Trip.com Group Earnings Call Highlights Global Growth
Trip.com Group Ltd. Sponsored ADR ((TCOM)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Trip.com Group’s latest earnings call struck an upbeat tone, as management highlighted strong growth across key metrics and a solid financial cushion. Executives pointed to robust revenue expansion, accelerating international momentum, and a powerful rebound in inbound tourism, while acknowledging higher spending and regulatory uncertainty that could temper margins in the near term.
Full-Year Bookings Surge and Revenue Expands
Trip.com reported core OTA gross bookings of about RMB 1.1 trillion for 2025, underscoring the scale of its platform and demand recovery. Group net revenue climbed 17% year over year to RMB 62.4 billion, signaling broad-based strength across travel categories despite a competitive environment.
Strong Q4 Driven by Winter Travel Demand
In the fourth quarter, net revenue reached RMB 15.4 billion, up 21% year over year, as winter holiday travel fueled bookings. This quarterly acceleration suggests that consumer appetite for travel remains resilient into the peak season, providing a solid exit rate heading into 2026.
Profitability Holds Up with Ample Cash Reserves
Income from operations rose 11% to RMB 15.8 billion, while adjusted EBITDA for 2025 reached RMB 18.9 billion, also up 11% year over year. The company ended the year with RMB 105.8 billion in cash and liquid assets, giving it significant flexibility to fund expansion and absorb potential shocks.
Lodging and Transport Revenues Power Core Business
Accommodation reservation revenue grew 21% to RMB 26.1 billion in 2025, with Q4 lodging revenue also up 21% to RMB 6.3 billion, reflecting strong hotel demand. Transportation ticketing revenue increased 11% to RMB 22.5 billion for the year and 12% in Q4 to RMB 5.4 billion, showing steady growth in air and ground travel.
International OTA Momentum Builds
International OTA gross bookings surged about 60% year over year, making overseas travel a key growth engine. Management noted that international business now contributes roughly 40% of total revenue and bookings, up from around 35% in 2024, highlighting the group’s rising global footprint.
Inbound Travel Rebounds and Supply Expands
The platform served about 20 million inbound travelers in 2025, with demand nearly doubling from the prior year as cross-border travel resumed. Trip.com connected this traffic to roughly 150,000 hotels, including more than 63,000 that welcomed inbound guests via the platform for the first time, expanding supply depth.
Niche Segments: Private Tours, Entertainment, Corporate
Private tours grew more than 20% in 2025, generating around RMB 11 billion in transaction value and supporting 110,000 guides and drivers. Entertainment-plus-travel posted triple-digit growth with 1,540 shows ticketed globally, while corporate travel revenue rose 13% to RMB 2.8 billion, serving about 28,000 Chinese enterprises.
Strategic Investment and Brand Recognition
The company invested over RMB 1 billion in inbound travel initiatives and around RMB 2.9 billion to enhance user experience and customer protection, underlining a service-led strategy. It also launched a USD 100 million Tourism Innovation Fund and collected regional awards such as Best OTA in Asia and Brand of the Year in Korea, bolstering brand equity.
Membership and Platform Engagement Climb
The Old Friends Club loyalty program more than doubled its membership and GMV in Q4, reflecting stronger user stickiness and repeat business. Meanwhile, the Influencer 4 Biz hub now serves over 500,000 partners, with commercial collaborations growing nearly 80% month over month, adding a social and creator layer to demand generation.
Regulatory Investigation Adds a New Risk
Management disclosed that in January 2026 the State Administration for Market Regulation opened an investigation into the company. While Trip.com is cooperating, this development introduces regulatory uncertainty and the possibility of future compliance costs or operational changes that investors will closely watch.
Higher Operating Spend Pressures Margins
Adjusted sales and marketing expenses jumped 30% year over year in Q4, and full-year S&M rose to 24% of net revenue from 22%, reflecting heavier investment to support international growth. Combined adjusted product development and G&A costs increased 14%, signaling sustained spending on technology, product, and corporate infrastructure.
Moderate Margin Expansion and EBITDA Growth
Adjusted EBITDA grew 11% in 2025, and Q4 adjusted EBITDA increased to RMB 3.4 billion from RMB 3.0 billion, showing profits are still rising. However, the pace of EBITDA growth trails topline expansion, indicating that Trip.com is deliberately trading some margin for scale and strategic positioning.
Packaged Tours Lag Other Segments
Packaged tour revenue rose 8% to RMB 4.7 billion for the full year, underperforming faster-growing lines like lodging and international OTA. Q4 showed a better picture with 21% year-over-year growth, suggesting a recovery is underway but still catching up with the rest of the portfolio.
Earnings Per Share Impacted by Adjustments
For Q4, GAAP diluted EPS was RMB 6.11 versus non-GAAP diluted EPS of RMB 4.97, while full-year GAAP EPS reached RMB 47.67 compared with RMB 45.59 on a non-GAAP basis. The gap reflects adjustments linked primarily to investment-related items, reminding investors to look beyond headline EPS to understand underlying performance.
Outlook and Strategic Priorities
Looking ahead, management aims to double inbound travelers to about 40 million in 2026 and further lift international OTA’s share of revenue while improving APAC profitability. The company plans disciplined use of its RMB 105.8 billion liquidity, continued buybacks, scaled deployment of its Tourism Innovation Fund, and ongoing AI-driven enhancements to sustain growth and service quality.
Trip.com’s earnings call painted a picture of a platform in expansion mode, supported by solid cash generation and a powerful rebound in travel demand. While higher spending and regulatory scrutiny pose risks, the company’s international growth, inbound surge, and product diversification suggest a favorable long-term trajectory for investors tracking the stock.
