China's largest online travel platform Trip.com has experienced significant losses since the public health crisis disrupted the ordinary course of Business throughout the country. To remedy the loss, Trip.com's chief executive officers (CEOs) waived their right to salaries to help the company recover its financial troubles.
Trip.com CEOs Jane Sun and chairman James Liang announced that they would stop withdrawing their company officer salaries to aid the company in recovering from its financial losses. Sun told Trip.com's staff that members of the senior management would take voluntary pay cuts as well.
The said waiver resulted in the corporate officers' willingness to receive only half of their regular salaries while the CEOs entirely waived theirs. According to Bloomberg, the directors would stop receiving their pay voluntarily by March of this year.
The company operates and owns Skyscanner and Ctrip, two of China's largest online travel platform. However, the companies failed to indicate the number of salaries incurred by those who waived their rights to full compensation.
The report, however, highlighted that based on annual data provided by Trip.com, cash compensation for corporation's directors amounted to 1.7 million USD in 2018 alone.
It was also discussed that the public health crisis in China has adversely and significantly hit the travel and tourism industries of the world. Demand for travel continually reduces as businesses impose travel restrictions on their employees globally. Airlines were also reported to have canceled several trips that also resulted in the cancellation of significant events such as the Mobile World Congress and the Geneva Motor Show.
The report claimed that the International Air Transport Association had cost global airline companies 113 billion USD in revenues. It was also revealed that more than 20 percent of passenger numbers fell in Asia and Europe. Additionally, hotels such as the Hilton Group, Marriott and InterContinental were also perceived to lose significantly revenues due to the public health crisis as well.
Last month, Trip.com told CNN Business that there had been millions of canceled orders since the outbreak.
Trip.com was reported to submit its financial report for the fourth quarter of 2019 newt week. It was also announced that its directors would inform its investors on the current standing of the company and how the public health crisis has affected the Business.
In other industries, Amazon has declared the observance of remote work for employees residing in China. The company claimed that such a measure is deemed necessary to prevent further damage caused by the public health crisis.
