Tongcheng Travel reported solid first-quarter results for 2026, underpinned by broad-based expansion in its core online travel agency (OTA) activities and further operating leverage.

Revenue reached RMB 5.01 billion, up 14.4% year-on-year. Core OTA operations contributed RMB 4.45 billion, an increase of 17.3%, while the tourism segment generated RMB 555.89 million, down 5.0% amid weaker outbound package-tour demand. Within core OTA: • Accommodation reservation revenue grew 14.7% to RMB 1.36 billion. • Transportation ticketing revenue rose 6.2% to RMB 2.12 billion. • Other services—including hotel management, value-added user services, advertising and attraction ticketing—surged 59.6% to RMB 961.42 million, aided by the consolidation of Wanda Hotels and Resorts.

Adjusted EBITDA increased 19.8% to RMB 1.39 billion, lifting the margin to 27.7% from 26.5%. Adjusted net profit expanded 19.4% to RMB 941.10 million, pushing the adjusted net margin to 18.8% from 18.0%. Reported profit attributable to shareholders rose 16.5% to RMB 779.33 million.

Cost discipline remained evident: cost of revenue rose 10.6%, below topline growth, reducing its share of revenue (excluding share-based compensation) to 30.1% from 31.1%. Selling and marketing expenses increased 16.4% to RMB 1.69 billion, reflecting higher promotional spending, while administrative expenses climbed 6.3% to RMB 326.83 million.

User metrics were broadly stable. Average monthly paying users (MPUs) held at 46.4 million. Annual paying users (APUs) for the twelve months ended 31 March 2026 edged up 2.7% to 253.9 million, and the twelve-month accumulated number of travellers served grew 4.5% to 2.05 billion.

Operating cash flow strengthened to RMB 1.47 billion, up sharply from RMB 373.28 million a year earlier. After investment and financing outflows, cash and cash equivalents stood at RMB 6.08 billion at quarter-end, compared with RMB 6.51 billion at end-2025. Total assets were RMB 43.31 billion and total equity RMB 23.93 billion.

Management cited continued strength in China’s domestic travel market, expansion of higher-quality accommodation offerings and value-added transportation services as key growth drivers. The company reiterated its focus on mass-market penetration, AI-enabled product innovation and accelerated hotel-management expansion to sustain momentum through 2026.