profit margins, regional revenue growth trends, revenue growth strategy and profitability, product innovation and pricing strategy are the key contradictions discussed in Tuniu's latest 2025Q2 earnings call.



Robust Revenue Growth:
- Tuniu Corporation reported net revenues of CNY 134.9 million in Q2 2025, representing a 15% year-over-year increase.
- This growth was driven by strong consumer demand during the holiday period, increased transaction volumes, and the popularity of packaged tours.

Growth in Packaged Tours:
- Revenues from packaged tours were CNY 113.4 million, up 26% year-over-year and accounting for 84% of total net revenues.
- The increase was primarily due to growth in organized and self-drive tours, supported by enhanced supply chain and product offerings.

Emerging Destinations and Sales Channels:
- Destinations like South America, Sri Lanka, and the Caucasus reported over 100% year-on-year growth, while Southeast Asia saw a decline.
- Expansion in live streaming and offline store channels contributed significantly to the growth, especially in emerging destinations.

Profitability and Operating Expenses:
- Tuniu achieved moderate profitability on both GAAP and non-GAAP bases, with non-GAAP net income of CNY 16.5 million.
- Operating expenses increased by 58% year-over-year, primarily due to research and product development, sales and marketing, and personnel expenses.

Summer Season Performance:
- During the summer peak season, Tuniu experienced significant demand growth, particularly in domestic city tours and long-haul outbound travel.
- The company expects 7% to 12% net revenue growth for Q3 2025, reflecting the market's growth momentum in the peak season.