Trip.com Group Swings to a Quarterly Loss on a RMB5.2bn Antitrust Penalty — and Starts Loosening Its Grip on Hotels
Sarah
If you list hotels in China, the number to watch in Trip.com Group's second-quarter results is not the loss. It is the phrase "operational adjustments the Company implemented to align with evolving industry standards and compliance frameworks" — regulator-driven changes to how the platform distributes and ranks properties, now working their way into the P&L.
Trip.com Group (Nasdaq: TCOM; HKEX: 9961) reported unaudited results for the second quarter and first half of 2026 on 15 September.
The penalty
The quarter absorbed a RMB5.2 billion (US$763 million) anti-monopoly penalty from China's State Administration for Market Regulation (SAMR). That single charge pushed general and administrative expenses up 477% year-over-year to RMB6.3 billion (US$933 million). Stripped out, G&A would have risen 5% to RMB1.2 billion.
The result was a net loss of RMB2.4 billion (US$361 million), against net income of RMB4.9 billion in the same quarter of 2025. Without the penalty, the company says net income would have been RMB2.7 billion (US$402 million). Diluted loss per ADS was RMB3.89 (US$0.57); on a non-GAAP basis, which excludes the penalty, diluted earnings per ADS were RMB7.27 (US$1.07), up from RMB7.20 a year earlier.
The line items
- Total net revenue: RMB15.7 billion (US$2.3 billion), up 6% year-over-year but down 3% on the first quarter.
- Accommodation reservation: RMB6.6 billion (US$969 million), up 6% year-over-year — growth in reservations "partially offset by a contra-revenue imposed by" SAMR.
- Transportation ticketing: RMB5.4 billion (US$788 million), down 1% year-over-year and 12% on the quarter.
- Packaged tour: RMB1.2 billion (US$171 million), up 8%.
- Corporate travel: RMB771 million (US$114 million), up 11%.
- Adjusted EBITDA: RMB4.6 billion (US$673 million), down from RMB4.9 billion, a 29% margin.
- Sales and marketing: RMB3.8 billion (US$566 million), up 15% and now a quarter of revenue.
Cash, equivalents, restricted cash, short-term investments and held-to-maturity products stood at RMB100.5 billion (US$14.8 billion) at 30 June.
The international side is where the growth sits: revenue on the company's international platform rose more than 50% year-over-year, and inbound travel revenue grew at a high double-digit rate.
What changes for hotels
The remedies matter more than the fine. Reporting on Wednesday's earnings call, Skift says Trip.com Group is giving hotels and other suppliers greater control over commercial decisions, and is reworking how it distributes and ranks properties in China. CFO Xiaofan Wang told analysts: "In the near term, on our business operations side, as partners transition to the new upgrading model and market practices adjust, we expect some volatilities on our domestic performance."
That is an OTA telling investors to expect a softer domestic quarter because suppliers are getting more say. Executive Chairman James Liang framed the wider strategy as "Globalization and Great Quality, or G2," with proprietary AI applied "across every stage of the travel journey." CEO Jane Sun said the company sees "an opportunity to build a healthier ecosystem centered on value, experience, and service quality."
For a hotelier on the platform, the practical question is which commercial levers — rate parity, ranking inputs, promotional participation — actually move back into their hands, and how quickly. The company has not yet published that detail.