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Earnings call · Jun 2026 (Q2 FY26)

Tuniu Q2 FY26 earnings call TOUR

Aug 25, 2026 Source

Executive summary

Tuniu Q2 FY26 — Non-GAAP Profitability Maintained Amidst Outbound Travel Headwinds

Tuniu delivered modest revenue growth and sustained non-GAAP profitability for the sixth consecutive quarter in Q2 FY26, navigating a challenging outbound travel market. The company focused on diversifying product offerings, expanding sales channels, and leveraging AI for efficiency, while acknowledging ongoing uncertainties in the second half of the year. Management expressed confidence in the resilience of travel demand and their business model.

Highlights

5

  • Maintained revenue growth of 3% year-over-year, reaching CNY 138.9 million.

  • Achieved non-GAAP profitability for the sixth consecutive quarter, with non-GAAP net income of CNY 2.2 million.

  • Packaged tours revenue increased by 7% year-over-year to CNY 121.1 million.

  • Live streaming and offline store transaction volumes both recorded double-digit year-over-year growth.

  • Premium private tour package to Singapore generated sales exceeding CNY 10 million to date.

Concerns

5

  • Gross profit decreased by 11% year-over-year to CNY 76.4 million.

  • Other revenues declined by 17% year-over-year to CNY 17.8 million, primarily due to reduced advertising fees.

  • Sales and marketing expenses increased by 22% year-over-year to CNY 54.7 million.

  • Outbound travel market faced headwinds, with Middle East and Africa transaction volume decreasing over 20% year-over-year.

  • Outbound tours accounted for a smaller share of total GMV (30% in Q2 FY26 vs. over 1/3 in Q2 FY25).

Guidance & targets

CategoryTargetConfidence
Net revenues
CNY 202.1 million to CNY 212.2 million
high materiality
Medium
Net revenues growth
0% to 5% increase year-over-year
high materiality
Medium
Non-GAAP profitability
Achieve profitability for another quarter
high materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
Packaged tours
Accounted for 87% of total net revenues, primarily driven by growth in organized tours.
CNY 121.1 million7%——
Other revenues
Accounted for 13% of total net revenues, primarily due to a decrease in fees for advertising services provided to tourism boards and bureaus.
CNY 17.8 million-17%——
Outbound travel (GMV)
Outbound tours' contribution to total GMV decreased due to headwinds in certain destinations. Middle East and Africa transaction volume decreased over 20% year-over-year.
Share of total GMV: 30% (Q2 FY26)Share of total GMV (prior year): >1/3 (Q2 FY25)
————

Orderbook & backlog

Bookings for long-haul outbound destinations (Americas and Oceania) surpassed same period last year as of August 25, 2026

For the week connecting Mid-Autumn Festival and National Day holidays (last week of September).

Bookings in the last week of September surging as of August 25, 2026

Driven by people planning longer vacations connecting the Mid-Autumn Festival and National Day holidays.

Product announcements

ProductTypeDetails
Small group tours, private tours, customized tours, self-driving toursexpansion
Hotel-centric self-guided tour products and other travel-related productsexpansion
Premium private tour productslaunch
Travel AI agent, AI assistant Xiao Niuupdate

Deals & partnerships

MCN agencies Deepened cooperation for live streaming sales channels

Leveraging Tuniu's product portfolio and fulfillment capabilities with MCN partners' viewer reach.

Well-known enterprises Provided customized travel solutions for corporate clients

Planned and delivered corporate travel tours, including team building activities and incentive travel, leveraging industry experience and high-quality products/services.

Risks & headwinds

Outbound travel market uncertainties and headwinds Q2 FY26 and H2 FY26

Middle East and Africa recorded over 20% year-over-year decrease of transaction volume during Q2 FY26. Outbound tours accounted for about 30% of total GMV for Q2 FY26, compared to over 1/3 in Q2 FY25.

Mitigation:Diversified product offerings, targeted marketing, expansion of sales channels, focus on domestic travel growth.

Decrease in other revenues Q2 FY26

Down 17% year-over-year to CNY 17.8 million.

Mitigation:Primarily due to decrease in fees for advertising services provided to tourism boards and bureaus, implying a reliance on external promotional activities that were suspended.

Profitability impact from self-guided tour products Ongoing

Self-guided tour products (e.g., Hotel + X) are usually less profitable than organized tours.

Mitigation:While growing rapidly, the shift towards these products could pressure overall margins. Management is focusing on high-quality organized tours as well.

Increased sales and marketing expenses Q2 FY26

Up 22% year-over-year to CNY 54.7 million.

Mitigation:Primarily due to increased promotion expenses, indicating higher costs to drive sales in a competitive environment.

What to watch in Q3 FY26

Q3 FY26 Net Revenue Growth

Q3 FY26
Current 3% YoY (Q2 FY26)
Target 0% to 5% YoY increase

Why it matters

Verifying if Tuniu meets its revenue guidance for the next quarter will indicate its ability to navigate market uncertainties and sustain growth.

For the third quarter of 2026, the company expects to generate CNY 202.1 million to CNY 212.2 million of net revenues, which represents a 0% to 5% increase year-over-year.

Q&A highlights

What caused the decrease in net profit in Q2, and what are the details on summer travel bookings and profitability outlook?

The decrease in net profit was attributed to headwinds in the outbound travel market, particularly a >20% YoY decrease in transaction volume for Middle East and Africa, and a 17% YoY decline in other revenues due to suspended promotional activities. The domestic market saw growth in less profitable self-guided tours. For summer, domestic travel maintained steady growth, with strong bookings for long-haul outbound destinations for upcoming holidays, despite continued uncertainties in the overall outbound market. Management aims for profitability in Q3 but did not give a specific profit outlook.

“In the second quarter, the domestic travel market continued to grow steadily, whereas the outbound travel market met some headwinds at certain destinations. The headwinds directly impacted leisure travel to certain destinations. For example, the Middle East and Africa recorded over 20% year-over-year decrease of transaction volume during the quarter.”

asked by Sarah Zhao · answered by Dunde Yu

2 min read 5 chapters

Detailed narrative

Product Diversification and Personalization

Tuniu expanded its product portfolio to cater to evolving customer preferences, including small group tours, private tours, customized tours, and self-driving tours. The company also broadened its hotel-centric self-guided tour products and other travel-related offerings like car rentals and destination experiences. New premium private tour products were introduced, featuring upgraded accommodations and services, with one Singapore package generating over CNY 10 million in sales.

Targeted Marketing and Sales Channel Expansion

The company adopted more targeted marketing initiatives, such as online seminars and dedicated live streaming shows focused on specific products and destinations, which delivered higher redemption rates. Tuniu also expanded partnerships across sales channels, deepening cooperation with MCN agencies for live streaming and leveraging its network of approximately 500 offline stores, both contributing to double-digit year-over-year transaction volume growth.

Corporate Travel and AI Integration

Demand for customized travel solutions from corporate clients increased, leading Tuniu to plan and deliver corporate travel tours for well-known enterprises. From a technology perspective, AI was integrated into various workflows, including knowledge bases, promotional material creation, and order processing, enhancing employee efficiency and reducing operating costs. The AI assistant Xiao Niu was upgraded with integrated booking and order processing capabilities for stand-alone travel products.

Market Dynamics and Summer Travel Outlook

The domestic travel market maintained steady growth in Q2 FY26, supported by favorable policies, while the outbound market faced headwinds in certain destinations like the Middle East and Africa. For the summer vacation, the domestic market continued its growth momentum, with high-quality organized tours being popular. Bookings for long-haul outbound destinations for the upcoming Mid-Autumn Festival and National Day holidays have already surpassed last year's levels, indicating a more evenly spread transaction volume due to off-peak travel trends.

Financial Performance Overview

Tuniu reported net revenues of CNY 138.9 million, a 3% YoY increase, driven by a 7% rise in packaged tours revenue to CNY 121.1 million. However, gross profit declined 11% to CNY 76.4 million, and other revenues decreased 17% to CNY 17.8 million. Operating expenses increased 5% to CNY 82.5 million, primarily due to a 22% increase in sales and marketing expenses, while R&D and G&A expenses saw decreases. The company achieved non-GAAP net income of CNY 2.2 million.

AI-generated summary of the company's earnings call. Not investment advice.