Trip.com Group Ltd (9961.HK) Q1 2026 Earnings Call Transcript

Neutral Travel Services 35.67B Singapore

Next Earnings

2026-05-17

Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours, in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides travelers bundled packaged-tour products, such as group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; ticket, activity, insurance, visa, and tour guide services; and user support, supplier management, and customer relationship management services; and in-destination products and services. Further, it provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services; Omni-Channel Touchpoints for Users; and Open Platform for Ecosystem Partners. It operates under the Ctrip, Qunar, Trip.com, Travix, Travelfusion, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.

Trip.com delivered solid 2025 growth with strong inbound and international momentum, advancing AI initiatives, while awaiting regulatory clarification and maintaining a disciplined capital return program.

⭐ Key Highlights

Inbound travel as growth engine

Inbound travel remains a core pillar with 20 million inbound travelers served in 2025 and plans to double that number in 2026.

International expansion and APAC focus

International OTA bookings grew ~60% YoY in 2025; APAC remains the primary growth region with ongoing localization and brand penetration efforts.

AI strategy as a long-term differentiator

Trip.com is building proprietary, vertical AI tools and an end-to-end AI infrastructure to enhance supply, search, and service, while maintaining a strong emphasis on live inventory and fulfillment.

Financials – solid 2025 results

Full-year net revenue RMB 62.4b (+17% YoY); adjusted EBITDA RMB 18.9b (+11% YoY); Q4 net revenue RMB 15.4b (+21% YoY).

Regulatory scrutiny and shareholder return

SAMR investigation disclosed; company cooperating and reiterating commitment to shareholder value via a continued repurchase program.

✔Positive Signals

Inbound travel growth and scale (20 million inbound travelers in 2025; plan to double in 2026)
International OTA bookings up ~60% YoY in 2025
Q4 net revenue up 21% YoY and full-year net revenue up 17% YoY
Adjusted EBITDA for 2025 at RMB 18.9b (positive profitability trajectory)
Active shareholder return program and completed repurchases

✖Negative Signals

Regulatory investigation by SAMR with ongoing cooperation and potential impact uncertainty
Higher SG&A and R&D/marketing spend contributing to expense inflation (adjusted S&M up 30% YoY for full year 2025; S&M as % of net revenue at 24%)
No formal 2026 numeric guidance provided in the call

📊Financial Results

Q4 2025 net revenue RMB 15.4 billion, +21% YoY
Full-year 2025 net revenue RMB 62.4 billion, +17% YoY
Q4 2025 gross margin and EBITDA not disclosed in detail; Adjusted EBITDA Q4 RMB 3.4 billion; full-year RMB 18.9 billion, +11% YoY
Accommodation reservation revenue Q4 RMB 6.3 billion, +21% YoY; full-year RMB 26.1 billion, +21% YoY
Transportation ticketing revenue Q4 RMB 5.4 billion, +12% YoY; full-year RMB 22.5 billion, +11% YoY
Cash and equivalents including equivalents and investments RMB 105.8 billion as of 12/31/2025

🔮Future Guidance

No explicit 2026 numeric guidance provided
Management reiterated three strategic priorities (Inbound tourism, social responsibility, AI innovations) and a disciplined investment approach, with expectations of improving profitability trajectory in international markets and sustained investment in AI and inbound capabilities

💡Interesting Insights

Inbounds now account for a relatively small share of China's GDP recovery potential (China inbound could be 5–10x higher than current levels, per the management's view; a massive growth opportunity)
Entertainment-plus-travel strategy delivered triple-digit growth in 2025, highlighting the importance of experience-driven demand in travel decisions

Detailed Analysis

AI-generated summary of Trip.com Group Ltd earnings call transcript.

In 2025, Trip.com Group benefited from resilient travel demand, with inbound travel emerging as a key growth vector supported by a broad initiative to improve international visitor experiences, expand APAC-led international bookings, and scale AI-enabled tools. The company reported full-year net revenue of RMB 62.4 billion and adjusted EBITDA of RMB 18.9 billion, with Q4 net revenue up 21% year over year to RMB 15.4 billion. Inbound travel served about 20 million travelers, and international bookings rose strongly, aided by a 60% YoY increase in international OTA bookings. Management highlighted three long-term priorities—Inbound tourism, social responsibility, and AI innovation—while noting ongoing regulatory scrutiny from SAMR. The firm maintained a disciplined capital allocation stance, including clearing its share repurchase quota, and expects to continue investing to drive sustainable growth, though no explicit numeric guidance for 2026 was provided.

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