Trip.com Group Limited (NASDAQ: TCOM; HKEX: 9961)

Trip.com Group delivered outstanding financial performance in Q2 2025, with net revenue growing 16% year-over-year to RMB14.8 billion (US$2.1 billion). This robust growth was driven by stronger travel demand, particularly during holiday periods, and the company’s successful international expansion strategy. The 7% sequential growth from Q1 2025 demonstrates the company’s ability to capture increasing travel demand throughout the year.

Net income surged 26% year-over-year to RMB4.9 billion (US$681 million), reflecting both revenue growth and operational efficiency improvements. This represents a net income margin of approximately 33%, demonstrating the company’s strong profitability and effective cost management. The increase from RMB3.9 billion in Q2 2024 and RMB4.3 billion in Q1 2025 shows consistent profit growth momentum.

Adjusted EBITDA reached RMB4.9 billion (US$680 million), representing a 10% increase from the same period in 2024. The Adjusted EBITDA margin of approximately 33% reflects the company’s operational excellence and scalable business model. This strong margin performance was achieved despite increased investments in product development and international expansion.

Diluted earnings per ordinary share and per ADS reached RMB6.97 (US$0.97), while non-GAAP diluted earnings per share was RMB7.20 (US$1.01). The strong earnings performance demonstrates the company’s ability to generate substantial value for shareholders while investing in future growth opportunities.

The company maintained an exceptionally strong balance sheet with cash and cash equivalents, restricted cash, short-term investment, and held to maturity time deposit and financial products totaling RMB94.1 billion (US$13.1 billion). This robust cash position provides significant strategic flexibility for investments, acquisitions, and shareholder returns.

Accommodation Reservation was the standout performer with revenue of RMB6.2 billion (US$869 million), representing a robust 21% year-over-year increase. This segment benefited from increased accommodation reservations and stronger travel demand, particularly during holiday periods. The 12% quarter-over-quarter growth demonstrates sustained momentum in the accommodation booking business, reflecting both domestic and international travel recovery.

Transportation Ticketing generated revenue of RMB5.4 billion (US$753 million), an 11% increase from the same period in 2024. While growth was solid, the flat sequential performance suggests some seasonal patterns typical in the transportation sector. The growth was primarily driven by increased transportation reservations, with both domestic and international travel contributing to the performance.

Packaged-Tour revenue reached RMB1.1 billion (US$151 million), showing a 5% year-over-year increase and impressive 14% quarter-over-quarter growth. The sequential acceleration reflects the recovery in organized travel and group bookings, particularly as international borders remained open and travel restrictions continued to ease. This segment particularly benefited from the stronger holiday travel demand.

Corporate Travel demonstrated strong recovery with revenue of RMB692 million (US$97 million), growing 9% year-over-year and 21% quarter-over-quarter. This performance reflects the continued normalization of business travel patterns as companies resumed regular operations and business activities. The strong sequential growth suggests corporate travel demand is gaining momentum.

Others segment showed exceptional growth of 31% year-over-year to RMB1.5 billion (US$205 million), reflecting the company’s successful expansion into ancillary services and new revenue streams. This segment’s strong performance demonstrates Trip.com’s ability to monetize its platform beyond traditional travel booking services.

Trip.com Group’s international business delivered exceptional performance in Q2 2025, demonstrating the success of the company’s global expansion strategy and positioning as a leading international travel platform:

International Growth Highlights

• International OTA Platform: Overall reservations increased by over 60% year-over-year, reflecting strong market penetration and customer acquisition
• Inbound Travel: Bookings surged by over 100% year-over-year, indicating robust recovery in international visitors to China and other key markets
• Outbound Travel: Hotel and air ticket bookings have surpassed 120% of the pre-COVID level for the same period in 2019, demonstrating full recovery and growth beyond pre-pandemic levels
• Market Expansion: Continued strengthening of Trip.com’s position as a trusted global travel platform

The company’s international business performance reflects several strategic advantages. First, Trip.com has successfully leveraged its technology platform and operational expertise to serve diverse markets worldwide. The company’s ability to provide seamless local experiences for global travelers has been a key differentiator in competitive international markets.

Inbound travel growth of over 100% year-over-year represents a significant opportunity as international borders remain open and travel confidence continues to recover. This growth demonstrates Trip.com’s strong positioning to capture demand from international visitors, particularly as China and other Asian markets continue to welcome foreign tourists.

The outbound travel performance, surpassing 120% of pre-COVID 2019 levels, indicates that Trip.com’s customers have not only returned to travel but are traveling more frequently than before the pandemic. This suggests strong underlying demand and customer loyalty, as well as the company’s successful retention and acquisition strategies.

Trip.com’s international expansion strategy focuses on capturing growing demand from every demographic while enhancing service capabilities to provide global travelers with seamless local experiences. This approach has strengthened the company’s position as a comprehensive global travel platform, differentiating it from purely domestic competitors.

Trip.com Group demonstrated strong operational efficiency while making strategic investments for future growth. The company’s cost structure reflects balanced approach between growth investments and profitability maintenance:

• Cost of Revenue: Increased 22% to RMB2.8 billion (US$393 million), representing 19% of net revenue. The increase was generally in line with revenue growth fluctuations
• Product Development: Rose 17% to RMB3.5 billion (US$489 million), or 24% of net revenue, primarily due to increased personnel-related expenses as the company continues to invest in technology and innovation
• Sales and Marketing: Increased 17% to RMB3.3 billion (US$464 million), representing 22% of net revenue, reflecting investments in promotional activities and customer acquisition
• General and Administrative: Rose modestly by 2% to RMB1.1 billion (US$153 million), or 7% of net revenue, demonstrating operational leverage

The company’s investment in product development, representing 24% of net revenue, reflects Trip.com’s commitment to technological innovation and platform enhancement. These investments are critical for maintaining competitive advantages in user experience, operational efficiency, and service quality. The focus on personnel-related expenses indicates the company’s emphasis on attracting and retaining top talent.

Sales and marketing expenses increased 17% year-over-year, showing the company’s continued focus on customer acquisition and brand building, particularly in international markets. The 22% of revenue allocation demonstrates a balanced approach between growth investments and profitability maintenance. The 11% quarter-over-quarter increase reflects seasonal marketing activities and promotional campaigns.

General and administrative expenses showed excellent operational leverage, increasing only 2% year-over-year while revenue grew 16%. This demonstrates the scalability of Trip.com’s business model and effective cost management across administrative functions. As a percentage of revenue, G&A expenses decreased, showing improved operational efficiency.

Income tax expense was RMB998 million (US$139 million) in Q2 2025, compared to RMB693 million in Q2 2024. The increase reflects higher pre-tax income and various tax-related factors including changes in profitability of subsidiaries with different tax rates and deferred tax liabilities.

Trip.com Group continues to execute on its strategic vision of being a leading global travel platform while maintaining strong capital discipline and shareholder value creation:

Key Strategic Priorities

• Global Platform Expansion: Continuing to strengthen Trip.com’s position as a trusted platform in the global travel landscape through strategic partnerships and enhanced service capabilities
• Technology Innovation: Significant investments in product development to enhance user experience, operational efficiency, and platform capabilities
• Inbound Travel Focus: Special attention to capturing growing inbound travel demand with targeted service enhancements for international visitors
• Market Leadership: Leveraging scale advantages and operational expertise to capture market share across all customer demographics

Capital Allocation Strategy

Trip.com Group demonstrates disciplined capital allocation focused on long-term value creation:

• Share Repurchase Program: As of August 27, 2025, the company had repurchased 7 million ADSs with total gross consideration of US$400 million under its existing program
• New Authorization: The board authorized a new US$5 billion share repurchase program in August 2025, demonstrating confidence in the business and commitment to shareholder value
• Strategic Investments: Continued investment in technology, international expansion, and partnership development to drive long-term growth
• Innovation Focus: Prioritizing investments in platform enhancements and service capabilities to maintain competitive advantages

Executive Chairman James Liang emphasized the company’s long-term perspective: “Travel is a key driver in national growth and global engagement. It serves not only as an engine for economic development but also as a catalyst for cultural exchange, global understanding and social vitality. We remain confident in the industry’s long-term growth and will continue to prioritize strategic investments in innovation, partnership development, and inbound travel expansion.”

CEO Jane Sun highlighted the company’s strategic focus: “Our strategy focuses on capturing growing demand from every demographic, with special attention to inbound travel. At the same time, we are enhancing our service capabilities to provide global travelers with seamless local experiences. These efforts further reinforce our position as a trusted platform in the global travel landscape.”

The company’s strategic initiatives reflect a balanced approach between capturing immediate growth opportunities and building long-term competitive advantages. The focus on inbound travel represents a significant opportunity as international tourism continues to recover and grow beyond pre-pandemic levels.