Trip.com Group Ltd Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
Trip.com Group Ltd's Q3 2025 earnings call highlighted strong financial performance driven by robust travel demand, particularly in outbound and international markets. The company is focusing on AI innovation, global expansion, and catering to diverse traveler segments. Management discussed financial results, business segment performance, industry trends, growth strategies, and provided forward-looking statements.
Key Financial Results
Net revenue for Q3 2025 was RMB 18.3 billion, a 16% increase year-over-year and a 24% increase from the previous quarter.
Accommodation reservation revenue was RMB 8.0 billion, an 18% increase year-over-year and a 29% increase quarter-over-quarter.
Transportation ticketing revenue was RMB 6.3 billion, a 12% increase year-over-year and a 17% increase quarter-over-quarter.
Packaged tour revenue was RMB 1.6 billion, a 3% increase year-over-year and a 49% increase quarter-over-quarter.
Corporate travel revenue was RMB 756 million, a 15% increase year-over-year and a 9% increase quarter-over-quarter.
Adjusted EBITDA was RMB 6.3 billion, compared to RMB 5.7 billion in the same period last year, and RMB 4.9 billion in the previous quarter.
Diluted earnings per ordinary share and per ADS were RMB 28.61 or $4.02 for the third quarter of 2025.
Non-GAAP diluted earnings per ordinary share and per ADS were RMB 27.56 or $3.87 for the third quarter.
Business Segment Results
Accommodation reservation revenue was driven by strong momentum in outbound and international hotel bookings, along with sustained strength in domestic demand.
Transportation ticketing revenue saw robust growth in international air bookings, with outbound air bookings continuing to outpace the market.
Packaged tour revenue growth was primarily driven by the expansion of international offerings.
Corporate travel revenue increased due to more companies adopting managed corporate travel services.
Capital Allocation
As of September 30, 2025, the balance of cash and cash equivalents, restricted cash, short term investment held to maturity time deposit and financial products was RMB 107.7 billion or $15.1 billion.
The company maintains a disciplined approach to investment and execution, focusing on sustainable growth and long-term value creation.
Industry Trends and Dynamics
Travel demand surged across markets, led by vibrant domestic travel in China and a steady rise in outbound journeys.
Travelers are exploring with confidence, seeking authentic experiences and new horizons.
Inbound travel continues to play a vital role in fostering international exchange, trade, and innovation.
Outbound travel continues to post solid growth, with outbound hotel and air bookings growing by close to 20% from last year and reaching about 140% of 2019 volumes.
Domestic travel also remained vibrant, fueled by travelers' passion for new and immersive experiences.
International bookings on the platform grew by around 60% year-over-year.
Mobile continues to be a key growth driver, now accounting for over 70% of total bookings.
Affluent and active seniors are eager to explore and spend on quality travel, reshaping the market from price competition toward a true value creation.
Younger travelers are also shaping new trends in travel, seeking experiences that go beyond the ordinary.
Competitive Landscape
The company is harnessing technology and AI to help the entire travel ecosystem move forward.
Hotels can now overcome language barriers with AI communication tools that respond to guest inquiries in real time.
AI content generator and training tools also empower hoteliers to produce engaging content and sharpen their digital skills, helping them connect with international guests.
Updated hotel scoring and page ranking algorithms encourage hotels to focus on genuine service and lasting guest satisfaction.
Macroeconomic Environment
Expanded visa-free entry policies and broader coverage of the 240-hour transit visa exemption have made it easier than ever to visit China.
Growth Opportunities and Strategies
Leveraging AI innovation and delivering world-class service to make travel easier, more personalized, and more enjoyable.
Launched Taste of China, an immersive dining experience for international visitors.
Launched a Free Layover experience for travelers at Hong Kong International Airport.
Tailoring more products and services for the growing senior segment through the Old Friends Club.
Formed strategic partnerships with live entertainment companies to allow fans to plan entertainment trips seamlessly.
Strengthening event booking capabilities through partnership with Cityline Group.
Tailoring products and services to meet diverse traveler needs, such as Muslim-friendly options and smart toilets for Japanese users.
Focusing on capturing more demand and providing excellent services to customers domestically, tapping into the great opportunity for inbound travel and silver generation and young travelers.
Financial Guidance and Outlook
The company is confident in the continued strength of its business and future opportunities.
Looking ahead, the company will continue to execute signature campaigns using a proven play book while staying agile to capitalize on the emerging market trends.
The company aims to accelerate revenue growth and strengthen its market position, including expanding its organic mobile user base.
The company remains focused on improving efficiency by growing direct mobile traffic, enhancing cross-selling, and strengthening customer loyalty.
In the long run, the company does not see any structural limitations to its profit margins, and margins could be comparable to those of its international peers.
