Trip.com Group, China’s largest online travel platform, expects revenue growth to slow in the current quarter as it navigates softer travel demand and an ongoing antitrust investigation that could result in a substantial financial penalty.
According to the South China Morning Post, which first reported the company’s latest earnings and outlook, Trip.com said second-quarter revenue is projected to increase between 3% and 8% year over year, marking what would be its slowest pace of quarterly growth since late 2022. The report, written by Richard Chen, also noted that the company warned investors it could face a “significant fine” stemming from an investigation by China’s State Administration for Market Regulation (SAMAR).
Trip.com reported first-quarter revenue of 16.2 billion yuan (US$2.4 billion), up 17% from a year earlier. However, net profit declined nearly 42% to 2.5 billion yuan, reflecting a more challenging operating environment despite continued revenue growth, according to the company’s earnings release as reported by the South China Morning Post.
During the company’s earnings call, Chief Financial Officer Cindy Wang attributed the moderation in travel demand to several external factors, including higher energy costs and geopolitical tensions. Those conditions have increased airfares, tightened airline capacity, and disrupted some international long-haul routes, resulting in changing travel patterns and softer booking trends, the newspaper reported.
Antitrust scrutiny remains a central concern
The financial outlook comes as Trip.com continues to face regulatory scrutiny over its business practices. China’s market regulator launched a formal antitrust investigation in January, alleging that the company may have abused its dominant market position under the country’s Anti-Monopoly Law. Authorities have not publicly detailed the specific allegations, but the investigation remains ongoing.
Related: China Launches Antitrust Probe Into Trip.com Over Market Practices
Trip.com has said it is cooperating with regulators and that its normal business operations continue.
Under China’s Anti-Monopoly Law, companies found to have abused a dominant market position can face fines ranging from 1% to 10% of their previous year’s revenue. Analysts have estimated that any eventual penalty could be substantial, although regulators have not indicated whether violations will ultimately be found or what sanctions, if any, may be imposed.
Competition policy has remained a focus in China’s platform economy
The Trip.com investigation reflects China’s continuing enforcement of competition law against major digital platforms. In recent years, regulators have pursued cases involving several large technology companies as part of broader efforts to address market concentration, exclusive business arrangements, and other practices viewed as limiting competition.
Previous enforcement actions have included multibillion-yuan penalties against major internet platforms, establishing a precedent for closer oversight of dominant digital businesses. While the Trip.com investigation is separate from those earlier cases, it illustrates that competition policy remains an active component of China’s regulatory framework for online platforms.
Trip.com occupies a leading position in China’s online travel sector through brands including Trip.com, Ctrip, Qunar and Skyscanner. Its scale has made the company an important player in both domestic and international travel bookings, while also placing its commercial practices under closer regulatory examination.
Source: SCMP