Hotel merchants partnering with Trip.com Group Limited (TRIP.COM-S) report losing pricing autonomy under the platform's dominant market position, with many calling themselves "exploited slaves" of the "monopoly."

Regulatory authorities have taken action. On September 17, Zhengzhou's market regulator conducted administrative talks with Trip.com. Earlier on August 5, Guizhou's regulator similarly summoned Trip.com, Tongcheng Travel, Douyin, Meituan, and Fliggy over competition concerns.

At the core of complaints is Trip.com's "Price Adjustment Tool," which automatically lowers hotel rates on its platform when detecting higher prices elsewhere—often without merchant consent. According to Jiaotong International estimates, Trip.com and its affiliates now control nearly 70% of China's online travel agency (OTA) market.

**The "Price Adjustment Tool" Controversy** Regulators identified this tool as enabling Trip.com to: 1. Force participation in promotions 2. Undercut competitors like Meituan by 5-10% 3. Penalize non-compliant merchants with reduced visibility or delisting

Black Cat Complaint Platform records show 369 grievances about the tool since 2022. One hotel reported ¥10,000 losses from unauthorized price cuts, while a homestay owner described being "forced to price below Meituan by dozens of yuan."

**Monopoly Building Through Acquisitions** Trip.com's market dominance stems from strategic moves: - 2014: Invested $200M in Tongcheng - 2015: Acquired eLong (37.6% stake) and Qunar (45% voting rights) - Current portfolio includes Tujia, Hanting, and BTG Hotels

By 2024, Trip.com captured 56% market share by GMV (70% including affiliates), dwarfing Meituan's 13%. Its platform now lists 750,000 domestic and 1.2 million international hotels.

**Financial Impact** While Trip.com thrives: - 2025 H1 profit: ¥9.19B (¥50.54M daily) - 81% gross margin (vs JD's 15.89%)

Hotels suffer: - Beijing's lodging industry saw 92.9% profit decline in H1 2025 - 30,000 hotels closed in two years (95% independent) - Average room rates fell 6% in 2024

Merchants describe additional pressures: - 12-30% commission rates - Mandatory spending on traffic-boosting products ("Pyramid" and "Cloud Ladder") - "Competition Circle" feature allowing rivals to hijack searches

Despite announcing "anti-involution" measures like revamping review systems on September 11, critics argue Trip.com maintains its "traffic hegemony." Industry voices contend only by relinquishing its dual role as "platform and referee" can the hotel sector return to healthy competition focused on service quality rather than platform appeasement.