Investment Rating - The report assigns a "BUY" rating for Trip.com Group (TCOM) with a target price of US$65.8, up from the previous target of US$49.0, indicating a potential upside of 17.9% from the current price of US$55.83 [3][12]. Core Insights - Trip.com Group reported a net revenue of RMB11.9 billion for Q1 2024, representing a year-over-year increase of 29.4%, which exceeded both the forecast and consensus estimates [2]. - The company is positioned to capitalize on globalization opportunities beyond the current pent-up demand in the travel industry, leveraging its one-stop shop business model and strong customer service capabilities [2][7]. - Management anticipates that international business will contribute over 20% of total revenue within the next 3-5 years, supported by a significant total addressable market in Asia that is 1.5 times that of China [7][8]. Summary by Sections Financial Performance - In Q1 2024, Trip.com achieved a non-GAAP operating income of RMB3.8 billion, surpassing forecasts due to better gross profit margins and controlled marketing expenses [2][10]. - The company expects revenue for Q2 2024 to reach RMB12.9 billion, reflecting a 15% year-over-year growth [2]. Market Position and Growth Strategy - Trip.com’s domestic travel bookings grew at a double-digit rate year-over-year in Q2 2024, outpacing the overall market [9]. - The international flight capacity rebounded to 70% of pre-pandemic levels, with Trip.com outperforming the industry by 20-30% in outbound travel bookings [8][9]. - The inbound travel revenue, which accounted for approximately 20% of Trip.com’s revenue in Q1 2024, is expected to further support revenue growth [7]. Operational Efficiency - The non-GAAP operating profit margin for Q1 2024 was 31.6%, significantly better than forecasted, driven by disciplined sales and marketing spending [2][10]. - The company aims to maintain efficient marketing expenditures focused on return on investment, which is expected to stabilize the operating profit margin despite a high base [2][10]. Future Projections - Revenue projections for 2024, 2025, and 2026 are RMB52.8 billion, RMB59.5 billion, and RMB65.8 billion respectively, with corresponding growth rates of 18.5%, 12.6%, and 10.6% [10][11]. - The gross profit margin is expected to remain strong at around 81.3% for 2024, with operating margins projected to improve to 26.2% [10][11].

Financial Data and Key Metrics Changes - Trip.com Group reported a net revenue of RMB 11.9 billion for Q1 2024, representing a 29% increase year-over-year and a 15% increase quarter-over-quarter [23] - Adjusted EBITDA was RMB 4 billion for Q1 2024, compared to RMB 2.8 billion in the same period last year, with an adjusted EBITDA margin of 33% [25] - Diluted earnings per ordinary share were RMB 6.38 or USD 0.88 for Q1 2024, with non-GAAP diluted earnings per ordinary share at RMB 6 or USD 0.83 [25] Business Line Data and Key Metrics Changes - Accommodation reservation revenue for Q1 was RMB 4.5 billion, a 29% increase year-over-year and a 15% increase quarter-over-quarter [23] - Transportation ticketing revenue reached RMB 5 billion, representing a 20% increase year-over-year and a 22% increase quarter-over-quarter [23] - Packaged-tour revenue surged to RMB 883 million, a 129% increase year-over-year and a 25% increase quarter-over-quarter [23] Market Data and Key Metrics Changes - The outbound travel market saw bookings fully recover to pre-pandemic levels during major holiday periods, with outbound hotel and air ticket bookings increasing by over 100% year-over-year [13][23] - Inbound travel bookings increased by 400% year-over-year, driven by visa-free policies and strong demand from key markets [16] - The domestic market showed robust growth, with hotel and air ticket bookings increasing by 20% to 30% year-over-year [12] Company Strategy and Development Direction - The company is focusing on expanding its user base in second- and third-tier cities in China and enhancing user acquisition and cross-selling ratios [29] - Trip.com aims to capture the growing inbound travel market in China, which is projected to be a multitrillion RMB opportunity [29] - The introduction of tailor-made products for the silver generation is expected to tap into a significant market opportunity valued at RMB 1 trillion [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of strong performance for the rest of 2024, citing a transition from pent-up demand to a more normalized demand environment [11] - The company anticipates continued strong demand across travel segments, despite potential challenges from declining hotel and air prices [26] - Management remains optimistic about the travel market's recovery, particularly in outbound travel, which is expected to reach 80% of pre-pandemic levels by year-end [41] Other Important Information - The company has introduced the Old Friends Club initiative to cater to the travel preferences of the silver generation, aiming to bridge the gap between peak and off-peak travel seasons [8] - Trip.com is committed to social responsibility, creating job opportunities and supporting local communities through strategic investments [21] Q&A Session Summary Question: What growth drivers should investors pay attention to? - Management highlighted the focus on expanding user base in lower-tier cities and the growth of outbound travel as key drivers [29] Question: Have you observed a decrease in hotel ADR and RevPAR? - Management confirmed a decline in domestic ADR influenced by increased outbound travel and improved hotel availability in lower-tier cities [33] Question: What was the business performance during the Labor Day holiday? - Management reported record high domestic and outbound travel bookings during the holiday, with outbound bookings surpassing 120% of 2019 levels [38] Question: What factors will impact the recovery of outbound travel? - Management noted visa applications and flight capacity as major factors influencing the recovery of outbound travel [42] Question: How does Trip.com plan to capture the inbound travel market? - Management emphasized the rich offerings of China and the introduction of free-visa policies to attract international travelers [47] Question: What is the contribution of inbound travel to Trip.com? - Inbound travel now contributes over 20% to overall revenues, reflecting significant growth [49]

Trip.com Group Limited (TCOM) reported splendid first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate and increasing on a year-over-year basis. The company surpassed its earnings estimates in each of the trailing four quarters.The results reflect solid growth trend in the company’s domestic and outbound travel demand in China on the back of a stabilized supply and further relaxation of visa requirements. This resulted in increased accommodation reservations and global b ...

Financial Performance - Trip.com reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and up from $0.45 per share a year ago, representing an earnings surprise of 33.87% [1] - The company posted revenues of $1.65 billion for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 2.25%, and an increase from $1.34 billion year-over-year [1] - Over the last four quarters, Trip.com has consistently surpassed consensus EPS and revenue estimates [1] Stock Performance - Trip.com shares have increased approximately 57.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 11.2% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $1.84 billion, and for the current fiscal year, it is $2.96 on revenues of $7.36 billion [4] - The estimate revisions trend for Trip.com is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [4] Industry Context - The Leisure and Recreation Services industry, to which Trip.com belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [5] - Vail Resorts, another company in the same industry, is expected to report quarterly earnings of $9.99 per share, reflecting a year-over-year increase of 22.1%, with revenues anticipated to be $1.31 billion, up 5.9% from the previous year [6]

SINGAPORE, May 20, 2024 /PRNewswire/ -- Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) ("Trip.com Group" or the "Company"), a leading one-stop travel service provider of accommodation reservation, transportation ticketing, packaged tours, and corporate travel management, today announced its unaudited financial results for the first quarter of 2024.Key Highlights for the First Quarter of 2024Both domestic and international businesses maintained robust growth momentum in the first quarter of 2024Domestic h ...

SINGAPORE, May 7, 2024 /PRNewswire/ -- Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961), a leading one-stop travel service provider of accommodation reservation, transportation ticketing, packaged tours and corporate travel management, will announce its financial results for the three months ended March 31, 2024 on Monday, May 20, 2024, U.S. Time, after the market closes. Trip.com Group's management team will host a conference call at 8:00 PM U.S. Eastern Time on May 20, 2024 (or 8:00 AM on May 21, 2024 in ...

Trip.com (TCOM) closed the latest trading day at $53.87, indicating a +1.07% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 1.03%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 1.19%.The the stock of travel services company has risen by 10.72% in the past month, leading the Consumer Discretionary sector's loss of 4.02% and the S&P 500's loss of 1.57%.The investment community will be closely monitoring the performance of Trip.com in its for ...

SINGAPORE, April 30, 2024 /PRNewswire/ -- Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) ("Trip.com Group" or the "Company"), a leading one-stop travel service provider of accommodation reservation, transportation ticketing, packaged tours, and corporate travel management, today announced that the Company has filed its annual report on Form 20-F that includes its audited financial statements for three years ended December 31, 2023 with the Securities and Exchange Commission on April 29, 2024, U.S. Easter ...

Business Operations - As of December 31, 2023, over 90% of total transaction orders were executed through mobile channels, with products and services available in 24 languages and 35 local currencies [277]. - The company has over 1.7 million global accommodation listings and offers flights from over 600 airlines, with a network of over 90,000 ecosystem partners as of December 31, 2023 [282]. - The transportation ticketing network covers over 220 countries and regions, with air ticket offerings from over 600 global airlines, covering over 3,400 airports [290][291]. - The company streamlined and optimized its offline stores, maintaining approximately 5,700 stores across about 300 cities in China as of December 31, 2023 [279]. - The company operates a one-stop travel platform integrating a comprehensive suite of travel products and services, enhancing user experience through AI capabilities and travel insights accumulated over 23 years [273][274]. - The company has established an open platform business model, allowing ecosystem partners to post their own offerings, thereby expanding business opportunities [281]. - The company provides 24/7 user support throughout the travel journey, ensuring a personalized and enjoyable experience for users [280]. - The company has been increasing its influence in target markets globally, focusing on personalized travel experiences for users [276]. - The company serves approximately 960,000 small and medium-sized enterprises and over 15,000 large enterprises, including over 300 Fortune 500 companies [298]. - The company operates four leading travel brands: Ctrip, Qunar, Trip.com, and Skyscanner, enhancing brand recognition in the travel sector [319]. - The company utilizes AI technologies for applications such as traffic forecasting and flight delay prediction, enhancing customer service and operational efficiency [311]. - The proprietary search and transaction engines can support hundreds of millions of queries per day, improving user experience on the platform [315]. - The rewards program allows users to accumulate membership points based on services purchased, promoting user loyalty [323]. - The company has established a travel safety center and a global travel SOS service, providing 24/7 emergency support for travelers [307][308]. - The company has a broad customer base, including ecosystem partners such as airlines, hotels, and various travel service providers [335]. Financial Performance - In 2023, the company generated approximately 39% of total revenues from accommodation reservations, 41% from transportation ticketing, 7% from packaged tours, 5% from corporate travel, and 8% from other products and services [424]. - The company's net revenues increased by 122% year-over-year in 2023, with net income rising by 632% compared to the previous year [437]. - The core online travel agency business achieved a record high in 2023, with a year-over-year increase in GMV of nearly 130% and a growth of about 30% compared to 2019 [437]. - Accommodation reservation revenue for 2023 was RMB17.3 billion (US$2.4 billion), representing 39% of total revenues [443]. - Transportation ticketing revenue for 2023 was RMB18.4 billion (US$2.6 billion), also representing 41% of total revenues [444]. - Packaged tour revenue for 2023 was RMB3.1 billion (US$442 million), showing significant growth from previous years [444]. - Corporate travel revenue increased from RMB1.1 billion in 2022 to RMB2.3 billion (US$317 million) in 2023, representing a growth of 109% [445]. - Revenue from other businesses rose from RMB2.5 billion in 2022 to RMB3.5 billion (US$488 million) in 2023, marking a 40% increase [446]. - Cost of revenues as a percentage of net revenues decreased from 23% in 2021 and 2022 to 18% in 2023 [447]. - Share-based compensation expense increased to RMB1.8 billion (US$258 million) in 2023, up from RMB1.2 billion in 2022 [448]. - Product development expenses as a percentage of net revenues decreased from 45% in 2021 to 27% in 2023 [448]. - Sales and marketing expenses remained stable at 21% of net revenues in both 2022 and 2023, down from 25% in 2021 [449]. - General and administrative expenses as a percentage of net revenues decreased from 15% in 2021 to 8% in 2023 [449]. - The effective income tax rate improved from -57% in 2021 to 16% in 2023 [450]. - Corporate travel services are recognized on a net basis after services are rendered, reflecting a shift in revenue recognition practices [445]. - The company anticipates continued growth in corporate travel and other business segments, driven by increased demand and market expansion strategies [445][446]. Regulatory Environment - The travel agency regulations in China require agencies to obtain licenses for outbound and domestic travel businesses from relevant authorities [355]. - Foreign investors can establish travel agencies in China, but are restricted from engaging in outbound tourism for mainland residents unless specified by the State Council [356]. - The Ministry of Culture and Tourism introduced measures to standardize online travel operations, mandating accurate service information and personal data protection [357]. - The air-ticketing business is regulated by the China Air Transport Association, which sets standards for sales agencies, including proper licensing and employee training [359]. - Online air-ticketing platforms are prohibited from bundling sales with other services by default and must display ancillary services explicitly [360]. - The PRC E-commerce Law imposes requirements on e-commerce operators to protect consumer rights and ensure fair trading practices [362]. - The PRC Consumer Protection Law mandates that business operators guarantee the quality and validity of goods and services sold [364]. - The PRC Data Security Law, effective September 2021, establishes a tiered system for data protection based on the importance of the data [372]. - Internet service providers face criminal penalties for failing to comply with information security obligations, including severe consequences from user information leakage [373]. - Recent regulations require data processing entities to apply for cybersecurity reviews if their operations could influence national security, with unclear parameters for implementation [374]. - The PRC Personal Information Protection Law, effective from November 2021, mandates compliance for processing personal information within China and for services provided to individuals in China [375]. - The Cybersecurity Review Measures, effective from February 2022, require cybersecurity reviews for internet platform operators with over one million users intending to pursue foreign listings [376]. - Security assessments for outbound data transfers are required if the data involves over 100,000 individuals' personal information or 10,000 individuals' sensitive personal information since January 1 of the previous year [377]. - The PRC Cybersecurity Law amendments proposed in September 2022 aim to enhance legal liability mechanisms for network operation security and personal information protection [378]. - The Administrative Measures on Data Security in Industry and Information Technology require data processors to regularly identify and file important data catalogs with local authorities [378]. - The PRC Anti-Monopoly Law amendment in June 2022 introduced a "safe harbor" for operators with market shares below a specific threshold, increasing penalties for violations [394]. - The Provisions on the Review of Concentrations of Undertakings issued in March 2023 clarify factors for determining control over other undertakings [394]. Sustainability Initiatives - Approximately 2,000 hotels have been selected as fulfilling the criteria for low-carbon hotel standards under the company's sustainability initiatives [338]. - The company is committed to promoting sustainable tourism and has launched initiatives like "Green Hotels" to encourage environmentally friendly practices among hotel partners [338]. - The company has established 28 country retreats across China as part of its rural tourism initiative, contributing to local income and talent development [340]. Market Competition - The company faces increasing competition in China's travel industry from both domestic and international players, necessitating a focus on brand recognition and user satisfaction [334]. - The company has a history of significant acquisitions, including Qunar in December 2015 and Skyscanner in December 2016, enhancing its market position [265]. - The company has not made any material acquisitions since 2020, focusing instead on evaluating strategic investments and acquisitions [337]. Intellectual Property - As of December 31, 2023, the company had over 1,550 patents registered in China, including over 600 invention patents and over 950 pending patent applications [330]. - The company owned over 1,700 registered trademarks and approximately 150 pending trademark applications in China, along with over 180 registered trademarks in various jurisdictions outside of China [330]. - The company has over 300 registered domain names in China and approximately 30 registered domain names outside China, ensuring full legal rights over these domains [332].

Trip.com (TCOM) closed the most recent trading day at $50.60, moving +0.36% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.02%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 2.03%.Coming into today, shares of the travel services company had gained 14.88% in the past month. In that same time, the Consumer Discretionary sector lost 6.35%, while the S&P 500 lost 3.15%.The investment community will be paying close attention to the earnings performance ...