Feng Huang Wang·2026-01-14 11:02Core Viewpoint - Ctrip has risen from the 15th position in 2021 to the 7th position in 2025 among internet companies, becoming one of the most profitable internet companies in China [1][5]. Group 1: Regulatory Investigation - On January 14, 2026, the State Administration for Market Regulation initiated an antitrust investigation against Ctrip for suspected abuse of market dominance, which has sparked significant reactions from consumers and industry insiders [1][2]. - The investigation has drawn parallels to previous cases involving Alibaba and Meituan, which faced substantial fines of 18.228 billion yuan and 3.442 billion yuan respectively, suggesting that Ctrip may also face similar penalties [1]. - Ctrip's stock price fell by 6.49% on the day of the announcement, reflecting market concerns over the potential impact of the investigation [1]. Group 2: Market Position and Financial Performance - Ctrip has established itself as a dominant player in the online travel market, holding over 56% of the transaction volume in China by the end of 2025, alongside its subsidiary Qunar [6]. - The company reported a net profit of 19.9 billion yuan in the third quarter of 2025, translating to a daily profit of approximately 216 million yuan, with a net profit margin of 32% [5]. - Ctrip's cumulative net profit for the first three quarters of 2025 reached 29 billion yuan, significantly surpassing the combined net profits of various segments in the A-share tourism sector [5]. Group 3: Industry Dynamics and Challenges - Many merchants in the travel industry have expressed frustration with Ctrip's market dominance, often feeling compelled to pay "traffic taxes" to maintain visibility on the platform [2][3]. - Ctrip's commission rates for merchants range from 12% to 15%, with additional promotional costs potentially raising the total to 20%-30%, which has led to significant profit pressure on these businesses [2]. - Despite attempts by new entrants like JD.com to disrupt the market, industry experts believe that Ctrip's established position makes it difficult for competitors to gain significant market share [6][7].