a result of the expanding user base and improving cross selling from transportation to accommodation. Gross margin was 77% for the sub quarter of 2021 decreasing from 79% in the previous quarter, mainly due to reduce the top line recovery interrupted by new ways of infections. Excluding share based compensation charges, our adjusted our pretty expenses decreased by 32% compared to the same period in 2019. Adjusted Product Development Expenses for the sub quarter increased by 20% from the same period in 2020, and increased by 2% from the previous quarter, mainly reflecting the general increase in salary of product development personnel. We continued to run lean and maintain a stable <unk> count. Uh, in the, in the, in the team, it is a saving of 19% when compared to the same period in 2019. Adjusted sales and marketing expenses for the third quarter decreased by 10% from the previous quarter, as we swiftly adapt to the changing market conditions and followed a more prudent spending protocol in response to the uncertainty brought about, brought about by the pandemic. This reflects a saving of 49% when compared to the same period in 2019. Adjusted DNA expenses for the third quarter decreased by 5% from the previous quarter, it also increased by 83% year over year, primarily due to a reversal of bad debt provision in the third quarter of 2020 for the company's travel suppliers. And it is a saving of 20% when compared to the same period in 2019. Adjusted EBITDA for the third quarter with RMB 537 million compared to RMB 916 million in previous quarter. Adjusted EBITDA margin was 10% for the sub quarter compared to 16% in the previous quarter. Diluted loss per ordinary share and per ADS were RMB 1.32 or $20 cents for the third quarter. Excluding share based compensation charges and fair value changes of equity, securities investments, and exchangeable senior notes, non gap diluted earning per ordinary share and per ADS were RMB, uh, 81 cents or $13 cents for the third quarter. As of September 30th, 2021, the balance of cash and cash equivalence restricted cash, short term investment, how to maturity time deposit and financial product was RMB 67.6 billion or $10.5 billion. We redeemed early, uh, $500 million of the 2025 booking and <unk> house notes in <inaudible> quarter and another $500 million of the same convertible notes in December, reducing a potential dilution of 14.6 million ordinary shares. Turning to the fourth quarter of 2021, we would like to share some color of our, uh, business. In China, during the national day holiday, our domestic hotel reservation reached the double digit growth during, uh, during the beginning of the holiday while transportation reservations close to the pre co- COVID level. Multiple rounds of COVID cases that began in mid October as spread to more than 20 provinces, largely impact the entire China domestic travel industry. In November, the industry level hotel occupancy rate was down by 30 to 40% and air ticket passengers down 50 to 60%, both compared with the same period in 2019. Trip.com Group was also affected, but we continue to lead market performance by at least 10 to 20%. Onboard travel remain rather muted in current conditions. Uh, while outside of China, the recovery momentum in Europe and the US continues to carry over to October with increased the fried segment, benefiting from the relaxation of travel restrictions and vaccine roll outs. The path to global recovery is set, but not without ups and downs. We will continue to be adaptive and responsive to changing market conditions and be flexible and agile to seize opportunities to create value for our users and partners. With that operator, please open the line for questions. Thank you. If you wish to ask a question, please press * 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press * 2. If you're on a speaker phone, please pick up the handset to ask your question. In the interest of time, we please ask that you limit to one question per person. Your first question comes from Thomas Chung from Jeffries. Please go ahead. Hi, James, Jane, Cindy. Uh, good morning. Thanks for taking my questions. Can you share some color about the company's plan for the international business? Uh, how do you think about the pace of recovery in open travel as the restrictions are lived? Thank you. In the recent months, many countries have adopted to border reopening plans to relax, travel re- restrictions. More and more people are back on the road than travel further. Though some countries have returned into restrictions recently due to Omicron variant, the temporary turbulence will not change the ultimate trend of travel recovery. Under normal conditions we may see China gradually relaxing, inbound and outbound travel policies in the second half of 2022. The process reopening is expected to begin with mainland China reconnecting with Hong Kong and then traditional openings with other international markets. The pace and range are largely depending on relaxation rate and the pandemic and control capability in related markets. We'll continue to enhance our product and service competitiveness in the domestic market and fully prepared for the recovery of international markets. In the past two years, Trip.com Group has demonstrated its resilience by leading the industry recovery despite COVID headwind, making us a stronger company, we believe that our local focus global vision strategy will drive our sustainable growth in the long run. Thank you. Your next question comes from James Lee from Mizuho. Please go ahead. Great. Uh, thanks for taking my questions. Uh, two quick, two quick ones here. Uh, hi, Jane. Uh, how should we think about maybe the travel activity heading to Chinese new year, that being first and second for a think outbound travel to Hong Kong, any early read that you are seeing on consumer demand and behavior there. Thank you. Sure. Thanks, James. Um, the opening up of, uh, Macau really provide a very good, uh, leading indicator for, for the consideration of Hong Kong. Uh, so we were just in Macau holding our global partnership meeting and the control of the virus over there, uh, is, uh, being conducted very well. Uh, so that provides, uh, everyone in the travel industry, some experience as to what will happen if Hong Kong opens up. So we are very much looking forward, uh, to a very good control of the virus in Hong Kong continuously. And with that, uh, condition, uh, there might be a, a good, uh, consideration for opening up of Hong Kong, and that also connects to our, uh, plan for the Chinese new year. Historically, uh, these, uh, uh, Hong Kong is a very popular travel destination, uh, for Chinese new year as people try to, uh, go visit, uh, different cities and doing some shopping in Hong Kong. Uh, so hopefully there will be, uh, uh, enough supporting, uh, evidence as to the well controlled environment, uh, both in, uh, mainland China and in Hong Kong, uh, which give us the support to