Trip.com Group’s growth in China has plateaued, and to achieve a market value increase of more than 30%, the company must rely on the growth of its international platform, the Trip.com brand, which saw a 48.7% year-over-year growth rate in Q3.
However, Trip.com’s revenue in the Asia Pacific region still lags behind that of its European and American counterparts.
Revenue share comparison in the Asia Pacific region:
1. The Trip.com brand has the highest proportion of room nights sold through its app, estimated to be over 70%. Major rivals in Europe and America come close, with Booking at 54%-57% and Airbnb at 58%.
2.In Q3, the Trip.com brand's Asia Pacific revenue accounted for about 9% of the group's total revenue, roughly USD200 million.
75% of Airbnb's revenue comes from the five core markets (US, Canada, Australia, France and UK), with 15% from nine secondary expansion markets including South Korea, Japan and India. Haize Capital estimates that the Asia Pacific market contributes less than 17%, or about USD630 million.
Around 24% of Booking’s room nights are booked by APAC travelers, with an estimated 22% of total revenue from the region, about USD1.76 billion, considering the region’s lower ADR.
3. For Trip.com, accommodation-related revenue makes up more than 40% of its total revenue. Booking generates around 90% of its total revenue from accommodations, while Airbnb exceeds 95%.
When excluding Trip.com Group’s dominant position in the Chinese market, its competition with European and American OTAs in Asia Pacific highlights its advantage in app-based direct sales and customer retention. However, this advantage is not absolute.
