The rise of a leading Chinese online travel agency is becoming an increasing threat to its global rivals.
In its Q2 2024 financial report, Trip.com Group recorded the second-highest operating profit in history, driven by an oversupply in China’s accommodation sector and the ongoing recovery of Chinese outbound tourism. Notably, the international Trip.com platform remains a minor contributor to the group’s overall revenues and profits.
Despite ranking fourth globally in profitability, Trip.com Group’s post-pandemic growth signals a renewed challenge to the top three international players, Booking Holdings, Airbnb and Expedia.
A look at the Q2 EBITDA of major global travel companies further illustrates this competitive pressure: Trip.com Group’s USD 610 million EBITDA amounts to 78% of Expedia's, 68% of Airbnb's, and 32% of Booking's. This competition is especially intense in the fight for Asia’s travel inventory.
Trip.com Group’s Q2 operating profit reached RMB 3.56 billion (USD 501 million). However, Haize Capital’s custom metric, which includes "equity in income of affiliates," shows a record-breaking RMB 4.64 billion (USD 654 million) profit, reflecting the group's overall operational strength.
Accommodation remains a key revenue driver. The accommodation segment, one of the group’s core businesses, saw a 20% year-on-year revenue growth this quarter, compared to only 1% in transportation. Haize Capital attributes this to Trip.com Group's strong position in both domestic and outbound accommodation for Chinese travelers.
