Trip.com Group Limited Q3 FY2025 earnings call

Key Points

• Travel is thriving with strong domestic and outbound demand. AI-powered tools like Trip.Planner saw a 180% year-over-year surge in unique visits.
• Inbound travel is growing, with expanded visa-free policies aiding growth. Launched Taste of China to promote Chinese cuisine to international visitors.
• Net revenue up 16% y/y due to robust travel demand across segments. Outbound hotel and air bookings grew close to 20% y/y, reaching 140% of 2019 volume. Domestic travel was vibrant with diverse experiences. Inbound travel bookings grew over 100% y/y.
• Mobile is a key growth driver, accounting for over 70% of bookings. Tailored products and services for different segments, including seniors and younger travelers. Partnerships for concerts and events to enhance travel experiences. Harnessing AI to empower partners and improve service standards.

In the third quarter of 2025, Trip.com Group's net revenue was RMB 18.3 billion, a 16% year-over-year increase. Accommodation reservation revenue was RMB 8.0 billion, up 18% year-over-year and 29% quarter-over-quarter. Transportation ticketing revenue was RMB 6.3 billion, up 12% year-over-year and 17% quarter-over-quarter. Packaged tour revenue was RMB 1.6 billion, up 3% year-over-year and 49% quarter-over-quarter. Corporate travel revenue was RMB 756 million, up 15% year-over-year and 9% quarter-over-quarter. Mobile accounts for over 70% of total bookings.

Forward-Looking

• Confident in continued business strength and future opportunities. Disciplined approach to investment and execution for sustainable growth. Focus on enhancing services and empowering the travel ecosystem for long-term value creation.

Q: Joyce Ju from Bank of America asked about AI heading on platforms and AI agents going mainstream.

A: James Liang said AI is a central pillar, TripGenie used in over 200 countries/regions with users up over 200% y/y in H1 2025. Refining balance between AI and conventional search, AI helps hotels with real-time recommendations and operational efficiency.

Q: Alex Yao from JPMorgan asked about near-term consumer behavior, national holiday trends, and impact of Japan-China geopolitical tension on Japan's revenue contribution.

A: Jane Sun said strong 3Ls (long stay, long distance, long tail) trend during holidays. Cross-border growth strong, international capacity at 88% pre-COVID. Japan: travelers choose destinations based on safety, visa, flights; no major impact seen so far.

Q: Thomas Chong from Jefferies asked about hotel and air ticket price trends.

A: Xiaofan Wang said year-on-year decline in hotel and air ticket prices narrowed to low single digits. Domestic hotel capacity expanding, international flight capacity at 88% pre-COVID, cross-border air prices softened but above pre-pandemic levels, hotel prices stable.

Q: Yang Liu from Morgan Stanley asked about consumer sentiment and early thoughts for 2026.

A: Jane Sun said travel industry strong, long-haul trips momentum. Focus on enhancing products/services, international business growth, tapping into inbound travel, silver generation, and young travelers for 2026 growth.

Q: John Choi from Daiwa asked about impact of new strategies from industry peers.

A: Jane Sun said Trip.com invests in technology/AI, offers one-stop solution, excellent customer service including pre-trip/post-trip support, ensuring customer confidence in service and product.

Q: Wei Xiong from UBS asked about international performance and regional operational highlights.

A: Jane Sun said Q3 international bookings up ~60% y/y, APAC up over 50%. Named Best Online Travel Agency in Asia, strong presence in key markets, emerging markets like Middle East and Europe showing momentum, inbound bookings up over 100% y/y with innovative offerings.

Q: Brian Gong from Citi asked about inbound travel updates and catalysts.

A: Jane Sun said inbound customers positive on China's safety, friendliness, food, history, infrastructure. Free visas for over 60 countries, extended transit travel, comprehensive inventory, good service including 24-hour support, driving strong inbound travel growth.

Q: Wei Fang from Mizuho asked about marketing spend on international business.

A: Jane Sun said Q3 marketing strategy delivered solid results, mega sales in major markets, scalable business improving marketing efficiency, upcoming global holidays to execute campaigns, aim to accelerate revenue growth and strengthen market position.

Q: Parash Jain from HSBC asked about global market dynamics and impact on business.

A: Jane Sun said Asia Pacific offers huge potential, fragmented market with low online penetration, Trip.com focuses on localized products and exceptional service, confident in continuous growth trajectory.

Q: Simon Cheung from Goldman Sachs asked about destination service business.

A: Jane Sun said destination service business is small, ~2-3% of total GMV, focus on broadening product coverage and market share over 3-5 years, one-stop ecosystem gives advantage in traffic acquisition and customer experience enhancement.

Q: Ellie Jiang from Macquarie asked about cost outlook.

A: Xiaofan Wang said manage investments with discipline, adjust spending based on market maturity, personnel expansion with high standards, seasonal factors in China, plan to step up marketing investments with global holidays approaching.

Q: Qiuting Wang from CICC asked about margin expansion as international business grows.

A: Xiaofan Wang said too early for 2026 margin commentary, view margin as result of business mix and operating efficiency improvements, innovative strategies and global expansion support potential margin growth comparable to international peers