Trip.com Group is stepping up spending to expand its international footprint and inbound tourism strategy, even as it argues that the online travel agency (OTA) model can remain relevant in an era when artificial intelligence may reshape how travelers discover and plan trips.
The China-based travel platform reported fourth-quarter net revenue of RMB 15.4 billion (USD 2.2 billion), up 21% year-on-year (YoY), with growth across its core booking categories. Accommodation reservation revenue rose 21% to RMB 6.3 billion (USD 882 million), while transportation ticketing increased 12% to RMB 5.4 billion (USD 756 million). Packaged tours revenue climbed 21% to RMB 1.1 billion (USD 154 million), and corporate travel revenue grew 15% to RMB 808 million (USD 113.1 million).
The quarter also underscored the tradeoffs in Trip.com’s current strategy. Profitability remained solid but declined sequentially, partly due to seasonality. Income from operations was RMB 2.5 billion (USD 350 million), and adjusted EBITDA was RMB 3.4 billion (USD 476 million), implying an adjusted EBITDA margin of 22%, down from 35% in the September quarter.
A larger factor behind the margin shift was higher spending, particularly on marketing. Sales and marketing expenses rose 30% year over year to RMB 4.4 billion (USD 616 million), equivalent to 29% of net revenue. Management framed this not as weakening demand but as a deliberate decision to direct incremental marketing dollars toward international expansion, aiming to sustain user acquisition and bookings outside its home market.
The result is a quarter that reflects not post-pandemic normalization, but a scaling effort on two fronts: expanding cross-border travel flows and defending the platform’s role in the booking stack as technology evolves.
Building a larger funnel, not just taking share
Management characterized inbound tourism as a structural growth driver rather than a temporary reopening boost. In its earnings release, Trip.com said it served approximately 20 million inbound travelers in 2025, while overall bookings on its international OTA platform increased by around 60% YoY for the full year.
In practical terms, these metrics point to an effort to expand the platform’s addressable market by strengthening both demand and supply readiness. Management highlighted initiatives to onboard more hotels and attractions into “inbound-ready” services, positioning Trip.com less as a distributor of existing inventory and more as an organizer of inbound capacity.
That strategy carries costs. The quarter’s expense profile shows that Trip.com is reinvesting rather than simply harvesting recovery demand. Product development expenses increased 19% YoY to about RMB 4 billion (USD 560 million) in the fourth quarter, while sales and marketing rose 30%. Together, these figures indicate that expansion is being supported by both product capability and customer acquisition spending.
Preparing for a shift in how trips are planned
The earnings call devoted significant attention to a risk that has not yet materially affected financials: the possibility that consumer-facing AI agents could become a primary entry point for travel planning, potentially reshaping traditional search funnels and altering where OTAs capture value.
Management’s argument was straightforward: inspiration may become easier with AI, but completing a bookable itinerary requires real-time inventory and pricing, secure payment systems, guaranteed fulfillment, and post-booking service. These functions depend on deep supply chain integration and operational infrastructure. Even if AI changes how travelers begin planning, Trip.com expects to retain a central role in executing and servicing bookings.
Economically, this amounts to a defense of its take rate. If AI becomes the front door for travel intent, Trip.com aims to remain the transaction and service layer that controls booking execution and customer support, rather than becoming a commoditized backend provider.
Factors to consider
Trip.com’s reported earnings were also influenced by investment-related gains, which can distort quarter-to-quarter comparisons. Net income attributable to shareholders was RMB 4.3 billion (USD 602 million) in the fourth quarter, compared with RMB 19.9 billion (USD 2.8 billion) in the third quarter. The company attributed the sequential decline primarily to investment gains recorded in “other income” in the prior quarter.
The key point is not that profits fell in the fourth quarter, but that headline net income can fluctuate significantly based on investment marks, even when underlying operating demand remains stable. Adjusted EBITDA, which grew YoY but reflected seasonality and heavier marketing investment, provides a clearer view of operating performance.
Management also disclosed that it had received notice of a regulatory investigation initiated by China’s State Administration for Market Regulation and said it is cooperating. The company did not specify potential outcomes or quantify the financial impact.
Trip.com ended 2025 with substantial liquidity, including RMB 105.8 billion (USD 14.8 billion) in cash, cash equivalents, restricted cash, short-term investments, and certain deposits and financial products as of December 31, 2025. This balance sheet provides capacity to fund a strategy that prioritizes expansion and technology investment.
The near-term question is whether that spending translates into durable advantages. Investors will likely watch whether international expansion begins to show improving profitability as marketing scales, whether inbound tourism broadens beyond a limited number of corridors through deeper supply integration, and whether Trip.com’s transaction-and-service layer remains defensible if AI-driven discovery accelerates and competition shifts toward fulfillment, service reliability, and partner integration.