Trip.com Group Ltd Annual Report - How They Did This Year

This guide helps you understand Trip.com’s performance over the past year. Use it to decide if this company fits your investment portfolio.

1. What does this company do?

Think of Trip.com as the "everything store" for travel. Whether you book a hotel, a flight, or a vacation package, their platform makes it happen. They connect travelers with over 1.7 million hotels and 680 airlines. They use AI to help travelers find inspiration, and over 90% of customers now book through their mobile app. They earn money through five areas: hotel bookings, flight tickets, vacation packages, corporate travel, and other travel services.

2. Financial health: Are they making money?

The company is in a strong position. Total revenue grew from RMB 53.4 billion in 2024 to RMB 62.5 billion in 2025—a 17% increase. Profit also surged, reaching RMB 33.4 billion in 2025, nearly double the previous year.

Their balance sheet is healthy. They ended 2025 with RMB 39.8 billion in cash and another RMB 32 billion in short-term investments. This provides a large safety net, allowing them to fund operations and new projects without needing to borrow money.

3. Major wins and strategy

Trip.com wins by meeting customers where they are:

• Mobile-First: With over 90% of orders coming through mobile, they capture "on-the-go" travelers. Keeping users in their app also lowers the cost of finding new customers.
• The "Open Platform" Model: Partners post deals directly on the site. This gives customers variety without Trip.com needing to own the hotels or planes. This "asset-light" model helps them grow quickly without spending heavily on physical property.
• Global Expansion: They are growing fast in the Asia-Pacific region by using their strong brand and local services.

4. Key risks: What could hurt the stock price?

Be aware of these risks:

• The VIE Structure: Trip.com uses a "Variable Interest Entity" (VIE) structure. Because of Chinese laws, you don't technically own the underlying Chinese assets. Instead, you own a contract that gives you the right to the company's profits. This is more complex and riskier than owning a standard U.S. company, as these contracts depend on Chinese court rulings.
• Regulatory Environment: The Chinese government has significant oversight. Changes in data security, anti-monopoly laws, or rules for overseas listings could hurt the company or your investment.
• Market Sensitivity: Travel is a luxury. If the economy slows, vacations are often the first thing people cut. The company is also vulnerable to geopolitical tensions, health crises, and natural disasters, which can cause travel demand to drop suddenly.

5. Future outlook

Management is focused on long-term stability. They are investing in AI to provide personalized travel tips and better customer service. They are also expanding globally, targeting both international travelers visiting China and Chinese travelers going abroad. By offering everything from insurance to visa services, they make it harder for users to leave their app, increasing the value of each customer.

6. The Bottom Line

Trip.com is a highly profitable, mobile-first travel giant with plenty of cash. If you believe in the global travel rebound and are comfortable with the risks of the VIE structure and Chinese regulations, this is a major player to watch. To make your final decision, compare their impressive profit growth against your personal comfort level with the regulatory and structural risks inherent in Chinese tech stocks.