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Trip.com’s Chinese CEO reduces wages to zero as coronavirus shots travel

Sun told staff about the changeover on Monday in an internal memo provided to CNN Business by a Trip.com spokesperson.

“Starting this month, James and I will receive a zero salary and top management members will voluntarily take cuts in salaries, up to half of their salaries,” Sun wrote.

Trip.com (TCOM), who owns and operates Ctrip and Skyscanner, declined to comment on how much Sun and Liang earn. The company did not disclose their salaries in its most recent annual report, but noted that it paid all of its directors, including Sun and Liang, cash compensation totaling $ 1.7 million in 2018.

Shares on Trip.com have fallen nearly 12% so far this year.

Coronavirus, also known as Covid-19, has so far killed over 3,800 people and has affected nearly 110,000 people worldwide.

The pandemic has dealt a severe blow to the travel and tourism sector. Travel demand is plummeting as companies curb business travel, airlines cut flights to affected areas and organizers cancel important events such as South by Southwest, Mobile World Congress and the Geneva Motor Show.

SXSW is canceled due to coronavirus problems
Hotels and airlines have already begun to warn of heavy losses. The International Air Transport Association said the outbreak could cost global airlines $ 113 billion in lost revenue. The industry group says a worst case scenario could see airline passenger numbers drop by more than 20% in Europe and Asia. Hilton (HLT), Intercontinental (IHG) is Marriott (Tues.) everyone said they are likely to lose tens of millions of dollars.

In China, the travel industry also suffers from government policies. In an effort to contain the virus, domestic and outgoing group travel packages have been banned since late January.

Trip.com’s Sun told CNN Business in an interview last month that the company has seen millions of canceled orders and that success on Trip.com and the global travel industry “will be significant.”

The company will report fourth quarter earnings next week, where executives are expected to update investors on the impact of coronavirus on Trip.com’s operations.

The coronavirus has rooted Chinese tourists. The global travel industry may not recover for years

Sun was confident that the pent-up demand will help Trip.com recover after the epidemic ends.

But Tourism Economics economists have said that the industry will not fully recover until 2023 and other experts point out that some businesses will be lost forever.

Consulting firm McKinsey said in a report this month that the aviation, tourism and hospitality sectors will see a “largely unrecoverable” loss of demand.

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