Trip.com Group (TCOM) Q1 FY26 earnings call: guidance and Q&A

How will Trip.com leverage its vertical strength to stay competitive as AI agents increase their share in customer discovery and booking?

James Liang explained that AI will improve travel planning but not replace specialized platforms due to the need for reliable execution, real-time inventory, and robust service infrastructure. Trip.com's strategy involves strengthening its own AI capabilities (e.g., AI assistant for search, efficiency gains) and connecting to broader AI ecosystems through APIs to embed its supply into leading AI platforms, capturing AI-driven demand.

“AI may evolve the entry point into travel, but the long-term winners will be those who reliably turn complexity into confidence.”

asked by Simon Cheung of Goldman Sachs · answered by James Liang

What are the key initiatives to drive the goal of 200 million inbound travelers over the next 5 years, and how do they support international expansion?

Jane Sun highlighted favorable visa policies (80+ countries visa-free, 10-day in-transit), payment improvements (Alipay/WeChat Pay foreign credit card use), and Trip.com's efforts. These include inviting 1,000+ KOLs, offering 24/7 multi-language call center support (30+ languages), connecting with 110,000+ suppliers (14,000 first-time), and providing a one-stop shopping platform for hotels, flights, attractions, and transport.

“Our nation's policy for inbound has opened up very favorably. As of now, more than 80 countries have received visa-free treatment.”

asked by Yang Liu from Morgan Stanley · answered by Jane Sun

How would Trip.com characterize the recent competitive landscape in China, including regulatory developments and emerging AI-driven platforms?

Jane Sun stated that the domestic OTA market remains rational, focusing on quality, supply coverage, and user experience, not price wars. Compliance enhancements are leading to platform governance and fair competition, which Trip.com supports, despite short-term pressure. For AI, while it reshapes discovery, travel remains complex, requiring strong supply integration, fulfillment, and after-sales service, which are Trip.com's core strengths.

“Travel remains to be a very complex and service-intensive transactions where supply integration, fulfillment reliability and after-sales service are critical.”

asked by Thomas Chong of Jefferies · answered by Jane Sun

Could Trip.com provide updates on the ongoing regulatory review and its potential impact on near-term performance and longer-term outlook?

Cindy Wang stated that the company is cooperating with authorities but it's premature to speculate on timelines or outcomes. They have proactively refined business practices for compliance, which may cause near-term impact but is constructive for long-term healthy development. They believe a well-regulated market benefits consumers and competition.

“These adjustments may introduce the near-term impact on our business and financial performance. But we believe we are -- but we believe they are constructive for the longer-term period, healthy development of both of our business and the broader travel industry.”

asked by Wei Fang from Mizuho · answered by Xiaofan Wang

How should Trip.com understand the potential financial impact of the recent regulatory guidance on train ticketing practices, especially regarding value-added services?

Cindy Wang confirmed support for the guidance. She noted that domestic train ticketing's direct contribution to overall revenue has declined due to business diversification. While optimization of rail-related products may create near-term headwinds (already incorporated into Q2 outlook), the company's diversified business mix, cross-selling, and efficiency gains will support sustainable growth.

“From a financial standpoint, our business has become increasingly diversified over time with continued growth across accommodation, international travel and other segments. Consequently, domestic train ticketing's direct contribution to overall revenue and earnings has meaningfully declined over the years.”

asked by Joyce Ju of Bank of America · answered by Xiaofan Wang

Could Trip.com provide an update on recent booking trends, elaborate on Q2 guidance, and discuss the outlook for summer travel and H2?

Jane Sun reiterated Q2 net revenue growth guidance of 3-8% due to macro and operational factors. China business saw softened air travel demand due to higher airfares, while domestic hotel ADR turned positive. International business saw reduced long-haul demand but healthy accommodation. Inbound travel remained strong. For H2, visibility is limited, with a prudent outlook expecting current dynamics to persist, focusing on disciplined execution and long-term growth drivers like Trip.com expansion, inbound travel, and AI.

“For our Chinese base -- China business, air travel demand has softened versus the Q1 as higher airfares are influencing travel behaviors.”

asked by Wei Xiong of UBS · answered by Jane Sun

What are the key operational highlights of Trip.com's international business, and what is the outlook for overseas markets in 2026?

Cindy Wang highlighted 65% YoY growth in international OTA gross bookings, with inbound travel up 90%. Mobile bookings reached a new record. APAC remains the cornerstone. The company focuses on timely assistance, local operations, and long-term capabilities. Strong operational efficiencies are translating into an improved margin profile. For 2026, focus is on APAC expansion, AI/product innovation, and service infrastructure, maintaining a disciplined ROI approach in other markets.

“Gross bookings of our international OTA platform increased by approximately 65% year-over-year, with inbound travel remaining a key driver, growing approximately 90% year-over-year.”

asked by Brian Gong of Citi · answered by Xiaofan Wang