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Earnings call · Jun 2026 (Q2 FY26)

Trip.com Group Q2 FY26 earnings call TCOM

Sep 16, 2026 Source

Executive summary

Trip.com Group Q2 FY26 — Strong International Growth Amidst Regulatory Changes and Macro Headwinds

Trip.com Group delivered resilient Q2 FY26 results, navigating a complex operating environment marked by macroeconomic uncertainties and elevated fuel prices. The company's G2 strategy, focusing on globalization and great quality, drove strong growth in international businesses and inbound travel, while domestic demand remained robust. Significant regulatory changes from the SAMR, including a RMB 5.18 billion penalty and adjustments to partner collaboration frameworks, are being implemented to foster a healthier competitive environment and are expected to cause near-term volatility but support long-term sustainable growth.

Highlights

5

  • Group net revenue increased by 6% year-over-year to RMB 15.7 billion.

  • International OTA platform revenue increased over 50% year-over-year.

  • Inbound travel revenue increased high double digit year-over-year.

  • AI-assisted orders through TripGenie increased by approximately 400% year-over-year.

  • Customized tour bookings increased 600% in H1 2026.

Concerns

4

  • Transportation ticketing revenue decreased by 1% year-over-year due to softer demand, elevated fuel prices, geopolitical tensions, and operational adjustments.

  • Accommodation reservation revenue growth was partially offset by a RMB 122 million contra-revenue item related to the SAMR administrative penalty.

  • Adjusted EBITDA decreased to RMB 4.6 billion from RMB 4.9 billion in the prior year period.

  • Elevated fuel prices and airfares increased travel costs and weighed on longer-haul and outbound demand.

Guidance & targets

CategoryTargetConfidence
Inbound travelers served
200 million
high materiality
High
Incremental AI investment
Disciplined and manageable
medium materiality
High
International business share of group revenue
Increasing share
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Accommodation reservation
Mainly driven by solid growth in international hotel bookings, partially offset by a RMB 122 million contra revenue item related to the SAMR administrative penalty. Excluding this item, revenue would have increased by 8%.
RMB 6.6 billion6%——
Transportation ticketing
Decline primarily driven by softer demand, elevated fuel prices, geopolitical tensions, and operations adjustments related to industry standards and compliance. Partially offset by strong performance from international OTA platform.
RMB 5.4 billion-1%——
Packaged tour
Supported by strong growth on international OTA platform and continued momentum in customized tours across markets.
RMB 1.2 billion8%——
Corporate travel
Reflected continued penetration of managed corporate travel services among corporate clients.
RMB 771 million11%——
International OTA platform (Trip.com brand)
Growth driven by higher transaction value and favorable mix. Margin improvement driven by better marketing efficiencies, economies of scale, and improved flight economics. APAC is largest growth contributor, Europe and Americas delivered faster growth from a smaller base.
Mobile bookings share: over 70% of total bookings
—over 50%—meaningful margin improvement
Inbound travel
One of the fastest-growing businesses. APAC is core source market, strong seasonal growth from Europe and Americas. Travelers exploring beyond traditional destinations and seeking immersive cultural experiences.
—high double digit——

Risks & headwinds

Macroeconomic and geopolitical uncertainties This quarter (Q2 FY26)

Volatility across markets

Mitigation:Focus on globalization and great quality, long-term trajectory of global travel remains strong.

Elevated fuel prices and airfares Q2 FY26

Increased cost of travel, weighed on longer haul demand; partially offset by higher average booking value for flights.

Mitigation:Travelers adjusting destination preferences to short-haul and visa-free destinations; viewed as cyclical rather than structural.

Softer demand across markets Q2 FY26

Transportation ticketing revenue decreased by 1% YoY.

Mitigation:Strong performance from international OTA platform partially offset the decline.

Operations adjustments related to industry standards and compliance Q2 FY26

Contributed to 1% decrease in transportation ticketing revenue.

Mitigation:Part of ongoing efforts to strengthen operating model and support long-term development.

Near-term volatility in domestic performance Near term

Expected as partners transition to new upgrading model and market practices adjust.

Mitigation:Longer-term growth trajectory to be driven by underlying business strength and G2 strategy, particularly international expansion.

War in the Middle East Short term (Q2 FY26)

Airlines reducing long-haul flights, impacting travel volume.

Mitigation:Customers showing good resilience, company adapting to new trends (Premium, Purposeful, Bleisure travel).

Summer storms and rains Short term (Q2 FY26)

Put some pressure on transportation.

Mitigation:Customers showing good resilience, company adapting to new trends.

What to watch in Q3 FY26

Domestic performance volatility from SAMR changes

Next quarter
Current Expected some volatilities
Target Stabilization and transition to new framework

Why it matters

The SAMR rectification measures are significant, and their near-term impact on domestic operations and partner relationships needs to be monitored for stabilization.

In the near term, on our business operations side, as partners transition to the new upgrading model and market practices adjust, we expect some volatilities on our domestic performance

Q&A highlights

How does the SAMR decision affect Trip.com's strategy?

Management fully accepted the decision, viewing it as an opportunity to reinforce their G2 strategy (great quality and globalization). They will focus on improving value for partners, enhancing technology, and expanding international business, including inbound travel. They aim for a more open and transparent domestic ecosystem.

“We believe a more open and transparent domestic ecosystem will provide a stronger foundation for us to execute G2 with great speed, discipline and long-term value creation.”

asked by Simon Cheung · answered by Jane Sun

2 min read 6 chapters

Detailed narrative

Globalization and Inbound Travel Focus

Trip.com Group is bullish on the long-term potential of inbound travel, committing to accelerate its development by investing in a stronger ecosystem, empowering local partners, and making China more accessible. Inbound travel revenue grew high double-digit year-over-year in Q2 FY26, with APAC as a core source market and strong seasonal growth from Europe and the Americas. Travelers are exploring beyond traditional destinations and seeking immersive cultural experiences. The company aims to serve 200 million inbound travelers over the next five years.

AI Integration and Impact

The company is advancing proprietary AI capabilities across the travel journey, making travel more personalized and seamless. AI-assisted orders through TripGenie increased approximately 400% year-over-year, with nearly 60% of interactions now booking-related. Trip.com has rolled out fully AI-powered search, improving user experience and platform engagement. While AI-related CapEx is expected to increase in the near term, the company anticipates long-term efficiency gains and higher conversion rates to offset these costs.

Regulatory Compliance and Partner Framework Changes

Following an administrative decision from the State Administration for Market Regulation (SAMR), Trip.com Group recognized a RMB 5.18 billion expense and RMB 122 million contra-revenue item in Q2 FY26. The company is discontinuing its Tier 1 and Tier 2 distribution programs, transitioning partners to a new multitiered framework that emphasizes service quality, product differentiation, and customer experience over price. These changes are expected to cause near-term volatility in domestic performance but are viewed as strengthening the operating model for long-term sustainable growth.

Evolving Travel Trends and Domestic Resilience

Despite macro complexities, domestic travel demand remained robust in Q2 FY26, supported by holidays and spring break programs. Family travel bookings and spending in pilot cities increased over 300% year-over-year. There's a shift towards less traditional, lower-density destinations, short-haul trips, and immersive experiences combining tourism with dining, accommodation, and culture. Entertainment is also a significant driver, with 7 out of 10 event tickets booked on the platform associated with cross-city travel in H1 2026.

International Business Momentum and Premiumization

The international OTA platform saw revenue growth of over 50% year-over-year, driven by higher transaction value and a favorable mix. This growth is increasingly fueled by premium and personalized travel demand, with first and business class flight bookings up over 70% and customized tour bookings up 600% in H1 2026. The Trip.com brand achieved meaningful margin improvement due to better marketing efficiencies, economies of scale, and improved flight economics.

Strategic Priorities: G2 Strategy

The company's G2 strategy, focusing on Globalization and Great Quality, remains central to its long-term growth. Globalization aims to expand global reach and capture inbound travel opportunities, while great quality emphasizes differentiated products, superior service, and compelling value. This strategy aligns with the industry's evolution towards competition centered on quality, value, and experience, leveraging Trip.com's deep industry relationships and operational expertise.

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