Trip.com Group Limited
- Open
- 44.78
- Day high
- 44.88
- Day low
- 43.33
- Prev close
- 42.45
- Volume
- 4.0M
- Mkt cap
- $27.8B
- P/E (TTM)
- 6.2
- EPS (TTM)
- $7.09
- P/B
- 1.1
- P/S
- 2.9
- Yield
- —
- Per share
- —
Trip.com Group Limited (TCOM) is a Consumer Cyclical company listed on NASDAQ. The stock is down 30% over the past year.
Trip.com Group Limited (TCOM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 6 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TCOM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 25, 2026 | $0.85 | $0.83 | -2.4% | $2.3B | +2.1% |
| Feb 26, 2026 | $0.72 | $0.71 | -1.3% | $2.2B | +1.9% |
| Nov 17, 2025 | $1.15 | $3.87 | +236.5% | $2.6B | +23.2% |
| Aug 27, 2025 | $0.98 | $1.01 | +3.1% | $2.1B | +1.3% |
| May 19, 2025 | $0.86 | $0.82 | -4.7% | $1.9B | -0.3% |
| Nov 18, 2024 | $0.91 | $1.25 | +37.4% | $2.3B | +1.6% |
| May 20, 2024 | $0.62 | $0.83 | +33.9% | $1.6B | +1.9% |
| Nov 20, 2023 | $0.71 | $1.00 | +40.8% | $1.9B | +0.4% |
| Sep 4, 2023 | $0.50 | $0.70 | +40.0% | $1.6B | +4.6% |
| Mar 31, 2023 | — | $0.73 | — | $1.3B | — |
| Dec 14, 2022 | $0.11 | $0.22 | +100.0% | $965M | +5.2% |
| Mar 23, 2022 | $-0.09 | $0.08 | +188.9% | $647M | -3.5% |
Trip.com Group Limited company profile
Overview
Trip.com Group Limited (NASDAQ:TCOM) is a leading Chinese online travel agency founded in 1999 and headquartered in Singapore. Originally known as Ctrip.com International, the company rebranded to Trip.com Group in 2019 to reflect its global expansion strategy. The company has grown from a domestic Chinese travel booking platform into one of the world's largest online travel service providers, operating multiple brands including Ctrip, Qunar, Trip.com, and Skyscanner. Trip.com serves both domestic Chinese travelers and international customers across 39 countries, offering comprehensive travel services from accommodation and transportation to packaged tours and corporate travel management.
Business
Trip.com Group operates as a comprehensive online travel agency (OTA) in the travel services industry, which involves connecting travelers with hotels, airlines, tour operators, and other travel service providers through digital platforms. The OTA industry serves as an intermediary between travelers seeking bookings and travel suppliers offering inventory, typically earning commissions on successful transactions. The company operates four primary business segments: 1. Accommodation Reservation Services (approximately 35-40% of revenue): This segment acts as an agent for hotel-related transactions, connecting travelers with accommodation providers ranging from budget hotels to luxury resorts. The platform allows users to search, compare, and book hotel rooms, with Trip.com earning commission fees from hotel partners for each successful booking. 2. Transportation Ticketing Services (approximately 35-40% of revenue): This includes selling air tickets as an agent for airlines, as well as providing train, long-distance bus, and ferry tickets. The segment also offers ancillary services such as travel insurance, flight delay coverage, online check-in, seat selection, and airport VIP lounge services. 3. Packaged Tour Services (approximately 6-8% of revenue): Trip.com provides bundled travel products for independent leisure travelers, including group tours, semi-group tours, and customized packages that combine transportation, accommodation, and destination activities. These packages often include air, cruise, bus, and car rental arrangements. 4. Corporate Travel Management (approximately 4-6% of revenue): This B2B segment serves corporate clients with business travel solutions, including an integrated Corporate Travel Management System that handles booking authorization, travel reporting, expense management, and industry benchmarking for companies managing employee travel. The company also generates revenue from online advertising services, where travel suppliers pay for promotional placement on Trip.com's platforms, and emerging financial services related to travel transactions.
Revenue model
Trip.com Group operates on a commission-based business model where it earns fees from successful travel bookings rather than charging travelers directly. When customers book hotels through the platform, Trip.com receives commission payments from hotel partners, typically ranging from 10-20% of the booking value. Similarly, for airline tickets, the company earns commissions from airlines for each ticket sold, plus fees for ancillary services like seat selection and travel insurance. The company's paying customers are primarily the travel suppliers - hotels, airlines, tour operators, and other service providers who pay commissions to access Trip.com's customer base. For corporate travel services, businesses pay service fees for travel management solutions. Additionally, travel suppliers pay for advertising and promotional placement on the platform. Several factors influence Trip.com's profit margins. Positive margin drivers include the recovery of higher-margin outbound travel, which typically generates better commissions than domestic bookings, and the growth of packaged tour services that command premium pricing. The company's AI initiatives and technology investments aim to improve operational efficiency and reduce customer service costs. Market share gains in international markets, particularly in Asia-Pacific, also contribute to margin expansion. Margin pressures come from intense competition in the Chinese OTA market, which can compress commission rates as suppliers negotiate better terms. Increased marketing spending to acquire customers and expand internationally reduces profitability. Economic downturns affect travel demand and pricing power, while regulatory changes in travel policies can impact booking volumes. The company also faces seasonal fluctuations, with lower margins during off-peak travel periods, and must invest heavily in technology and AI development to maintain competitive advantages.
Competitive moat
Trip.com Group possesses a moderate to strong competitive moat built primarily on network effects, scale advantages, and brand recognition in the Chinese travel market. The company's strongest moat comes from its dominant position in China's online travel booking market, where it has built extensive relationships with both travelers and suppliers over two decades. This creates a virtuous cycle where more travelers attract more suppliers, and vice versa, making the platform increasingly valuable to both sides. The company's scale advantages are significant, particularly in negotiating power with hotels and airlines due to its large booking volumes. Trip.com can secure better rates and exclusive inventory that smaller competitors cannot access. Its comprehensive technology infrastructure, including AI-powered recommendation engines and multilingual customer service across 16 global call centers, creates operational efficiencies that are difficult for new entrants to replicate quickly. However, the moat faces several challenges. Competition from global players like Booking.com and Expedia in international markets limits expansion opportunities, while domestic competitors like Meituan and emerging platforms continue to pressure market share. The travel industry's relatively low switching costs mean customers can easily move between platforms if they find better deals or services elsewhere. Potential disruption could come from direct booking trends, where hotels and airlines increasingly encourage customers to book directly through their own platforms to avoid commission fees. AI and voice assistants might also change how travelers search and book, potentially reducing the importance of traditional OTA interfaces. Additionally, super-apps in various markets could integrate travel booking as just one feature among many services, potentially commoditizing the OTA experience. The company's international expansion strategy is crucial for maintaining its moat, as the Chinese market becomes increasingly saturated and competitive.
Risks & safety
Trip.com Group demonstrates a strong margin of safety with robust financial fundamentals and conservative capital management. • Liquidity and Solvency: The company maintains excellent liquidity with RMB 7.0 billion in cash and short-term investments as of Q4 2024, representing over 20% of total assets. Current ratio of 1.51 indicates solid ability to meet short-term obligations. Debt-to-equity ratio of 0.28 shows conservative leverage with low financial risk. • Cash Generation: Strong operational cash flow of RMB 2.67 billion in 2024 with free cash flow of RMB 2.59 billion demonstrates the business's ability to generate substantial cash. No significant cash burn concerns. • Valuation Metrics: Trading at P/E ratio of 20.2x based on 2024 earnings, which appears reasonable for a dominant market leader with growth prospects. EV/EBITDA of 22.3x reflects premium valuation but justified by market position and growth trajectory. • Profitability: Strong return on equity of 12% in 2024 shows efficient capital utilization. EBITDA margins have recovered to healthy levels around 28% as travel demand normalized. • Other Considerations: The company maintains a disciplined capital allocation strategy with USD 400 million share repurchase program and USD 200 million dividend for 2025, demonstrating confidence in cash generation and returning value to shareholders.
Recent development
Trip.com Group has undergone significant strategic evolution over the past few years, transitioning from pandemic recovery to aggressive expansion and technological innovation. The company's most notable development has been its comprehensive AI integration strategy, launching multiple AI-powered tools including TripGenie, Trip.Best, and Trip.Trends. TripGenie, the company's AI travel assistant, has shown remarkable adoption with 200% traffic surge and doubled conversation rates, demonstrating the potential for AI to enhance user engagement and operational efficiency. The company has pivoted toward demographic-specific market segments, particularly targeting the "silver generation" (travelers over 50) through its Old Friends Club initiative. This segment has shown strong growth, with senior users spending RMB 1.6 billion year-to-date, representing a shift from traditional group tours to more personalized travel experiences. Simultaneously, Trip.com is capturing younger travelers by integrating entertainment with travel products. International expansion has accelerated significantly, with the company strengthening its presence across 39 countries and establishing 16 global call centers. International business now represents 14% of group revenue, with particularly strong growth in Asia-Pacific markets where the company aims to achieve leadership within 3-5 years. The global OTA platform has shown impressive growth, with overseas revenue increasing 80% year-over-year. A major strategic focus has been developing inbound travel to China, capitalizing on visa-free policies and border reopening. Inbound travel bookings increased over 100% year-over-year, with the company launching initiatives like free city tours to attract international visitors. This represents a significant opportunity as inbound travel currently contributes minimally to GDP compared to other countries. The company has also embraced sustainability and social responsibility initiatives, establishing 34 country retreats that have generated employment for over 20,000 people and boosted local income by RMB 30 million. These efforts align with rural revitalization strategies while creating new revenue streams and improving the company's ESG profile.
TCOM company profile · for informational purposes only — not investment advice.
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