Trip.com (TCOM) Q3 2025: International Bookings Surge 60% as APAC Drives Expansion
Trip.com’s Q3 2025 revealed a pronounced acceleration in international expansion, with international bookings up 60% and APAC leading growth. The company is leveraging AI tools, diversified product offerings, and aggressive marketing to capture new traveler segments and geographies. With inbound and outbound travel both scaling, Trip.com is positioning itself as a global platform, but faces rising cost intensity and competitive headwinds as it pursues further share gains.
Summary
- International Acceleration: International bookings up 60% signal global scale ambitions are paying off.
- AI-Driven Personalization: AI-powered tools and content ecosystems are reshaping traveler engagement and operational efficiency.
- Margin Watch: Growing marketing and personnel costs highlight the need for disciplined investment as global expansion intensifies.
Performance Analysis
Trip.com’s Q3 topline grew 16% year-over-year, with international and outbound travel as the core engines. Accommodation reservations rose 18% year-over-year, fueled by outbound and international hotel demand, while transportation ticketing climbed 12%. Packaged tours and destination services, though smaller segments, demonstrated strong sequential growth, particularly as international offerings broadened. Corporate travel revenue increased 15%, reflecting adoption of managed travel services among enterprises expanding globally.
Adjusted EBITDA reached RMB 6.3 billion, up from RMB 5.7 billion a year ago. However, sales and marketing expenses grew 23% year-over-year and 26% sequentially, as Trip.com ramped up international campaigns and invested in market share. The company’s cash position remains robust at RMB 107.7 billion, providing ample liquidity for continued expansion. Notably, mobile now accounts for over 70% of total bookings, underscoring the platform’s ability to capture on-the-go demand and cross-sell services.
- Outbound Demand Strength: Outbound hotel and air bookings grew nearly 20% year-over-year, reaching 140% of pre-pandemic volumes.
- Inbound Momentum: Inbound travel bookings more than doubled, driven by relaxed visa policies and curated experiences like Taste of China.
- Segment Diversification: Destination services and packaged tours are being used to deepen customer engagement rather than drive profitability.
Overall, Trip.com’s growth is broad-based, but the cost of capturing international share is rising, and margin management will be a key focus heading into 2026.
Executive Commentary
"Travel is thriving and the travel spirit shows no signs of slowing down. In the third quarter, travel demand surged across markets, led by vibrant domestic travel in China and a steady rise in outbound journeys... This growing enthusiasm is mirrored in the performance of our AI-powered tools, such as Trip Planner, whose recent upgrade has fueled a 180% year-over-year surge in unique visits."
James Liang, Executive Chairman
"Our net revenue in Q3 increased by 16% year over year, reflecting strong demand across segments during peak travel season... Outbound travel continued to post solid growth in Q3, with our outbound hotel and air bookings growing by close to 20% from last year and reaching about 140% of 2019 volumes."
Jen Sam, Chief Executive Officer
Strategic Positioning
1. International and APAC Expansion
International bookings grew 60% year-over-year, with the Asia-Pacific (APAC) region as the largest contributor, up over 50%. Trip.com’s localization strategy, including tailored marketing and product adaptation, is strengthening brand presence in key APAC markets. Recognition as the best online travel agency in Asia and new market momentum in the Middle East and Europe support the company’s global ambitions.
2. AI as a Differentiator
AI-powered tools are at the heart of Trip.com’s user and operational strategy. The Trip Genie AI agent, now used in over 200 countries, saw user growth of more than 200% year-over-year. AI is enhancing search, personalizing recommendations, and improving customer service efficiency, while for hotel partners, AI content generation and communication tools are driving guest satisfaction and operational productivity.
3. Segment Diversification and Customer Cohorts
Trip.com is targeting both affluent seniors and younger travelers with tailored offerings. The Old Friends Club, focused on senior travelers, saw GMV rise over 70%, while revenue from younger traveler segments grew triple digits, supported by partnerships with live entertainment companies. This cohort-based approach is designed to drive both volume and loyalty across demographics.
4. Inbound Travel and Ecosystem Leverage
Inbound travel bookings grew over 100%, with expanded visa-free policies and curated experiences like Taste of China drawing international visitors. Trip.com’s comprehensive inventory, multi-language support, and 24-hour service are positioned as key competitive advantages, with inbound growth benefiting hotel, airline, and local destination partners.
5. Cost Discipline and Marketing ROI
Sales and marketing spend is rising, particularly in international markets. Management emphasizes disciplined investment, with ROI targets set for execution teams. The focus is on scaling direct mobile traffic, cross-selling, and loyalty to improve long-term efficiency, but short-term margin pressure is likely as global marketing intensifies.
Key Considerations
Trip.com’s Q3 2025 reflects a company in aggressive growth mode, balancing international expansion, AI investment, and segment diversification against margin and cost headwinds. Investors should consider the following:
- International Scale Up: International and APAC booking growth are now central to the business model, but require sustained investment to maintain momentum.
- AI Investment Payoff: AI is driving both user engagement and operational leverage, but the competitive advantage will depend on continued innovation and adoption.
- Marketing Efficiency: Elevated sales and marketing spend is necessary for share gains, but will test management’s discipline as global competition intensifies.
- Segment Cohorts: Targeted offerings for seniors and younger travelers are deepening engagement, but require ongoing product and partnership investment.
- Margin Management: Margin expansion will depend on balancing cost growth with operational scale and improved direct traffic conversion.
Risks
Trip.com faces intensifying competition from both global and regional online travel agencies, especially as it expands in APAC and Europe. Rising marketing and personnel costs could pressure margins if international share gains slow or if macroeconomic conditions weaken. Geopolitical tensions, such as those between Japan and China, could also shift travel flows and impact regional contributions. The company’s margin guidance remains cautious, reflecting the dynamic mix and evolving cost structure.
Forward Outlook
For Q4 2025, Trip.com signaled:
- Continued robust travel demand, particularly in international and APAC markets
- Increased marketing investment aligned with global holiday seasonality
For full-year 2025, management maintained a positive outlook:
- Focus on sustainable growth, disciplined investment, and long-term value creation
Management highlighted several factors that will shape results:
- AI innovation and platform enhancements to drive user engagement
- Expansion of inbound and outbound travel segments, leveraging policy tailwinds
Takeaways
Trip.com is executing a high-velocity international expansion, with AI and mobile as core levers, but must balance growth with cost discipline to sustain margins.
- International Growth Is Now Core: The company’s business model is increasingly global, with APAC and Europe as critical growth vectors.
- AI and Personalization Differentiate the Platform: AI tools are improving both user experience and partner productivity, supporting scale and loyalty.
- Margin Management Will Be Tested: As marketing and personnel costs rise, operational efficiency and direct mobile conversion will be key to long-term profitability.
Conclusion
Trip.com’s Q3 2025 results confirm its transformation into a global travel platform, with international bookings and new traveler segments driving growth. Margin discipline and continued AI innovation will be the levers to watch as the company navigates a competitive, cost-intensive expansion phase.
Industry Read-Through
Trip.com’s results underscore the resurgence of cross-border travel, with APAC and Europe as leading demand centers. AI-driven personalization and mobile-first booking are now baseline expectations for online travel agencies, raising the bar for both incumbents and new entrants. Rising marketing intensity and the need for differentiated customer cohorts signal a shift toward experience-centric travel, with platforms leveraging partnerships in entertainment and local experiences. Competitors must invest in both technology and regional adaptation to capture similar demand tailwinds, while margin management will be a universal challenge across the sector.