Trip.com Group Limited will release its fiscal year 2025 Q3 earnings report on November 17 (before the US market opens). According to data from the Tiger International APP, Trip.com is expected to report total revenue of 18.16 billion RMB for Q3, representing a year-over-year growth of approximately 16%. Earnings per share (EPS) are projected to be $8.22, up approximately 19% year-over-year.
Review of Last Quarter
In the last quarter, Trip.com Group Limited achieved a revenue of 14.864 billion RMB, up approximately 16.38% year-over-year; the gross profit margin was around 81.01%; net profit attributable to shareholders was about 4.846 billion RMB, with a net profit margin of approximately 32.65%; and adjusted earnings per share were about 7.20 RMB, representing a year-over-year growth of approximately -0.69%. By business segment, accommodation booking revenue was about 6.225 billion RMB, transportation ticketing revenue was about 5.397 billion RMB, packaged tours revenue was about 1.079 billion RMB, corporate travel revenue was about 692 million RMB, and other revenues were about 1.471 billion RMB. The company achieved steady growth driven by supply expansion and the recovery of cross-border travel, maintaining a high-profit margin structure. The current main business highlight is the accommodation booking business, with revenue of about 6.225 billion RMB, accounting for approximately 42% of the total. It maintained year-over-year growth, with better customer order structure and synergies with high-end hotel resources, supporting a stable gross profit margin.
Outlook for This Quarter
Continuous Expansion of Accommodation and High-end Resources
The accommodation segment is expected to continue to be a core growth driver underpinned by the recovery in business travel and the Mid-Autumn Festival and National Day holidays, with order structure leaning towards high-end and vacation products, helping maintain a high gross profit margin. The platform strengthens user loyalty in high-ticket scenarios through increasing high-quality supply density and member rights.
Cross-selling strategies extending to destination experiences and value-added services will enhance the value of each order, supporting increased accommodation conversion and repurchase rates through content operations and local play resources integration.
Overseas accommodation recovery remains a significant growth point, with international hotel and cross-border independent travel demands gradually recovering, expected to maintain a steady recovery pace driven by leisure and visit friends and relatives scenarios, supporting the internationalization of the long-term revenue structure.
Role of Transportation Ticketing in the Recovery of Flight Routes and Supply-side Flexibility
International and regional flight frequencies are gradually recovering, with the continuous demand after the summer travel peak and the staggered effects of the Golden Week, supporting the resilience of the air and train ticket businesses, with order and price structures likely to continue the trend from the first half of the year.
The platform enhances product strength in medium- and long-haul flight routes and high-speed rail vacation routes, improving user experience and reducing attrition rates through flexible services like interconnected transportation and rescheduling guarantees, contributing to the scale of transportation ticketing.
On the cost side, optimizing the structure of direct sales and agency relations may slightly improve the gross profit structure of transportation ticketing, and high fuel surcharges and ticket prices for international routes will support profit quality if maintained.
Increased Penetration of Destination and Integrated Services
The synergy of packaged tours and corporate travel is strengthening, with integrated itinerary management and expense control tools attracting high-frequency business customers, bringing higher lifecycle value.
Destination play products are expanding supply in popular cities and vacation areas, enhancing the platform's penetration in the "stay-travel-play" chain through content-driven guides and membership points systems, boosting ARPU.
If cross-border visa facilitation and air rights are further released, destination and packaged vacation businesses may gain elasticity, becoming structural highlights before the arrival of the fourth quarter, positively impacting comprehensive revenue and profit margins.
Balancing Profit Quality and Cost Efficiency
The market expects this quarter's EBIT and adjusted EPS to grow year-over-year, indicating the company maintains cost efficiency while keeping investments; online marketing spending will focus more on ROI and converting organic traffic.
The expansion of the membership ecosystem and direct supply will help reduce customer acquisition costs and improve order certainty, stabilizing operating leverage.
Exchange rate fluctuations and cross-border recovery pace may still bring short-term disturbances, but the high-gross margin business structure gives the company some profit buffer.
Analyst Views
Many institutions are watching Trip.com's recovery slope in accommodation and transportation ticketing, as well as the incremental space of international business. Research reports generally believe that the current highlights are in the high-gross margin accommodation segment and the penetration of destination experiences. Regarding target prices, some institutions have maintained or slightly raised their ratings on the company in the past six months, focusing on stable revenue growth, resilient profit margins, continued international recovery, and enhanced membership ecosystem stickiness; however, some views highlight that the recovery pace of cross-border routes and fluctuations in macro consumption may affect short-term orders. Overall, there is a consensus favoring dual improvement in revenue and profit for this quarter.
This content is generated based on Tiger AI data and is for reference only.