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    TCOM
    Earnings call· Mar 2026(Q1 FY26)

    Trip.com Group Q1 FY26 earnings call TCOM

    Jun 25, 2026 Source

    Executive summary

    Trip.com Group Q1 FY26 — Strong Inbound Travel and AI Integration

    Trip.com Group delivered a robust first quarter, driven by strong inbound and international travel demand, alongside significant advancements in AI integration to enhance user experience and operational efficiency. The company is strategically focused on expanding its global footprint and leveraging technology to support a more connected travel ecosystem, while navigating a moderating growth environment and regulatory adjustments in the near term.

    Highlights

    5

    • Inbound travel gross bookings increased by approximately 90% year-on-year in Q1 FY26.

    • Gross bookings on the international OTA platform increased by approximately 65% year-over-year.

    • Domestic small group travel orders increased by 27% year-on-year, with 55% higher per capita spending.

    • Adjusted EBITDA was RMB 4.8 billion, up from RMB 4.2 billion in the prior year period.

    • Corporate travel revenue increased by 20% year-over-year to RMB 690 million.

    Concerns

    3

    • Q2 FY26 net revenue growth is expected to moderate to approximately 3% to 8% year-over-year.

    • Rising energy prices and geopolitical tensions led to higher airfares, tighter airline capacity, and disruptions on certain international routes.

    • Regulatory adjustments to train ticketing practices and other compliance frameworks may create near-term headwinds.

    Guidance & targets

    2
    CategoryTargetConfidence
    Net revenue growth
    approximately 3% to 8% year-over-year
    high materiality
    Medium
    Inbound travelers served
    200 million
    high materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Accommodation reservation
    Mainly attributable to steady momentum in international hotel bookings.
    		RMB 6.5 billion17%——
    Transportation ticketing
    Supported by global expansion and strong demand for international air and ground transportation solutions.
    		RMB 6.1 billion12%——
    Packaged tour
    Mainly driven by the expansion of international offerings and strong demand for small and customized tours.
    		RMB 1.1 billion19%——
    Corporate travel
    Reflected continued penetration of managed Corporate travel services among corporate clients.
    		RMB 690 million20%——

    Operational metrics

    22
    Inbound travel gross bookings growth
    approximately 90%year-on-year
    Q1 FY26

    Asia remained the largest source of inbound travelers, with Europe and U.S. visitors also growing rapidly.

    Inbound travelers served
    7 million
    Q1 FY26

    Laying a strong foundation for long-term growth towards the 200 million goal.

    Inbound travelers served
    20 million
    FY25

    Baseline for the ambitious goal of 200 million inbound travelers over the next 5 years.

    Inbound traveler average stay
    5.1 daysup 11% year-on-year
    Q1 FY26

    Reflecting deeper engagement and a growing preference for more immersive travel experiences.

    Local partners engaged in inbound services
    over 110,000
    Q1 FY26

    Helping partners connect with international travelers and expand their reach.

    Partners receiving first overseas orders
    around 14,000
    Q1 FY26

    Highlights Trip.com's role in helping local businesses participate in the global travel economy.

    Adjusted product development expenses
    12%increased year-over-year
    Q1 FY26

    Mainly due to increase in personnel-related expenses.

    Adjusted G&A expenses
    5%increased year-over-year
    Q1 FY26

    Mainly due to increase in personnel-related expenses.

    Adjusted sales and marketing expenses
    24%increased year-over-year
    Q1 FY26

    Mainly driven by heightened marketing efforts aligned with business expansion.

    Adjusted EBITDA
    RMB 4.8 billioncompared with RMB 4.2 billion in the same period last year
    Q1 FY26

    Strong profitability for the quarter.

    Non-GAAP diluted earnings per ordinary share and per ADS
    RMB 5.73 or USD 0.83
    Q1 FY26

    Excluding share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other income and their tax effect.

    Cash and cash equivalents, restricted cash, short-term investment, held-to-maturity time deposits and financial products
    RMB 104.0 billion or USD 15.1 billion
    as of March 31, 2026

    Strong liquidity position.

    Domestic small group travel orders growth
    27%year-on-year
    Q1 FY26

    Reflecting a shift towards more customized offerings.

    Domestic small group travel per capita spending
    55% highercompared to large group tours
    Q1 FY26

    Indicates higher value consumption in customized travel.

    Domestic small group travel stay length
    11% longercompared to large group tours
    Q1 FY26

    Indicates deeper engagement in customized travel.

    Entertainment-driven travel gross bookings growth
    74%year-on-year
    Q1 FY26

    Driven by global events like sports and concerts.

    Travel-related jobs supported by small group tours
    50,000
    Q1 FY26

    Additional employment opportunities created indirectly across the broader travel ecosystem.

    Globally accessible product offerings - hotels
    approximately 450,000
    Q1 FY26

    Part of upgrading travel infrastructure and service capabilities.

    Globally accessible product offerings - local attraction products
    180,000
    Q1 FY26

    Part of upgrading travel infrastructure and service capabilities.

    Countries with visa-free treatment for China
    more than 80
    Q1 FY26

    Favorable policy opening up inbound travel.

    KOLs invited to China
    more than 1,000
    Q1 FY26

    To showcase China through diverse local perspectives on social media.

    Customer service languages offered
    more than 30
    Q1 FY26

    24x7 support for global travelers.

    Industry KPIs

    4
    MetricValueDetails
    Comparable sales compsmodestly positive%
    Input cost inflation hedginghigher
    Value affordability positioningover 100%%
    Gross bookings value room nightsRMB 300 billionRMB

    Risks & headwinds

    3
    Rising energy prices and geopolitical tensionsQ2 FY26

    Led to higher airfares, tighter airline capacity, and disruptions on certain international routes, particularly long-haul travel, contributing to a moderation in air travel demand and changes in booking patterns.

    Mitigation: Travelers actively adjusted their itineraries and shifted demand toward alternative destinations (e.g., Southeast Asia).

    Regulatory adjustments and compliance frameworksNear-term, Q2 FY26 outlook

    Caused some short-term pressure on metrics, sequential normalization to financials, and near-term headwinds from optimization of certain rail-related products and value-added services.

    Mitigation: Proactively strengthened compliance and operational discipline; viewed as constructive for long-term platform quality, user experience, and sustainable growth.

    Softened air travel demand in ChinaQ2 FY26

    Influenced by higher airfares, leading consumers to optimize destinations, trip plans, and transportation choices.

    Mitigation: Consumers are increasingly optimizing destinations, trip plans, and transportation choices; domestic hotel ADR turned modestly positive year-over-year.

    Q&A highlights

    7

    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

    2 min read6 chapters

    Detailed Narrative

    01

    Inbound Travel Momentum

    Trip.com Group is heavily focused on inbound travel, aiming to serve 200 million inbound travelers over the next five years, up from 20 million last year. In Q1 2026, the company already served approximately 7 million inbound travelers, with gross bookings increasing by 90% year-on-year. This growth is supported by favorable visa policies, increased accessibility, and efforts to connect local partners with international demand, engaging over 110,000 local partners in inbound services.

    02

    AI Integration and Ecosystem

    The company is building and deploying AI agents to support travelers and supply partners, helping overcome language barriers, enhance content quality, and improve service responsiveness. Trip.com is also opening its platform to third-party AI agents, modularizing its travel capabilities (data, inventory, pricing, transaction infrastructure) into AI-ready services. The goal is to be a trusted infrastructure for AI agents, enabling seamless trip planning and booking.

    03

    International and Outbound Travel Resilience

    Gross bookings on the international OTA platform increased by approximately 65% year-over-year, with APAC remaining a strong region. Outbound travel remained resilient, with travelers redirecting to neighboring destinations like Southeast Asia amidst geopolitical fluctuations, demonstrating flexibility in destination choices. Mobile bookings through the app reached a new record high, indicating strong direct traffic and user engagement.

    04

    Domestic Travel Trends and Product Innovation

    Domestic travel benefited from strong seasonal demand, particularly during the Spring Festival. Short-distance travel maintained momentum, and the company's "silver generation" initiatives gained traction, with hotel gross bookings for the Old Friends Club increasing over 100% year-over-year. Entertainment-driven travel also saw significant growth, with gross bookings up 74% year-on-year, driven by events like sports and concerts.

    05

    Regulatory Environment and Compliance

    The company is proactively strengthening its compliance and operational discipline in response to evolving regulatory frameworks in China, particularly regarding platform governance, transparent pricing, and fair competition. While these adjustments may cause short-term pressure and sequential normalization to financials, they are viewed as constructive for long-term platform quality and sustainable growth. The company supports new guidance on train ticketing practices, noting its declining direct contribution to overall revenue due to business diversification.

    06

    Evolving Traveler Preferences

    There's a clear shift towards higher quality, more personalized, and experience-driven travel. Trip.com is innovating by transforming traditional large group tours into smaller, customized offerings, which saw a 27% year-on-year increase in orders, 55% higher per capita spending, and 11% longer stays. The company also supports cultural development initiatives and off-season travel among senior users to improve capacity utilization and create incremental revenue opportunities.

    AI-generated summary of the company’s earnings call. Not investment advice.