Trip.com Group (TCOM) Q4 FY25 earnings call: guidance and Q&A

Could management share an update regarding the recent SAMR investigation and assess its potential impact on business in 2026 and longer term?

Trip.com Group is actively cooperating with the State Administration for Market Regulation and will provide updates as appropriate. The company remains focused on its core priorities: driving inbound tourism, deepening social responsibility initiatives, and accelerating AI innovations, believing a collaborative and fair ecosystem is critical for long-term industry development.

“Trip.com Group is actively cooperating with the State Administration for Market Regulation of the China throughout its review process, and we continue to engage constructively and transparently and will provide further updates as appropriate in accordance with applicable laws and regulations.”

asked by Yang Liu · answered by Xiaofan Wang

How do you evaluate the impact of AI agents like Gemini and Qwen on your OTA business model, and what is your strategy to sustain your value proposition?

The company views generative AI as a catalyst, reinforcing the importance of its transactional and service layers. They are building direct agent-to-agent transactional capabilities with AI partners and advancing native AI agents. Their strategy focuses on proprietary data and vertical AI, a strong global supply chain for real-time bookings, and end-to-end service and trust, which are difficult for general AI models to replicate.

“The core OTA model is built on three pillars: inspiration, transaction and service. While AI agents excel at inspiring travel, they also reinforce the critical importance of our transactional and service layers which are central to our business.”

asked by Alex Yao · answered by James Liang

Can you provide guidance on the future growth trajectory for inbound tourism into 2026 and beyond, given it's a core pillar?

Inbound travel to China is at the start of a significant growth cycle, with potential for 5 to 10x growth, as it currently accounts for only 0.5% of China's GDP. The company is uniquely positioned due to local expertise and global reach, promoting 'super destinations,' empowering local partners for global readiness, and enhancing traveler experiences. They served over 20 million inbound travelers in 2025, growing rapidly, and aim to double the number of cities with high inbound travel contribution in 2026.

“We believe that inbound travel to China is at the start of a significant and sustainable growth cycle. Currently, inbound tourism only accounts for about 0.5% of China's GDP compared to the highest contribution country, which is Thailand, more than 10% of the GDP are from inbound travel.”

asked by Simon Cheung · answered by Jane Sun

Could you share color on booking trends during Chinese New Year, consumer sentiments, and break down business by geographic contribution?

The 2026 Chinese New Year saw robust double-digit growth in domestic hotel business with modest ADR increases, and double-digit growth in outbound business, especially long-haul. International OTA platform achieved ~60% YoY growth quarter-to-date. Consumer sentiment remains strong, with average spending per user stable in 2025. International business contributed about 40% of total revenue and bookings in 2025, up from 35% in 2024, expected to continue growing.

“Our international business contributed about 40% of total revenue and bookings in 2025, up from around 35% in 2024. We expect this momentum to continue, mainly fueled by the rapid growth of our Trip.com brand.”

asked by Thomas Chong · answered by Xiaofan Wang

Have you observed intensifying competition in the domestic travel market, and how do you maintain your competitive edge?

Competition in the domestic market is dynamic and healthy. Trip.com maintains its edge through high-level 24/7 customer service, comprehensive product offerings (flights, hotels, packages, etc.), and global coverage. These strengths allow them to support customers domestically and internationally, especially during unexpected events, ensuring peace of mind and reliable support.

“Our competitive edge is anchored in a couple of fronts. First of all, we have always focused on high level of the services. We offer 24/7 excellent customer service.”

asked by Brian Gong · answered by Jane Sun

With strong growth overseas, could you share some operational highlights and outlook for 2026?

International OTA platform gross bookings increased ~60% YoY in 2025, with APAC as the primary region and strong growth from the Middle East. Inbound tourism, driven by visa-free regions, contributed significantly. For 2026, the focus remains on APAC expansion and exploring other regions. Improved profitability trajectory is expected for the international OTA business, particularly in APAC, supported by a mobile-first strategy and continued strategic investments.

“In 2025, gross booking for our international OTA platform increased by around 60% year-over-year. APAC remains the primary region of our international expansion, while booking trends from the Middle East and other regions also demonstrated very strong growth potential.”

asked by Joyce Ju · answered by Xiaofan Wang