Trip.com Group, China’s leading travel management platform, posted stronger-than-expected earnings last quarter, with parts of its business surpassing pre-pandemic levels as global travel rebounded.
The company reported a 69% surge in fourth-quarter net income, reaching 2.2 billion yuan (US$303.5 million), while revenue climbed 23% to 12.7 billion yuan, according to a Hong Kong stock exchange filing on Tuesday. For the full year, revenue grew 20% to 53.4 billion yuan, with net earnings soaring 72% to 17.1 billion yuan.
Revenue for the quarter exceeded market expectations by 3.4%, surpassing Jefferies’ estimate by 3.9%.
Optimism for the Travel Industry
“With a promising market outlook, we are well-positioned to deliver outstanding travel services globally,” said CEO Jane Sun. “We are confident in our ability to create value for users and succeed with business partners through new initiatives.”
The Singapore-based company reported that outbound hotel and airline bookings reached 120% of pre-pandemic levels. Inbound travel bookings more than doubled, fueled by China’s efforts to boost tourism through visa-free entry programs.
Financial Highlights and Stock Performance
Trip.com announced a dividend of 30 US cents per share for 2024 and allocated US$400 million for a stock buyback program in 2025. As of December 31, the company held 90 billion yuan in cash and cash equivalents.
Despite the strong earnings report, Trip.com’s stock fell 11.9% to HK$462 in Hong Kong on Tuesday, following a 3.5% decline in its American depositary shares in New York. The drop came as Chinese tech stocks slumped after former U.S. President Donald Trump signed a national security memorandum on February 21, which could impose restrictions on U.S. investments in Chinese companies.
Tourism Recovery and Growth Potential
Still, Trip.com’s results signal renewed optimism for China’s tourism sector, which faced years of disruption due to stringent COVID-19 lockdowns. In response to declining tourist arrivals, the Chinese government eased visa restrictions in late 2023, introducing a 240-hour visa-free transit for eligible travelers and expanding its unilateral visa-free policy to additional countries. As a result, tourist arrivals rose 11% to 20 million in 2024.
“The travel market has demonstrated remarkable resilience in 2024, driven by travelers’ growing interest in exploration and cultural experiences,” said Trip.com Executive Chairman James Liang. “We expect another year of growth and success for the industry.”
Domestic Travel Boom
China saw a record 501 million domestic trips during the eight-day Lunar New Year holiday, with travelers spending over 677 billion yuan—both figures reflecting a 7% increase from the previous year, according to the Ministry of Culture and Tourism.
Tourist sentiment has improved, as evidenced by increased hotel bookings. According to JLL, premium hotels have largely recovered to 2019 levels, with destinations like Sanya on Hainan Island performing particularly well. Revenue per available room in Sanya was up 17.4% compared to pre-pandemic levels, followed by Xian (11%) and Chongqing (9.1%). In contrast, Beijing and Shanghai lagged behind 2019 levels.
Challenges in the Hotel Industry
However, challenges remain. “China’s hotel industry faced an oversupply in 2024, which has impacted overall performance,” said independent hotel consultant Zhao Huanyan. He noted that while inbound travel has increased, the effect on the broader market has been limited due to the persistent supply-demand imbalance.