Huatai Securities: Both domestic tourism and inbound tourism drive OTA prosperity.

Huatai Securities pointed out that although recent Middle East geopolitical tensions have caused fluctuations in oil prices and some international transit networks have shrunk, causing some disruption to long-haul outbound demand, the industry's overall fundamentals are still solid and demand remains robust. On the one hand, the combined effect of the "Qingming Festival + Spring Break" has fully verified the strong resilience of domestic long-haul travel demand, and this high level of activity is expected to extend to the "May Day" holiday and effectively attract some domestic customers that have shifted from long-haul outbound travel. On the other hand, with the dual catalysts of visa-free policy benefits and diversion of risk-averse source markets in the Asia-Pacific region, inbound tourism is showing high growth rates and has become an important incremental engine in the current cultural and tourism market. In summary, the domestic tourism market is stable, inbound tourism has ample room for growth, and it is recommended to continue monitoring opportunities for the OTA industry to improve its business environment in a booming supply and demand environment.