OTA concept stocks broadly advanced during morning trading. At press time, Tongcheng Travel (00780) surged 5.45% to HK$22.25, while Trip.com Group-S (09961) climbed 3.49% to HK$507.50. The uptick follows JD.com's June 18 announcement of its entry into liquor and travel services with a "zero-commission policy for up to three years."

Guosen Securities observed that while JD's late-June market entry initially caused sector turbulence, high-star hotels maintain solid resource advantages and user barriers. The brokerage anticipates relatively stable subsidy levels and commission rates, alongside potentially stronger shareholder returns for industry leaders. Lower-tier hotel segments, more vulnerable to competitive pressures, have already seen price adjustments reflect these dynamics. Enhanced subsidy efficiency among market leaders and early platform price normalization provide buffers, rendering the overall impact manageable.

Market concerns about short-term quarterly performance disruptions due to OTA competition appear overblown, according to the analysis. Subsidies in internet platforms' instant retail and food delivery segments may divert competitive intensity from the liquor-travel sector. Crucially, the OTA industry's core focus remains resource integration and fulfillment services—requiring significant investments in business development and customer support teams. Given leaders' stronger inventory control over mid-to-high-tier hotels, short-term subsidy wars alone prove insufficient for capturing service-oriented customers sustainably.

Looking forward, robust summer travel demand coupled with easing price pressures position OTA valuations for gradual recovery. Industry leaders' tightened grip on premium hotel resources and improving operational efficiencies further support this positive outlook.