Trip.com (TCOM) - Q3 2025 Earnings Call
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Call Details
Call Title: Trip.com Group Q3 2025 Earnings Conference Call
Date Held: November 17, 2025
Management Team Members Present:
Mr. James Liang, Executive Chairman of the Board
Ms. Jen Sam, Chief Executive Officer
Ms. Cindy Wong, Chief Financial Officer
Call Summary
Financial Performance
Trip.com reported a net revenue of RMB 18.3 billion for Q3 2025, marking a 16% year-over-year increase and a 24% rise from the previous quarter, driven by robust travel demand during peak seasons.
Revenue from accommodation reservations reached RMB 8.0 billion, an 18% increase from last year and up 29% quarter-over-quarter, indicating strong growth in both outbound and domestic hotel bookings.
The transportation ticketing segment generated RMB 6.3 billion, a 12% increase year-over-year, demonstrating the ongoing recovery in air travel and ticket sales.
Packaged tour revenue rose to RMB 1.6 billion, a 3% year-over-year improvement, but reflecting a more substantial quarter-over-quarter increase of 49%, largely attributed to international offerings.
Corporate travel revenue increased by 15% year-over-year to RMB 756 million as companies adopted managed travel services, showing a robust demand.
The company’s Adjusted EBITDA for the quarter was RMB 6.3 billion, an increase from RMB 5.7 billion in Q3 2024, showcasing strong operational efficiency and profitability.
Diluted earnings per ordinary share were reported at RMB 28.61 or USD 4.02, which included a one-time gain from an investment divestment, affecting year-over-year comparability.
As of September 30, 2025, cash and cash equivalents stood at approximately RMB 107.7 billion (USD 15.1 billion), indicating a strong liquidity position.
Guidance
Management expressed confidence in the ongoing strength of operational performances and future opportunities, with disciplined investment strategies in place to ensure sustainable growth.
Cindy Wong highlighted an expectation for continued revenue growth while balancing operational expenditures, as they aim for improved efficiency across segments.
Analysts were assured of growing international markets, with explicit reference to the targeted growth in inbound travel initiatives as a key focus for future quarters.
Capital Allocation
Trip.com emphasized a disciplined approach to investments, especially in marketing and overseas expansion.
Increased sales and marketing expenses by 26% from the previous quarter and 23% year-over-year reflect a shift to support broader international outreach, aiming to capture growing tourist demand.
The management team plans to utilize incremental budget allocations to enhance global market presence, particularly in under-penetrated regions, which was highlighted as crucial for driving long-term value.
Adjustments in operational and personnel expenditures were noted, reinforcing Trip.com’s commitment to maintaining efficiency while expanding their workforce in high-growth regions.
Macro & Demand Trends
Strong travel demand was reported, especially during key holiday periods such as the Golden Week, with outbound bookings experiencing a notable surge exceeding 30% year-over-year.
Management noted that travelers increasingly seek long-haul and immersive experiences, reshaping market dynamics as the consumer behavior shifts towards premium offerings.
Domestic travel has remained vibrant, with encouraging growth reported in emerging and remote destinations, reflecting a broadening base of traveler interests beyond traditional hotspots.
The appetite for experience-driven travel is prominently growing, with over 100% growth in inbound travel bookings attributed to enhanced cultural offerings and user experiences.
Competition
Amidst rising competition from other OTAs like Agoda, Jen Sam pointed out that Trip.com focuses on customer safety and flexibility, offering a unique one-stop solution that includes not just travel bookings but also ensuring customer well-being on their journeys.
Management is confident in positioning Trip.com as a trustworthy partner, enhancing its competitive edge by offering seamless customer service and instant crisis solutions during travel disruptions.
The increasing market demand leads to stronger investments in technology and AI enhancements, which support not only user engagement but also operational efficiency, setting Trip.com ahead of peers.
NOTABLE QUOTES:
“Travel is thriving and the travel spirit shows no signs of slowing down.” - Michelle Chee
“Outbound travel continues to post solid growth... travelers’ growing desire for diverse, immersive, and high-quality experiences.” - James Liang
“Our net revenue... increased by 16% year-over-year, reflecting strong demand across segments during peak travel season.” - Cindy Wong
“AI is a central pillar of our strategy... enhancing every step of the traveler’s journey.” - Michelle Chee
“We remain confident in the industry’s long-term growth and continue to enhance our services.” - James Liang
“Travelers are increasingly willing to invest in high-quality travel experiences, highlighting strong consumption power.” - James Liang
“Our international bookings grew by around 60% year over year... demonstrating robust growth despite macroeconomic uncertainties.” - Jen Sam
“We will continue to invest globally, particularly across Asia Pacific, to accelerate our growth.” - Jen Sam
“In the long run, we do not see any structural limitations to our profit margins.” - Cindy Wong
“We are continuously improving our customer service level to make sure we offer the best product, best technology, and best service.” - Jen Sam
Q&A SUMMARY:
Q: Joyce Chi (Bank of America), What is management’s view on the trajectory for AI agents and their mainstream adoption?
A: Michelle Chee stated, “AI is a central pillar of our strategy... we see AI as a tremendous opportunity to make travel more accessible, reliable, and enjoyable,” emphasizing a strong commitment to leveraging AI across platforms.
Q: Alex Yao (JP Morgan), Can you provide insights on consumer trends during the national holiday?
A: Jen Sam noted trends like “long stay, long distance, and long tail,” highlighting surpassing growth rates in bookings both domestically and internationally, exceeding 30% for outbound travel during the holidays.
Q: Thomas Chong (Jefferies), How have hotel and air ticket price trends changed recently?
A: Cindy Wong conveyed that while there was a year-on-year decline in prices, pressure remains from increasing domestic capacity. Prices trended higher during major holidays due to demand before easing post-holiday.
Q: Yang Liu (Morgan Stanley), What are the early thoughts for 2026 regarding travel sentiment?
A: Jen Sam reflected the strong outlook, “We view challenges as opportunities... we aim to meet evolving traveler needs,” focusing on inbound opportunities and expanding partnerships.
Q: John Choi (Daiwa), How might industry peers’ strategies affect Trip.com?
A: Jen Sam stressed “we invest heavily in our technology and AI... ensuring confidence for consumers when they travel with Trip.com,” reinforcing competitive advantages through enhanced customer care.
Q: Wei Xiong (UBS), Could you elaborate on international performance?
A: Jen Sam shared robust growth, “tracking a 60% increase in international bookings,” revealing successful market penetration strategies particularly in the Asia-Pacific region.
Q: Brian Gong (Citi), Can you provide updates on the inbound business?
A: Jen Sam highlighted strong feedback and increased services for inbound travelers, noting, “We offer 24-hour service... ensuring we drive volume for inbound travel efficiently.”
Q: Wei Fang (Mizuho), What are your plans for marketing activities moving forward?
A: Jen Sam highlighted the strategy’s success, “Our marketing strategy has delivered solid results... executing signature campaigns to accelerate revenue growth in upcoming global holidays.”
Q: Parish Jain (HSBC), How are you addressing competition and market positioning?
A: Jen Sam explained their unique value proposition, stating, “We focus on delivering one-stop total solutions... ensuring efficiency for the whole industry benefits all players.”
Q: Qiu Ting Wang (CICC), How do you expect margins to expand with international growth?
A: Cindy Wong remarked on improvements in operational efficiency, asserting, “We do not see any structural limitations to our profit margins,” positioning for comparative success with international peers.
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