TRIP.COM(US:TCOM) Xin Lang Cai Jing·2026-01-20 00:25Core Viewpoint - The article discusses the ongoing investigation into Ctrip Group for alleged monopolistic practices, including raising commission rates and imposing unfair trading conditions on small businesses in the tourism sector [2][5][11]. Group 1: Allegations Against Ctrip - Ctrip has been accused of abusing its market dominance, with complaints from members of the Yunnan Province Tourism Homestay Industry Association about rising commission rates from 8%-10% to 12%-18% [2][5]. - The association reported that some homestays face total costs, including hidden promotional fees, reaching nearly 40%, leading to a dilemma of either cooperating with Ctrip and incurring losses or not cooperating and having no customers [2][5]. - Legal experts suggest that if Ctrip is found guilty, it may have to change its entire profit model, which could significantly impact its operations [3][11]. Group 2: Impact on Small Businesses - Small businesses, such as homestays, heavily rely on Ctrip for customer orders, with some reporting that over 90% of their bookings come from the platform [4][5]. - Business owners have described the pressure to comply with Ctrip's demands, including paying for advertising and participating in promotional schemes to maintain visibility on the platform [4][7]. - The hidden costs associated with Ctrip's services can lead to a situation where businesses are left with minimal profit margins, as evidenced by specific examples where platforms take significant cuts from the total booking fees [8][9]. Group 3: Market Position and Financials - Ctrip holds a dominant market share in the domestic tourism sector, with a reported 56% of the total transaction volume in 2024 [6]. - The company's operational profit for Q3 2025 was reported at 5.574 billion yuan, with a profit margin of 30%, although some profits were attributed to the disposal of certain investments [6][10]. - Ctrip's financial dealings extend beyond its platform, as it also collects substantial commissions from hotel groups, indicating a broader influence in the tourism industry [6][10]. Group 4: Regulatory and Legal Considerations - The investigation into Ctrip is based on the Anti-Monopoly Law, which could lead to penalties including fines and the requirement to cease illegal practices [10][11]. - Experts highlight that the focus should not only be on potential fines but also on how Ctrip may need to alter its business practices to comply with legal standards [10][11]. - The allegations against Ctrip include unfair pricing practices and imposing unreasonable trading conditions on small merchants, which could lead to significant changes in the online travel agency landscape [11].