The company’s quarterly performance was buoyed by resilient demand, with international platform bookings climbing 65% and inbound travel surging 90% compared to the previous year. Despite these gains, the firm faces significant headwinds. Net income dropped to RMB2.5 billion from RMB4.3 billion in the same period last year, reflecting increased operational costs and a shift in market conditions. Management now expects revenue growth to decelerate to a range of 3% to 8% for the second quarter.
Executive Chairman James Liang emphasized that the company is prioritizing destination readiness to sustain long-term value, while CEO Jane Sun highlighted the role of AI-powered tools in bridging gaps for international travelers. However, the company remains under the microscope of the State Administration for Market Regulation (SAMR). Following a notice in January regarding potential monopolistic conduct, Trip.com is actively cooperating with authorities. The potential outcome of this investigation—ranging from significant fines to mandated changes in business operations—remains a critical uncertainty for stakeholders as the company balances its global expansion with domestic regulatory compliance.
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