Q2 2026 Trip.com Group Ltd Earnings Call

September 16, 2026

Operator: Good day, and thank you for standing by. Welcome to Trip.com Group second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to our first speaker today, Michelle Qi, Senior IR Director. Please go ahead.

Operator: Good day and thank you for standing by. Welcome to Trip.com Group Q2 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference call is being recorded.

Speaker #2: Good day, and thank you for standing by. Welcome to Trip.com Group Second Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode.

Speaker #2: After the speaker's presentation, there will be a question-and-answer session. To ask a question, join the session. You will need to press star one-one on your telephone keypad.

Speaker #2: You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference call is being recorded.

Speaker #2: I would now like to hand the conference over to your first speaker today, Michelle Qi, Senior IR Director. Please go ahead.

Operator: I would now like to hand the conference over to our first speaker today, Michelle Qi, Senior IR Director. Please go ahead.

Speaker #3: Thank you. Good morning and good evening. Welcome to Trip.com Group's second quarter 2026 earnings conference call. Joining me today on the call are Mr. James Liang, Executive Chairman of the Board; Ms. Jane Sun, Chief Executive Officer; and Ms. Cindy Wang, Chief Financial Officer.

Michelle Qi: Thank you. Good morning and good evening. Welcome to Trip.com Group's second quarter of 2026 earnings conference call. Joining me today on the call are Mr. James Liang, Executive Chairman of the Board, Ms. Jane Sun, Chief Executive Officer, and Ms. Cindy Wang, Chief Financial Officer. During this call, we will discuss our future outlook and performance, which are forward-looking statements made under the Safe Harbor provision of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in Trip.com Group's public filings with the Securities and Exchange Commission. Trip.com Group does not undertake any obligation to update any forward-looking statement except as required under applicable law.

Michelle Qi: Thank you. Good morning and good evening. Welcome to Trip.com Group's Q2 of 2026 earnings conference call. Joining me today on the call are Mr. James Liang, Executive Chairman of the Board, Ms. Jane Sun, Chief Executive Officer, and Ms. Cindy Wang, Chief Financial Officer. During this call, we will discuss our future outlook and performance, which are forward-looking statements made under the Safe Harbor provision of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties.

Speaker #3: During this call, we will discuss our future outlook and performance, which are forward-looking statements made under the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995.

Speaker #3: Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in Trip.com Group's public filings with the Securities and Exchange Commission.

Michelle Qi: As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in Trip.com Group's public filings with the Securities and Exchange Commission. Trip.com Group does not undertake any obligation to update any forward-looking statement except as required under applicable law. James, Jane, and Cindy will share our strategy and business updates, operating highlights, and financial performance for the Q2 of 2026, as well as some outlook for the Q3 of 2026.

Speaker #3: Trip.com Group does not undertake any obligation to update any forward-looking statement except as required under applicable law. James, Jen, and Cindy will share strategy and business updates, operating highlights, and financial performance for the second quarter of 2026, as well as some outlook for the third quarter of 2026.

Michelle Qi: James, Jane, and Cindy will share our strategy and business updates, operating highlights, and financial performance for the second quarter of 2026, as well as some outlook for the third quarter of 2026. After the prepared remarks, we will have the Q&A session. With that, I will turn the call over to James. James, please.

Speaker #3: After the prepared remarks, we will have the Q&A session. With that, I will turn the call over to James. James, please.

Michelle Qi: After the prepared remarks, we will have the Q&A session. With that, I will turn the call over to James. James, please.

Speaker #4: Thank you, Michelle, and thanks, everyone, for joining us today. The global travel industry faced a more challenging operating environment this quarter. Macroeconomic and geopolitical uncertainties continued to create volatility across markets. Elevated fuel prices and airfares increased the cost of travel and weighed more heavily on longer-haul demand.

James Liang: Thank you, Michelle, and thanks everyone for joining us today. The global travel industry faced a more challenging operating environment this quarter. Macroeconomic and geopolitical uncertainties continued to create volatility across markets. Elevated fuel prices and airfares increased the cost of travel and weighed more heavily on longer haul demand. Despite these pressures, travelers' appetite for exploration remained resilient, with demand shifting towards shorter haul destinations. We believe these near-term dynamics do not change the long-term trajectory of global travel. Travel remains a fundamental consumer need, and global connectivity continues to expand as travelers seek higher quality, more personalized experiences. Against this backdrop, our strategic priorities remain clear. Globalization and great quality continue to anchor our long-term growth. Globalization represents a significant structural opportunity. We are particularly bullish on the long-term potential of inbound travel. China offers an unparalleled breadth of destinations, culture, and experiences.

Speaker #4: Despite these pressures, travelers' appetite for exploration remained resilient. With demand shifting toward shorter-haul destinations, we believe these near-term dynamics do not change the long-term trajectory of global travel.

Speaker #4: Travel remains a fundamental consumer need, and global connectivity continues to expand as travelers seek higher quality, more personalized experiences. Against this backdrop, our strategic priorities remain clear: globalization and great quality continue to anchor our long-term growth.

James Liang: Travel remains a fundamental consumer need, and global connectivity continues to expand as travelers seek higher quality, more personalized experiences. Against this backdrop, our strategic priorities remain clear. Globalization and great quality continue to anchor our long-term growth. Globalization represents a significant structural opportunity. We are particularly bullish on the long-term potential of inbound travel. China offers an unparalleled breadth of destinations, culture, and experiences.

Speaker #4: Globalization represents a significant structural opportunity. We are particularly bullish on the long-term potential of inbound travel. China offers an unparalleled breadth of destinations, culture, and experiences.

Speaker #4: We believe inbound travel remains well below its full potential and is entering an important phase of structural growth. To capture this opportunity, we have committed to accelerating the development of inbound travel.

James Liang: We believe inbound travel remains well below its full potential and is entering an important phase of structural growth. To capture this opportunity, we have committed to accelerating the development of inbound travel. We will invest to build a stronger inbound travel ecosystem, empower local partners, and make the country more accessible to travelers around the world. Capturing this opportunity requires more than expanding our global reach. It also requires us to compete on the quality of the products and experiences we deliver. This is the second pillar of our G2 strategy, great quality. We believe travel growth will increasingly be defined by differentiated products, superior service, and compelling value for travelers and partners. These are capabilities we have built over many years, and they will become increasingly important as consumer expectations continue to evolve.

Speaker #4: We will invest to build a stronger inbound travel ecosystem, empower local partners, and make the country more accessible to travelers around the world. Capturing this opportunity requires more than expanding our global reach.

Speaker #4: It also requires us to compete on the quality of the products and experiences we deliver. This is the second pillar of our G2 strategy: great quality.

James Liang: This is the second pillar of our G2 strategy, great quality. We believe travel growth will increasingly be defined by differentiated products, superior service, and compelling value for travelers and partners. These are capabilities we have built over many years, and they will become increasingly important as consumer expectations continue to evolve. We believe the industry is moving in the same direction, with competition increasingly centered on quality, value, and experience. This evolution is closely aligned with the direction of our G2 strategy.

Speaker #4: We believe travel growth will increasingly be defined by differentiated products, superior service, and compelling value for travelers and partners. These are capabilities we have built over many years, and they will become increasingly important as consumer expectations continue to evolve.

Speaker #4: We believe the industry is moving in the same direction, with competition increasingly centered on quality, value, and experience. This evolution is closely aligned with the direction of our Q2 strategy.

James Liang: We believe the industry is moving in the same direction, with competition increasingly centered on quality, value, and experience. This evolution is closely aligned with the direction of our G2 strategy. Technology is also reshaping the travel experience, with AI rapidly transforming how consumers discover, plan, and experience travel. We are advancing our proprietary AI capabilities across the travel journey, making travel more personalized, seamless, and valuable. We are seeing growing evidence that AI is becoming an integral part of the travel journey. AI-assisted orders through Trip Genie on Trip.com increased by approximately 400% year-over-year, and nearly 60% of Trip Genie interactions are now booking related, spanning hotels, flights, and attractions. These trends demonstrate that travelers are increasingly relying on AI, not only for inspiration but also to make and fulfill travel decisions. Importantly, we believe AI will make the underlying infrastructure of travel even more valuable.

Speaker #4: Technology is also reshaping the travel experience. With AI rapidly transforming how consumers discover, plan, and experience travel, we are advancing our proprietary AI capabilities across the travel journey, making travel more personalized, seamless, and valuable.

James Liang: Technology is also reshaping the travel experience, with AI rapidly transforming how consumers discover, plan, and experience travel. We are advancing our proprietary AI capabilities across the travel journey, making travel more personalized, seamless, and valuable. We are seeing growing evidence that AI is becoming an integral part of the travel journey. AI-assisted orders through Trip Genie on Trip.com increased by approximately 400% year-over-year, and nearly 60% of Trip Genie interactions are now booking related, spanning hotels, flights, and attractions.

Speaker #4: We are seeing growing evidence that AI is becoming an integral part of the travel journey. AI-assisted orders through TripGenie on Trip.com increased by approximately 400% year-over-year, and nearly 60% of TripGenie interactions are now booking-related, spanning hotels, flights, and attractions.

Speaker #4: These trends demonstrate that travelers are increasingly relying on AI, not only for inspiration but also to make and fulfill travel decisions. Importantly, we believe AI will make the underlying infrastructure of travel even more valuable.

James Liang: These trends demonstrate that travelers are increasingly relying on AI, not only for inspiration but also to make and fulfill travel decisions. Importantly, we believe AI will make the underlying infrastructure of travel even more valuable. AI may transform how travel is discovered, but it does not eliminate the complexity of delivering travel. Every trip still depends on high quality supply, trusted information, real-time availability and pricing, transaction infrastructure, fulfillment, and reliable service.

Speaker #4: AI may transform how travel is discovered, but it does not eliminate the complexity of delivering travel. Every trip still depends on high-quality supply, trusted information, real-time availability and pricing, transaction infrastructure, fulfillment, and reliable service.

James Liang: AI may transform how travel is discovered, but it does not eliminate the complexity of delivering travel. Every trip still depends on high quality supply, trusted information, real-time availability and pricing, transaction infrastructure, fulfillment, and reliable service. These capabilities are built on deep industry relationships, technology, and operational expertise, and are difficult to replicate. Our longstanding investments in these capabilities position us well for this next phase. We will continue to combine the power of AI with our global travel infrastructure, making travel easier and better for consumers and creating greater value for our partners. Looking ahead, our confidence in the long-term opportunity has never been stronger. We are excited about this next chapter and remain firmly focused on building a stronger, more innovative, and more valuable global travel platform for travelers and partners around the world. With that, I will turn the call over to Jane for operational highlights.

Speaker #4: These capabilities are built on deep industry relationships, technology, and operational expertise, and are difficult to replicate. Our long-standing investments in these capabilities position us well for this next phase.

James Liang: These capabilities are built on deep industry relationships, technology, and operational expertise, and are difficult to replicate. Our longstanding investments in these capabilities position us well for this next phase. We will continue to combine the power of AI with our global travel infrastructure, making travel easier and better for consumers and creating greater value for our partners. Looking ahead, our confidence in the long-term opportunity has never been stronger.

Speaker #4: We will continue to combine the power of AI with our global travel infrastructure, making travel easier and better for consumers, and creating greater value for our partners.

Speaker #4: Looking ahead, our confidence in the long-term opportunity has never been stronger. We are excited about this next chapter and remain firmly focused on building a stronger, more innovative, and more valuable global travel platform for travelers and partners around the world.

James Liang: We are excited about this next chapter and remain firmly focused on building a stronger, more innovative, and more valuable global travel platform for travelers and partners around the world. With that, I will turn the call over to Jane for operational highlights.

Speaker #4: With that, I will turn the call over to Jane for operational highlights.

Speaker #3: Thank you, James. Good morning, everyone. For the second quarter of 2026, our group net revenue totaled RMB 15.7 billion. Despite a more complex operating environment, Trip.com Group continued to demonstrate resilience in the second quarter.

Jane Sun: Thank you, James. Good morning, everyone. For the second quarter of 2026, our group net revenue totaled RMB 15.7 billion. Despite a more complex operating environment, Trip.com Group continues to demonstrate resilience in the second quarter. Our international businesses continue to grow strongly with inbound and world-to-world travel increasingly contributing to our overall momentum. Inbound travel continued to be one of our fastest growing businesses in the second quarter, with revenue increasing high double digits year-over-year. APAC remains our core source market, supported by frequent travelers from markets such as Korea and Southeast Asia. At the same time, we are seeing particularly strong seasonal growth from Europe and the Americas during key holiday periods. Traveler behavior is also evolving. They are venturing beyond traditional Eastern coastal destinations and increasingly exploring central and western part of the country.

Jane Sun: Thank you, James. Good morning, everyone. For the Q2 of 2026, our group net revenue totaled RMB 15.7 billion. Despite a more complex operating environment, Trip.com Group continues to demonstrate resilience in the Q2. Our international businesses continue to grow strongly with inbound and world-to-world travel increasingly contributing to our overall momentum. Inbound travel continued to be one of our fastest growing businesses in the Q2, with revenue increasing high double digits year-over-year.

Speaker #3: Our international businesses continue to grow strongly, with inbound and world-to-world travel increasingly contributing to our overall momentum. Inbound travel continued to be one of our fastest-growing businesses in the second quarter, with revenue increasing by high double digits year over year.

Speaker #3: APAC remains our core source market, supported by frequent travelers from markets such as Korea and Southeast Asia. At the same time, we are seeing particularly strong seasonal growth from Europe and the Americas during key holiday periods.

Jane Sun: APAC remains our core source market, supported by frequent travelers from markets such as Korea and Southeast Asia. At the same time, we are seeing particularly strong seasonal growth from Europe and the Americas during key holiday periods. Traveler behavior is also evolving. They are venturing beyond traditional Eastern coastal destinations and increasingly exploring central and western part of the country.

Speaker #3: Traveler behavior is also evolving. They are venturing beyond traditional eastern coastal destinations and increasingly exploring the central and western parts of the country. They are also shifting from traditional sightseeing and landmark visits toward more immersive cultural experiences, centered around local cuisine, traditional culture, and intangible cultural heritage.

Jane Sun: They are also shifting from traditional sightseeing and landmark visits towards more immersive cultural experiences centered around local cuisine, traditional culture, and intangible cultural heritage. We are also seeing growing demand for family travel from key source markets, particularly during holidays and school breaks. At the same time, international events are creating additional opportunities to drive inbound travel. Events such as the Canton Fair in Guangzhou and our Envision Global Partner Conference provide natural opportunities for international visitors to extend business trips into leisure travel. To capture these opportunities, we are working closely with local partners and destinations to improve international visibility, strengthen multilingual services, and better serve overseas travelers. We are committed to supporting the development of inbound travel with an ambition to serve 200 million inbound travelers over the next five years.

Speaker #3: We are also seeing growing demand for family travel from key source markets, particularly during holidays and school breaks. At the same time, international events are creating additional opportunities to drive inbound travel.

Speaker #3: Events such as the Canton Fair in Guangzhou and our Envision Global Partner Conference provide natural opportunities for international visitors to extend business trips into leisure travel.

Jane Sun: Events such as the Canton Fair in Guangzhou and our Envision Global Partner Conference provide natural opportunities for international visitors to extend business trips into leisure travel. To capture these opportunities, we are working closely with local partners and destinations to improve international visibility, strengthen multilingual services, and better serve overseas travelers. We are committed to supporting the development of inbound travel with an ambition to serve 200 million inbound travelers over the next five years.

Speaker #3: To capture these opportunities, we are working closely with local partners and destinations to improve international visibility, strengthen multilingual services, and better serve overseas travelers.

Speaker #3: We are committed to supporting the development of inbound travel, with an ambition to serve 200 million inbound travelers over the next five years. Our goal is to bring more destinations, experiences, and local businesses into the global tourism ecosystem, and capture the next phase of inbound travel growth.

Jane Sun: Our goal is to bring more destinations, experiences, and local businesses into the global tourism ecosystem and capture the next phase of inbound travel growth. On the international front, global travel is increasingly becoming a structural growth engine for our platform, powered by expanding international supply and growing demand from travelers around the world. During the quarter, revenue on our international OTA platform increased over 50% year-over-year, supported by higher transaction value and a favorable mix, despite elevated fuel prices and airfares weighing on travel demand. Importantly, this growth is increasingly driven by higher quality and more personalized travel demand. In H1 2026, first and business class flight bookings on Trip.com increased more than 70% year-over-year. Customized tour bookings where travelers can work directly with a travel expert to design a trip around their specific needs increased 600%.

Speaker #3: On the international front, global travel is increasingly becoming a structural growth engine for our platform, powered by expanding international supply and growing demand from travelers around the world.

Speaker #3: During the quarter, revenue on our international OTA platform increased over 50% year over year, supported by higher transaction value and a favorable mix, despite elevated fuel prices and airfares weighing on travel demand.

Jane Sun: During the quarter, revenue on our international OTA platform increased over 50% year-over-year, supported by higher transaction value and a favorable mix, despite elevated fuel prices and airfares weighing on travel demand. Importantly, this growth is increasingly driven by higher quality and more personalized travel demand. In H1 2026, first and business class flight bookings on Trip.com increased more than 70% year-over-year. Customized tour bookings where travelers can work directly with a travel expert to design a trip around their specific needs increased 600%.

Speaker #3: Importantly, this growth is increasingly driven by higher-quality and more personalized travel demand. In the first half of 2026, first- and business-class flight bookings on Trip.com increased by more than 70% year over year.

Speaker #3: Customized tour bookings, where travelers can work directly with a travel expert to design a trip around their specific needs, increased by 600%. These trends point to growing demand for premium travel options, greater personalization, and unique experiences.

Jane Sun: These trends point to growing demand for premium travel options, greater personalization, and unique experiences. We are continuing to strengthen our presence across key international markets and expanding our supply, localized products, and service capabilities globally. More importantly, the composition of this growth reflects the increasing diversity of our platform. We are increasingly enabling travelers from around the world to discover destinations globally. This creates a significantly larger addressable market and provides a strong foundation for the next phase of our global growth. Turning to outbound travel, demand remains resilient in the second quarter, although travelers continued to be selective amid a more complex macro environment. Travel intent remained healthy, with holidays and major events, including sporting events and entertainment, continuing to drive meaningful travel demand. At the same time, higher fuel prices and airfares weighed on overall outbound growth.

Speaker #3: We are continuing to strengthen our presence across key international markets and expanding our supply, localized products, and service capabilities globally. More importantly, the composition of this growth reflects the increasing diversity of our platform.

Speaker #3: We are increasingly enabling travelers from around the world to discover destinations globally. This creates a significantly larger addressable market and provides a strong foundation for the next phase of our global growth.

Jane Sun: This creates a significantly larger addressable market and provides a strong foundation for the next phase of our global growth. Turning to outbound travel, demand remains resilient in the Q2, although travelers continued to be selective amid a more complex macro environment. Travel intent remained healthy, with holidays and major events, including sporting events and entertainment, continuing to drive meaningful travel demand. At the same time, higher fuel prices and airfares weighed on overall outbound growth.

Speaker #3: Turning to outbound travel, demand remained resilient in the second quarter, although travelers continued to be selective amid a more complex macro environment. Travel intent remained healthy, with holidays and major events, including sporting events and entertainment, continuing to drive meaningful travel demand.

Speaker #3: At the same time, higher fuel prices and airfares weighed on overall outbound growth. We are seeing travelers adjust their destination preferences in response to higher travel costs, with short-haul and visa-free destinations capturing a larger portion of outbound demand.

Jane Sun: We are seeing travelers adjust their destination preferences in response to higher travel costs, with short-haul and visa-free destinations capturing a larger portion of outbound demand. Travelers have also been responsive to changes in airfare, adjusting their destinations and travel plans as prices fluctuate. We view these dynamics as primarily cyclical rather than structural. As these temporary cost pressures ease, we believe outbound demand has the potential to return toward its underlying growth trajectory. Turning to domestic travel, demand remained robust in the second quarter, supported by a series of holidays and the continued rollout of spring break programs. The Qingming, May Day, and Dragon Boat Festival holidays each generated strong travel demands, and spring break is creating additional travel occasions for families. In the spring break pilot cities, family travel bookings and spending both increasing more than 300% year-over-year, approximately five times the growth rate of non-family travelers.

Speaker #3: Travelers have also been responsive to changes in airfare, adjusting their destination and travel plans as prices fluctuate. We view these dynamics as primarily cyclical rather than structural.

Speaker #3: As these temporary cost pressures ease, we believe outbound demand has the potential to return toward its underlying growth trajectory. Turning to domestic travel, demand remained robust in the second quarter, supported by a series of holidays and a continued rollout of spring break programs.

Jane Sun: Turning to domestic travel, demand remained robust in the Q2, supported by a series of holidays and the continued rollout of spring break programs. The Qingming, May Day, and Dragon Boat Festival holidays each generated strong travel demands, and spring break is creating additional travel occasions for families. In the spring break pilot cities, family travel bookings and spending both increasing more than 300% year-over-year, approximately five times the growth rate of non-family travelers.

Speaker #3: The Qingming, May Day, and Dragon Boat Festival holidays each generated strong travel demand, and spring break is creating additional travel occasions for families. In the spring break pilot cities, family travel bookings and spending both increased by more than 300% year over year—approximately five times the growth rate of non-family travelers.

Speaker #3: Overall, bookings in these cities increased nearly 150%, with spending up nearly 200%. We are also seeing a shift in where and how people travel. Less traditional, lower-density destinations are growing faster than major tourist attractions. Short-haul trips, city breaks, rural leisure, and educational experiences are becoming increasingly popular.

Jane Sun: Overall, bookings in these cities increased to nearly 150%, with spending up nearly 200%. We are also seeing a shift in where and how people travel. Less traditional, lower-density destinations are growing faster than major tourist attractions. Short-haul trips, city breaks, rural leisure, and educational experiences are becoming increasingly popular. Travelers are also moving beyond single-attraction sightseeing toward more immersive experiences that combine tourism with dining, accommodation, transportation, culture, and other local offerings. These trends are broadening the addressable opportunity for our platform and creating more ways for travelers to discover and engage with local destinations and businesses. Entertainment is increasingly becoming a driver of travel demand. In Q2, growth bookings for our entertainment business increased over 80% year-on-year. Concerts, sporting events, and other live entertainment are becoming important reasons to travel.

Speaker #3: Travelers are also moving beyond single-attraction sightseeing toward more immersive experiences that combine tourism with dining, accommodation, transportation, culture, and other local offerings. These trends are broadening the addressable opportunity for our platform and creating more ways for travelers to discover and engage with local destinations and businesses.

Jane Sun: These trends are broadening the addressable opportunity for our platform and creating more ways for travelers to discover and engage with local destinations and businesses. Entertainment is increasingly becoming a driver of travel demand. In Q2, growth bookings for our entertainment business increased over 80% year-on-year. Concerts, sporting events, and other live entertainment are becoming important reasons to travel. In H1 2026, 7 out of 10 event tickets booked on our platform were associated with cross-city travel.

Speaker #3: Entertainment is increasingly becoming a driver of travel demand. In the second quarter, gross bookings for our entertainment business increased over 80% year on year.

Speaker #3: Concerts, sporting events, and other live entertainment are becoming important reasons to travel. In the first half of 2026, 7 out of 10 event tickets booked on our platform were associated with cross-city travel.

Jane Sun: In H1 2026, 7 out of 10 event tickets booked on our platform were associated with cross-city travel. More than one-third of travelers stayed an additional night for an event, and hotel bookings in destination cities increased multiple times during major events. The impact extends beyond the event itself, driving demand across accommodation, transportation, dining, and other local consumption. Entertainment is also helping cities strengthen their appeal as content destinations. Unlike traditional sightseeing resources, concerts, sporting events, and other live experiences have defined dates and strong fan appeal, making them powerful catalysts for cross-city travel and local consumption. In H1 2026, entertainment-related spending in cities such as Suzhou, Chengdu, and Zhengzhou increased over 200% year-over-year. Finally, we are continuing to evolve our partnership model to support healthier competition and sustainable growth across the travel industry.

Speaker #3: More than one-third of travelers stayed an additional night for an event, and hotel bookings in destination cities increased multiple times during major events. The impact extends beyond the event itself, driving demand across accommodation, transportation, dining, and other local consumption.

Jane Sun: More than one-third of travelers stayed an additional night for an event, and hotel bookings in destination cities increased multiple times during major events. The impact extends beyond the event itself, driving demand across accommodation, transportation, dining, and other local consumption. Entertainment is also helping cities strengthen their appeal as content destinations.

Speaker #3: Entertainment is also helping cities strengthen their appeal as content destinations. Unlike traditional sightseeing resources, concerts, sporting events, and other live experiences have defined dates and strong fan appeal, making them powerful catalysts for cross-city travel and local consumption.

Jane Sun: Unlike traditional sightseeing resources, concerts, sporting events, and other live experiences have defined dates and strong fan appeal, making them powerful catalysts for cross-city travel and local consumption. In H1 2026, entertainment-related spending in cities such as Suzhou, Chengdu, and Zhengzhou increased over 200% year-over-year. Finally, we are continuing to evolve our partnership model to support healthier competition and sustainable growth across the travel industry.

Speaker #3: In the first half of 2026, entertainment-related spending in cities such as Suzhou, Chengdu, and Zhengzhou increased by over 200% year-over-year. Finally, we are continuing to evolve our partnership model to support healthier competition and sustainable growth across the travel industry.

Speaker #3: In July, we received the administrative decision issued by the State Administration for Market Regulation of the People's Republic of China. We accept the decision and are moving forward with the implementation of the requirements set forth by the regulator.

Jane Sun: In July, we received the administration issued by the State Administration for Market Regulation of the People's Republic of China. We accept the decision and are moving forward with the implementation of the requirements set forth by the regulator. We appreciate the guidance provided by the SAMR and are using this process to further strengthen our operating model and support the long-term development of the travel industry. As part of our rectification measures, we are discontinuing our tier 1 distribution program and transitioning partners to a new multi-tiered framework, giving them more choices in how they work with us and creating opportunities for shared growth. At the same time, we are refining our pricing ecosystem by discontinuing the tier 2 distribution program and giving partners greater autonomy in their commercial decisions. These changes allow competition to focus more on service quality, product differentiation, customer experience, and overall performance.

Speaker #3: We appreciate the guidance provided by the SAMR and are using this process to further strengthen our operating model and support the long-term development of the travel industry.

Speaker #3: As part of our rectification measures, we are discontinuing our tier-one distribution program and transitioning partners to a new multi-tiered framework, giving them more choices in how they work with us and creating opportunities for shared growth.

Jane Sun: As part of our rectification measures, we are discontinuing our tier 1 distribution program and transitioning partners to a new multi-tiered framework, giving them more choices in how they work with us and creating opportunities for shared growth. At the same time, we are refining our pricing ecosystem by discontinuing the tier 2 distribution program and giving partners greater autonomy in their commercial decisions. These changes allow competition to focus more on service quality, product differentiation, customer experience, and overall performance.

Speaker #3: At the same time, we are refining our pricing ecosystem by discontinuing the Tier-2 distribution program and giving partners greater autonomy in their commercial decisions.

Speaker #3: These changes allow competition to focus more on service quality, product differentiation, customer experience, and overall performance. Beyond these changes, we are strengthening partner enablement.

Jane Sun: Beyond these changes, we are strengthening partner enablement. We are simplifying platform rules and promotional processes to reduce operational complexity and investing in data, technology, and international marketing to help partners improve service quality and reach new customers. We have also updated our hotel ranking algorithms to place greater weight on genuine service and lasting guest satisfaction. We also remain committed to enhancing consumer protection. We continue to strengthen data security and personal information protection and ensure that our technology and algorithms are developed and applied responsibly. We are committed to providing transparent, trustworthy services and continuously improving the user experience based on consumer feedback. Together, these efforts will help create a healthier competitive environment where partners can compete on quality and differentiation, consumers enjoy better experiences, and the industry develops on a more sustainable foundation.

Speaker #3: We are simplifying platform rules and promotional processes to reduce operational complexity, and investing in data, technology, and international marketing to help partners improve service quality and reach new customers.

Speaker #3: We have also updated our hotel ranking algorithms to place greater weight on genuine service and lasting guest satisfaction. We also remain committed to enhancing consumer protection.

Speaker #3: We continue to strengthen data security and personal information protection, and ensure that our technology and algorithms are developed and applied responsibly. We are committed to providing transparent, trustworthy services and continuously improving the user experience based on consumer feedback.

Jane Sun: We continue to strengthen data security and personal information protection and ensure that our technology and algorithms are developed and applied responsibly. We are committed to providing transparent, trustworthy services and continuously improving the user experience based on consumer feedback. Together, these efforts will help create a healthier competitive environment where partners can compete on quality and differentiation, consumers enjoy better experiences, and the industry develops on a more sustainable foundation.

Speaker #3: Together, these efforts will help create a healthier competitive environment where partners can compete on quality and differentiation. Consumers enjoy better experiences, and the industry develops on a more sustainable foundation.

Speaker #3: Looking ahead, we will stay focused on execution, build stronger global capabilities, and continue investing for the next phase of sustainable growth. With that, I will now turn the call over to Cindy.

Jane Sun: Looking ahead, we will stay focused on execution, build stronger global capabilities, and continue investing for the next phase of sustainable growth. With that, I will now turn the call over to Cindy.

Speaker #1: Thanks, Jane. Good morning, everyone. For the second quarter of 2026, Trip.com Group reported total net revenues of RMB 15.7 billion, representing a 6% increase from the same period last year.

Cindy Wang: Thanks, Jane. Good morning, everyone. For the second quarter of 2026, Trip.com Group reported total net revenues of RMB 15.7 billion, representing a 6% increase from the same period last year. This was primarily driven by softer demand across markets, elevated fuel prices and geopolitical tensions, as well as operational adjustments related to industry standards and compliance. These factors were partially offset by strong performance from our international OTA platform. Package tour revenue for the second quarter was RMB 1.2 billion, representing an 8% increase year-over-year. This was mainly supported by strong growth on our international OTA platform and continued momentum in customized tours across markets, as travelers increasingly sought more personalized experiences. Corporate travel revenue for the second quarter was RMB 771 million, representing an 11% increase year-over-year. This reflects the continued penetration of our managed corporate travel services among corporate clients.

Cindy Wang: Thanks, Jane. Good morning, everyone. For the Q2 of 2026, Trip.com Group reported total net revenues of RMB 15.7 billion, representing a 6% increase from the same period last year. This was primarily driven by softer demand across markets, elevated fuel prices and geopolitical tensions, as well as operational adjustments related to industry standards and compliance. These factors were partially offset by strong performance from our international OTA platform.

Speaker #1: This was primarily driven by softer demand across markets, elevated fuel prices, and geopolitical tensions, as well as operational adjustments related to industry standards and compliance.

Speaker #1: These factors were partially offset by strong performance from our international OTA platforms. Package tour revenue for the second quarter was RMB 1.2 billion, representing an 8% increase year over year.

Cindy Wang: Package tour revenue for the Q2 was RMB 1.2 billion, representing an 8% increase year-over-year. This was mainly supported by strong growth on our international OTA platform and continued momentum in customized tours across markets, as travelers increasingly sought more personalized experiences. Corporate travel revenue for the Q2 was RMB 771 million, representing an 11% increase year-over-year. This reflects the continued penetration of our managed corporate travel services among corporate clients.

Speaker #1: This was mainly supported by strong growth on our international OTA platform and continued momentum in customized tours across markets. As travelers increasingly sought more personalized experiences, corporate travel revenue for the second quarter was RMB 771 million, representing an 11% increase year over year.

Speaker #1: This reflected continued penetration of our managed corporate travel services among corporate clients. Excluding share-based compensation charges, adjusted product development expenses for the second quarter increased by 7% year over year.

Cindy Wang: Excluding share-based compensation charges, adjusted product development expenses for the second quarter increased by 7% year-over-year. Adjusted G&A expenses, also excluding the one-off anti-monopoly penalty imposed by the SAMR, increased by 8% year-over-year. The increases were primarily driven by higher personnel-related expenses. Adjusted sales and marketing expenses for the second quarter increased by 15% year-over-year. The increase was mainly driven by heightened marketing efforts in support of our global business expansion. Excluding share-based compensation charges and the anti-monopoly penalty imposed by the SAMR, adjusted EBITDA was RMB 4.6 billion for the second quarter, compared with RMB 4.9 billion in the same period last year.

Cindy Wang: Excluding share-based compensation charges, adjusted product development expenses for the Q2 increased by 7% year-over-year. Adjusted G&A expenses, also excluding the one-off anti-monopoly penalty imposed by the SAMR, increased by 8% year-over-year. The increases were primarily driven by higher personnel-related expenses. Adjusted sales and marketing expenses for the Q2 increased by 15% year-over-year.

Speaker #1: Adjusted G&A expenses, also excluding the one-off anti-monopoly penalty imposed by the SAMR, increased by 8% year over year. The increases were primarily driven by higher personnel-related expenses.

Speaker #1: Adjusted sales and marketing expenses for the second quarter increased by 15% year over year. The increase was mainly driven by heightened marketing efforts in support of our global business expansion.

Cindy Wang: The increase was mainly driven by heightened marketing efforts in support of our global business expansion. Excluding share-based compensation charges and the anti-monopoly penalty imposed by the SAMR, adjusted EBITDA was RMB 4.6 billion for the Q2, compared with RMB 4.9 billion in the same period last year.

Speaker #1: Excluding share-based compensation charges and the anti-monopoly penalty imposed by the SAMR, adjusted EBITDA was RMB 4.6 billion for the second quarter, compared with RMB 4.9 billion in the same period last year.

Speaker #1: Excluding share-based compensation charges, the anti-monopoly penalty imposed by the SAMR, fair value changes of equity securities investments and exchangeable senior notes recorded in other income, and their tax effects, non-GAAP diluted earnings per ordinary share and per ADS were RMB 7.27, or $1.07, for the second quarter of 2026.

Cindy Wang: Excluding share-based compensation charges, the anti-monopoly penalty imposed by the SAMR, fair value changes of equity securities investments and exchangeable senior notes recorded in other income and their tax effects, non-GAAP diluted earnings per ordinary share and per ADS were RMB 7.27 or US$1.07 for the second quarter of 2026, compared with RMB 7.20 for the same period in 2025. As of 30 June 2026, the balance of cash and cash equivalents, restricted cash, short-term investments, held-to-maturity time deposit, and financial products was RMB 100.5 billion or US$14.8 billion. Looking ahead, we will stay focused on disciplined execution and strategic investments, strengthening our business today and positioning us for sustainable growth over the long term. With that, operator, please open the line for questions.

Cindy Wang: Excluding share-based compensation charges, the anti-monopoly penalty imposed by the SAMR, fair value changes of equity securities investments and exchangeable senior notes recorded in other income and their tax effects, non-GAAP diluted earnings per ordinary share and per ADS were RMB 7.27 or US$1.07 for the Q2 of 2026, compared with RMB 7.20 for the same period in 2025. As of 30 June 2026, the balance of cash and cash equivalents, restricted cash, short-term investments, held-to-maturity time deposit, and financial products was RMB 100.5 billion or US$14.8 billion.

Speaker #1: Compared with RMB 7.20 for the same period in 2025. As of June 30, 2026, the balance of cash and cash equivalents, restricted cash, short-term investments, held-to-maturity time deposits, and financial products was RMB 100.5 billion, or USD 14.8 billion.

Speaker #1: Looking ahead, we will stay focused on disciplined execution and strategic investment, strengthening our business today and positioning us for sustainable growth over the long term.

Cindy Wang: Looking ahead, we will stay focused on disciplined execution and strategic investments, strengthening our business today and positioning us for sustainable growth over the long term. With that, operator, please open the line for questions.

Speaker #1: With that, operator, please open the line for questions.

Speaker #2: Thank you very much. As a reminder, to ask a question, please press star one-one on your telephone and wait for your name to be announced.

Operator: Thank you very much. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. First question comes from the lines of Simon Cheung from Goldman Sachs. Please go ahead.

Speaker #2: To observe your question, please press star 11 again. First question comes from the line of Simon Chun from Goldman Sachs. Please go ahead.

Speaker #3: Thanks, Jane. Jane and Cindy, thank you for the presentations. I have one small question. Just after the conclusions of the antitrust investigations, how should we think about the implications to your strategic priorities?

Simon Cheung: Thanks, James, Jane, and Cindy, for the presentations. I have one small question. Just after the conclusions of the antitrust investigations, how should we think about the implications to your strategic priorities? Appreciate it. Thank you.

Speaker #3: I appreciate it. Thank you.

Speaker #1: Thank you. We fully accept the regulator's decision and view the conclusions as a good opportunity to reinforce our core strategic path. Our ratification measures are consistent with our long-standing G2 strategy, which is great quality and globalization.

Jane Sun: Thank you. We fully accepted the regulator's decision and we view the conclusion as a good opportunity to reinforce our core strategic path. Our ratification measures are consistent with our long-standing G2 strategy, which is great quality and globalization. On the great quality, we want to make sure we reinforce the value we deliver to both of our partners and our users. We focus on improving overall value we deliver to hotel partners, which we believe will support a deeper and more sustainable partnership. At the same time, we continue to invest in technology and merchant tools to improve transparency, operational efficiency, customer service, and overall users experience. This allows us to compete on broader value rather than primarily on price. AI is increasingly becoming an important part of our business, helping us enhance products capabilities and improve efficiency across all the business lines.

Speaker #1: On the great quality, we want to make sure we reinforce the value we deliver to both our partners and our users. We focus on improving overall value.

Speaker #1: We deliver to hotel partners. We believe we’ll support a deeper and more sustainable partnership. At the same time, we continue to invest in technology and merchant tools to improve transparency, operational efficiency, customer service, and overall user experience.

Jane Sun: At the same time, we continue to invest in technology and merchant tools to improve transparency, operational efficiency, customer service, and overall users experience. This allows us to compete on broader value rather than primarily on price. AI is increasingly becoming an important part of our business, helping us enhance products capabilities and improve efficiency across all the business lines.

Speaker #1: This allows us to compete on broader value rather than primarily on price. AI is increasingly becoming an important part of our business, helping us enhance product capabilities and improve efficiency across all business lines.

Speaker #1: On globalization, we continue to strengthen our long-term growth engine through our globalization strategy. Inbound travel has become a very important engine. We will create value and job opportunities for the country.

Jane Sun: On globalization, we continue to strengthen our long-term growth engine through globalization strategy. Inbound travel become a very important engine, which will create value and job opportunity for the country. International expansion also enable us to serve more and global customers. Our global supply and technology integration will enable us to grow our network and application capability to leverage our scale and strength. Moving forward, we will continue to invest to make sure we are in compliance with the regulation and cooperate with the regulatory to make sure that our daily operation and to strengthen our governance framework. We believe a more open and transparent domestic ecosystem will provide a stronger foundation for us to execute G2 with great speed, discipline, and long-term value creations. Thank you.

Speaker #1: International expansion also enables us to serve more global customers. Our global supply and technology integration will enable us to grow our network and application capabilities, leveraging our scale and strength.

Speaker #1: Moving forward, we'll continue to embed to make sure we are in compliance with the regulation and incorporate with the regulatory to make sure that our daily operation and to strengthen our governance framework.

Jane Sun: Moving forward, we will continue to invest to make sure we are in compliance with the regulation and cooperate with the regulatory to make sure that our daily operation and to strengthen our governance framework. We believe a more open and transparent domestic ecosystem will provide a stronger foundation for us to execute G2 with great speed, discipline, and long-term value creations. Thank you.

Speaker #1: We believe a more open and transparent domestic ecosystem will provide a stronger foundation for us to execute G2 with great speed, discipline, and long-term value creation.

Speaker #1: Thank you.

Speaker #3: Thank you, Jane.

Simon Cheung: Thank you, Jane.

Speaker #4: Thank you, Jane.

Operator: Thank you. Just a moment for our next question, please. Next, we have Brian Gong from Citi.

Speaker #2: Thank you. Just a moment for our next question, please. Next, we have Brian Gong from Citi.

Brian Gong: Good morning, James, Jane, Cindy, and Michelle. Thanks for the presentation. I would like to ask a little bit more details on hotel side. Could you elaborate on your new collaboration framework with hotel partners, and how will these rectification measures impact your market competitiveness? Thank you.

Speaker #4: Good morning, James, Jane, Cindy, and Michelle. Thanks for the presentation. I would like to ask for a little bit more detail on the hotel side. Could you elaborate on your new collaboration framework with hotel partners, and how will these ratification measures impact your market competitiveness?

Speaker #4: Thank you.

Speaker #1: Thank you for your question. Our updated collaboration framework is designed to foster a more open, transparent, and mutually beneficial partnership model, with greater emphasis on value creation and sustainable growth.

Jane Sun: Thank you for your question. Our updated collaboration framework is designed to foster a more open, transparent, and mutually beneficial partnership model with greater emphasis on value creation and sustainable growth. Under the new framework, our hotel recommendation and ranking mechanism are designed to better match travelers' demand with hotel offerings. The new framework has a couple of dimensions. For example, customer's feedback, service quality, information level, product competitiveness, and historical conversion rate, et cetera. By dynamically weighting these factors, we aim to improve matching between the diverse customers' need with relevant high-quality hotel supply while providing hotel with a more flexible and market-oriented partnership environment. Thank you.

Speaker #1: Under the new framework, our hotel recommendation and ranking mechanism are designed to better match travelers' demands with hotel offerings. The new framework has a couple of dimensions.

Speaker #1: For example, customers' feedback, service quality, information level, product competitiveness, and historical conversion rate, etc. By dynamically weighting these factors, we aim to improve the matching between the diverse customers' needs and relevant, high-quality hotel supply, while providing hotels with a more flexible and market-oriented partnership environment.

Jane Sun: By dynamically weighting these factors, we aim to improve matching between the diverse customers' need with relevant high-quality hotel supply while providing hotel with a more flexible and market-oriented partnership environment. Thank you.

Speaker #1: Thank you.

Speaker #4: Thank you. Thank you.

[Analyst]: Thank you.

Brian Gong: Thank you.

James Liang: Thank you.

Speaker #2: Thank you. Just a moment for our next question, please. Next, we have Joyce June from Bank of America.

Operator: Thank you. Just a moment for our next question, please. Next, we have Joyce Ju from Bank of America.

Joyce Ju: Morning, James, Jane, Cindy, and Michelle. Thanks for taking my question. Could you help us size the financial impact of the penalty and talk through how these changes affect your operations and financials over the near term and the longer term? Thanks.

Speaker #5: Morning, James, Jane, Cindy, and Michelle. Thanks for taking my question. Could you help us size the financial impact of the panel and talk through how these trends affect your operations and financials over the near term or the longer term?

Speaker #5: Thanks.

Speaker #1: Thank you. From an accounting perspective, we recognized an expense of RMB 5.18 billion and counter revenue of RMB 122 million in the second quarter. These are one-time items and do not reflect the underlying performance of our business in the second quarter.

Jane Sun: Thank you. From an accounting perspective, we recognized expenses of RMB 5.18 billion and control revenue of RMB 122 million in Q2. These are one-time items and do not reflect the underlying performance of our business in Q2. In the near term, on our business operations side, as partners transition to the new operating model and market practices adjust, we expect some volatilities on our domestic performance. However, over the longer-term period, we expect our growth trajectory to be driven by the underlying strength of our business and our G2 strategy, particularly the expansion of our global footprint. We expect our international business to contribute an increasing share of group revenue and incremental growth. Thank you.

Cindy Wang: Thank you. From an accounting perspective, we recognized expenses of RMB 5.18 billion and control revenue of RMB 122 million in Q2. These are one-time items and do not reflect the underlying performance of our business in Q2. In the near term, on our business operations side, as partners transition to the new operating model and market practices adjust, we expect some volatilities on our domestic performance.

Speaker #1: In the near term, on our business operation side, as partners transition to the new operating model and market practices adjust, we expect some volatility in our domestic performance.

Speaker #1: However, over the longer-term period, we expect our growth trajectory to be driven by the underlying strength of our business and our G2 strategy, particularly the expansion of our global footprint.

Cindy Wang: However, over the longer-term period, we expect our growth trajectory to be driven by the underlying strength of our business and our G2 strategy, particularly the expansion of our global footprint. We expect our international business to contribute an increasing share of group revenue and incremental growth. Thank you.

Speaker #1: We expect our international business to contribute an increasing share of growth revenue and incremental growth. Thank you.

Speaker #5: Thanks.

Joyce Ju: Thanks.

Speaker #1: Thanks.

Speaker #2: Thank you.

Operator: Thank you.

Operator: Thank you. Next, we have Yang Liu from Morgan Stanley.

Joyce Ju: Thank you.

Speaker #5: Thanks.

Speaker #2: Next, we have Yang Liu from Morgan Stanley.

Operator: Next, we have Yang Liu from Morgan Stanley.

Speaker #6: Thanks for the opportunity to ask questions. My question is about the AI strategy. We are seeing more platforms start agentic search and booking in travel.

Yang Liu: Thanks for the opportunity to ask question. My question is about the AI strategy. We see more platforms start the agentic search and booking on travel. How do you view this trend, and how does Trip.com adapt to it? Thank you.

Speaker #6: How do you view this trend, and how does Trip.com adapt to it? Thank you.

Speaker #7: We believe AI will meaningfully reshape how travelers discover, search for, and ultimately book travel. It changes the user interface but does not eliminate the underlying need for high-quality travel supply, real-time availability, transactions, and fulfillment.

James Liang: We believe AI will meaningfully reshape how travelers discover, search for, and ultimately book travel. It changes the user interface but does not eliminate the underlying need for high-quality travel supply, real-time availability, transactions, and fulfillment. Looking at the traveler journey, we broadly see four stages: inspiration, search, transaction, fulfillment. First, inspiration. Travelers often start with broad or unstructured needs. Historically, broad search, social media, travel content platforms, and offline interactions have played important roles at this stage. We expect AI agents to become an increasingly important discovery and inspiration channel as they get better at understanding preferences and generating personalized recommendations. We are therefore expanding partnerships with leading AI platforms and exploring emerging AI discovery channels to capture incremental demand and stay close to evolving user behavior. At the same time, we are using AI to improve the efficiency and scalability of travel content generation and enrichment. Second, search.

Speaker #7: Looking at the traveler journey, we broadly see four stages: inspiration, search, transaction, and fulfillment. First, inspiration. Travelers often start with broad or unstructured needs. Historically, broad search, social media, travel content platforms, and offline interactions have played important roles at this stage.

Speaker #7: We expect AI agents to become an increasingly important discovery and inspiration channel as they get better at understanding preferences and generating personalized recommendations. We are therefore expanding partnerships with leading AI platforms and exploring emerging AI discovery channels to capture incremental demand and stay close to evolving user behavior.

James Liang: We expect AI agents to become an increasingly important discovery and inspiration channel as they get better at understanding preferences and generating personalized recommendations. We are therefore expanding partnerships with leading AI platforms and exploring emerging AI discovery channels to capture incremental demand and stay close to evolving user behavior. At the same time, we are using AI to improve the efficiency and scalability of travel content generation and enrichment. Second, search.

Speaker #7: At the same time, we are using AI to improve the efficiency and scalability of travel content generation and enrichment. Second, search. Once travelers have clearer intent, the key becomes timely, complete, and accurate information, as well as actionable recommendations.

James Liang: Once travelers have clearer intent, the key becomes timely, complete and accurate information, and actionable recommendations. This is where our proprietary travel data and supply capabilities becomes increasingly valuable. Our data covers not only hotel and flight information, but also inventory, pricing, availability, policies, and other attributes needed to make and fulfill a booking. We are adapting on both the distribution and technology sides. Externally, we are leveraging GEO and AEO and exploring agent-to-agent collaboration to capture emerging AI-driven traffic and demand. Trip.com has established an early position in AI-powered travel with partnerships with leading AI platforms. Internally, we are building differentiated travel-specific AI capabilities by combining large models with our proprietary travel data and deep domain knowledge. In the second quarter, we rolled out our fully AI-powered search, enabling better understanding of user intent and more relevant matching and filtering.

Speaker #7: This is where our proprietary travel data and supply capabilities become increasingly valuable. Our data covers not only hotel and flight information, but also inventory, pricing, availability, policies, and other attributes needed to make and fulfill a booking.

Speaker #7: We are adapting on both the distribution and technology sides. Externally, we are leveraging GEO and AEO, and exploring agent-to-agent collaboration to capture emerging AI-driven traffic and demand.

James Liang: Externally, we are leveraging GEO and AEO and exploring agent-to-agent collaboration to capture emerging AI-driven traffic and demand. Trip.com has established an early position in AI-powered travel with partnerships with leading AI platforms. Internally, we are building differentiated travel-specific AI capabilities by combining large models with our proprietary travel data and deep domain knowledge. In the Q2, we rolled out our fully AI-powered search, enabling better understanding of user intent and more relevant matching and filtering.

Speaker #7: Trip.com has established an early position in AI-powered travel with partnerships with leading AI platforms. Internally, we are building differentiated, travel-specific AI capabilities by combining large models with our proprietary travel data and deep domain knowledge.

Speaker #7: In the second quarter, we rolled out our fully AI-powered search, enabling better understanding of user intent and more relevant matching and filtering. Early evidence demonstrated that our AI capabilities are improving the user experience and driving higher platform engagement.

James Liang: Early evidence demonstrated that our AI capabilities are improving the user experience and driving higher platform engagement. Third, transaction. Discovery only creates value when it converts into a completed booking. Our focus is a seamless closed loop, connecting real-time inventory, pricing, payment, and confirmation in a single flow with minimal friction. Finally, fulfillment.

Speaker #7: Third, transaction. Discovery only creates value when it converts into a completed booking. Our focus is a seamless closed loop, connecting real-time inventory, pricing, payment, and confirmation in a single flow with minimal friction.

Speaker #7: Finally, fulfillment. Travel does not end at booking. Changes, cancellations, rebooking, disruptions, and on-the-ground support all require reliable execution. We are using AI to improve service where it adds value, while keeping human support and operational execution at the center.

James Liang: Reliable execution. We are using AI to improve service where it adds value while keeping human support and operational execution at the center. Ultimately, we see AI as an evolution of the travel user interface rather than simply a new traffic channel. Our goal is to remain relevant wherever travelers discover and search for travel while leveraging our differentiated supply, data, transaction, and fulfillment capabilities when intent converts into a booking.

Speaker #7: Ultimately, we see AI as an evolution of the travel user interface rather than simply a new traffic channel. Our goal is to remain relevant wherever travelers discover and search for travel, while leveraging our differentiated supply, data, transaction, and fulfillment capabilities when intent converts into a booking.

Speaker #2: Thank you.

Operator: Thank you.

Yang Liu: Thank you.

Jane Sun: Thank you.

Operator: Thank you. Just a moment for our next question, please. Next we have Thomas Chong from Jefferies.

Speaker #5: Thank you.

Speaker #2: Just a moment for our next question, please.

Operator: Just a moment for our next question, please. Next we have Thomas Chong from Jefferies.

Speaker #5: Thanks.

Speaker #2: Next, we have Thomas Chun from Jefferies.

Thomas Chong: Hi. Good morning. Thanks management for taking my question. Could you walk us through the financial implication of your ongoing AI investment? Should investors expect meaningful incremental CapEx driven by AI initiatives? Thank you.

Speaker #8: Hi, good morning. Thanks, management, for taking my question. Could you walk us through the financial implications of your ongoing AI investment? Should investors expect meaningful incremental capex driven by AI initiatives?

Speaker #8: Thank you.

Speaker #1: Sure. Our AI investment carries different financial implications across time horizons, with near-term investment supporting longer-term efficiency and growth. In the near term, we expect some increase in AI-related CapEx as we expand computing infrastructure and AI capabilities.

Jane Sun: Sure. Our AI investment carries different financial implications across time horizon, with near-term investment supporting longer-term efficiency and growth. In the near term, we expect some increase in AI-related CapEx as we expand computing infrastructure and AI capabilities. However, most of our work is application-oriented development and post-training refinement rather than building large-scale foundational models from scratch. As a result, we expect the incremental investment to remain disciplined and manageable. Over the longer-term period, our goal is to translate these investments into improvements across the group. As AI scales across the core user journey, we expect greater automation and personalization to improve operational efficiency, while better matching and targeting can drive higher conversion and stronger returns on the marketing spend. Over time, these efficiency and revenue benefits should help us to offset the incremental AI cost and improve the overall economics of our business. Thank you.

Speaker #1: However, most of our work is application-oriented development and post-training refinement. Rather than building large-scale foundational models from scratch, as a result, we expect the incremental investment to remain disciplined and manageable.

Speaker #1: Over the longer-term period, our goal is to translate these investments into improvements across the group. As AI scales across the core user journey, we expect greater automation and personalization to improve operational efficiency, while better matching and targeting can drive higher conversion and stronger returns on marketing spend.

Jane Sun: Over the longer-term period, our goal is to translate these investments into improvements across the group. As AI scales across the core user journey, we expect greater automation and personalization to improve operational efficiency, while better matching and targeting can drive higher conversion and stronger returns on the marketing spend. Over time, these efficiency and revenue benefits should help us to offset the incremental AI cost and improve the overall economics of our business. Thank you.

Speaker #1: Over time, these efficiency and revenue benefits should help us to offset the incremental AI costs and improve the overall economics of our business. Thank you.

Speaker #2: Thank you.

Operator: Thank you.

Operator: Thank you. Next, we have Wei Xiong from UBS.

Speaker #5: Thank you.

Jane Sun: Thank you.

Speaker #2: Next, we have Wei Xiong from UBS.

Operator: Next, we have Wei Xiong from UBS.

Speaker #9: Hi, good morning, management. Thank you for taking my question. I'm wondering, could you please provide some updates on the recent trends in the travel market across different segments?

Wei Xiong: Hi, good morning, management. Thank you for taking my question. I am wondering, could you please provide some updates on the recent trends in the travel market across different segments? Have you observed any changes in the user behaviors, and how is our company responding to these changes? Thank you.

Speaker #9: Have you observed any changes in user behaviors? And how is our company responding to these changes? Thank you.

Speaker #1: Sure. Let me walk you through the short-term visibility. Versus the short term, we have seen there are a couple of elements impacting the travel volume.

Jane Sun: Sure. Let me walk you through the short-term visibility versus the long-term trend. In the short term, we have seen there are a couple of elements impacting the travel volume. First of all, the war in the Middle East has some impact because airlines are reducing long-haul flights. Secondly, the energy price also made travel a little bit expensive. Thirdly, during the summer, there were a lot of storms and rains, which also put some pressure on the transportation. However, for the long term, we have seen very good resilience from our customers. The new trend, we call it three Ps. The first P is premium service. We saw the high-end customers become very resilient. They are traveling all over the world, and the growth is very strong. That fits our strength in providing great quality of the services for these premium customers.

Speaker #1: First of all, the war in the Middle East has some impact because airlines are reducing long-haul flights. Secondly, the energy price also makes travel a little bit more expensive.

Speaker #1: And thirdly, during the summer, there were a lot of storms and rains, which also put some pressure on transportation. However, for the long term, we have seen very good resilience from our customers.

Speaker #1: The new trend—we call it the '3 Ps.' The first 'P' is premium. We have seen that high-end customers are very resilient. They are traveling all over the world, and the growth is very strong.

Jane Sun: The new trend, we call it three Ps. The first P is premium service. We saw the high-end customers become very resilient. They are traveling all over the world, and the growth is very strong. That fits our strength in providing great quality of the services for these premium customers. The second P is purposeful travel, for example, education travel, cultural, history, et cetera. We have put increased resources to make sure these kind of tours are elevated to new heights. The third P is pro leisure, or what we call the bleisure.

Speaker #1: And that fits our strengths in providing great quality of services for these premium customers. The second P is purpose for travel—for example, education travel, cultural, history, etc.

Jane Sun: The second P is purposeful travel, for example, education travel, cultural, history, et cetera. We have put increased resources to make sure these kind of tours are elevated to new heights. The third P is pro leisure, or what we call the bleisure. What we find is, for business travelers, there is a Thursday phenomenon where customers travel for business from Monday to Thursday, and Friday plus two weekends, they will use the opportunity to visit nearby attractions. So we provide excellent services to both business travelers as well as leisure travelers, where we can offer very good service and products when customers combine business and leisure. With the new trend, we are organizing our team and make sure our product offerings and services is meeting and exceed our customers' expectation. Thank you.

Speaker #1: And we have put increased resources to make sure these kinds of tools are elevated to new heights. The third P is pro-leisure, or what we call ‘bleisure.’ What we find is for business travelers, there is a source-based phenomenon where customers travel for business from Monday to Thursday.

Jane Sun: What we find is, for business travelers, there is a Thursday phenomenon where customers travel for business from Monday to Thursday, and Friday plus two weekends, they will use the opportunity to visit nearby attractions. So we provide excellent services to both business travelers as well as leisure travelers, where we can offer very good service and products when customers combine business and leisure. With the new trend, we are organizing our team and make sure our product offerings and services is meeting and exceed our customers' expectation. Thank you.

Speaker #1: And Friday plus two weekends, they will use the opportunity to visit nearby attractions. So we provide excellent services to both business travelers as well as leisure travelers.

Speaker #1: We can offer very good service and products when customers combine business and leisure. So, with the new trend, we are organizing our team and making sure our product offerings and services meet and exceed our customers' expectations.

Speaker #1: Thank you.

Speaker #9: Very clear. Thank you, Jay.

Wei Xiong: Very clear. Thank you, Jane.

Speaker #5: Very clear. Thank you.

Operator: Thank you. Just a moment for our next question. Next, we have Wei Fang from Mizuho Securities. Please go ahead.

Speaker #2: Thank you. Just a moment for our next question. Next, we have Wei Fang from Mizuho Securities. Please go ahead.

Wei Fang: Thank you. Good morning, James Liang, Cindy, and Michelle. Thanks for taking the question. I have one related to your international business. I am glad to see that Trip.com delivered another quarter of strong growth. I am wondering if you could share some more operational highlights, and also, what areas should we expect you to focus more on the Trip.com business in the coming quarters? Thank you.

Speaker #3: Thank you. Good morning, Jing Jing. Jing Jing, Michelle, thanks for taking the question. I have one related to your international business. I'm glad to see Trip.com deliver another quarter of strong growth.

Speaker #3: I'm wondering if you could share some more operational highlights, and also what areas should we expect you to focus more on in the Trip.com business in the coming quarters?

Speaker #3: Thank you.

Speaker #1: In the second quarter, Trip.com's revenue continued to grow by more than 50% year over year, with growth more broadly based across products and markets.

Cindy Wang: Sure. in the Q2, Trip.com's revenue continued to grow by more than 50% year-over-year, with growth broader based across products and markets. First, on our product offerings. The flight demand faced some pressure due to tightened capacity and higher prices. Higher average booking value helped mitigate part of this impact, while accommodation continued to deliver strong growth. In addition, attractions and packaged product has maintained superior growth since the launch of last year. This reflects healthy demand for our short-haul offerings and continued progress in cross-selling across the platform. Second, geographic expansion. Asia Pacific remains to be our largest growth contributor, while Europe and the Americas delivered faster growth from a smaller base. This gives us increasing diversification as we expand beyond our core APAC markets. Third, on distribution.

Speaker #1: First, on our product offerings: Flight demand faced some pressure due to tightened capacity and higher prices. Higher average booking value helped mitigate part of this impact, while accommodation continued to deliver strong growth.

Speaker #1: In addition, attractions and packaged products have maintained superior growth since their launch last year. This reflects healthy demand for offshore offerings and continued progress in cross-selling across the platform.

Cindy Wang: This reflects healthy demand for our short-haul offerings and continued progress in cross-selling across the platform. Second, geographic expansion. Asia Pacific remains to be our largest growth contributor, while Europe and the Americas delivered faster growth from a smaller base. This gives us increasing diversification as we expand beyond our core APAC markets. Third, on distribution. Mobile bookings continued to gain share, reaching a new high at over 70% of our total bookings, supported by a smoother booking experience and stronger organic traffic.

Speaker #1: Second, geographic expansion. Asia-Pacific remains our largest growth contributor, while Europe and the Americas delivered faster growth from a smaller base. This gives us increasing diversification as we expand beyond our core APAC markets.

Speaker #1: Third, on distribution: mobile bookings continued to gain share, reaching a new high at over 70% of our total bookings, supported by a smoother booking experience and stronger organic traffic.

Cindy Wang: Mobile bookings continued to gain share, reaching a new high at over 70% of our total bookings, supported by a smoother booking experience and stronger organic traffic. We also saw strong growth in traffic from GEO and AI agent channels, although these channels remain comparatively small today. More importantly, the Trip.com brand delivered meaningful margin improvement in Q2, driven by better marketing efficiencies, economics of scale, and improved flight economics. Looking ahead, our focus remains on scaling across APAC and other international markets by expanding local supplier and building brand awareness, while maintaining disciplined ROI-driven marketing. This approach allowed us to pursue strong growth while continuing to improve the quality and economics of the business going forward. Thank you.

Speaker #1: We also saw strong growth in traffic from GEO and AI agent channels, although these channels remain comparatively small today. More importantly, the Trip.com brand delivered meaningful margin improvement in the second quarter, driven by better marketing efficiencies.

Cindy Wang: We also saw strong growth in traffic from GEO and AI agent channels, although these channels remain comparatively small today. More importantly, the Trip.com brand delivered meaningful margin improvement in Q2, driven by better marketing efficiencies, economics of scale, and improved flight economics. Looking ahead, our focus remains on scaling across APAC and other international markets by expanding local supplier and building brand awareness, while maintaining disciplined ROI-driven marketing.

Speaker #1: Economies of scale and improved flight economics. Looking ahead, our focus remains on scaling across APAC and other international markets by expanding local suppliers and building brand awareness.

Speaker #1: While maintaining discipline in our driven marketing, this approach allowed us to pursue strong growth while continuing to improve the quality and economics of the business going forward.

Cindy Wang: This approach allowed us to pursue strong growth while continuing to improve the quality and economics of the business going forward. Thank you.

Speaker #1: Thank you.

Speaker #2: Thank you for all the questions. I will now hand back to Michelle for closing remarks. Please go ahead.

Operator: Thank you for all the questions. I will now hand back to Michelle for closing remarks. Please go ahead.

Speaker #1: Thank you. Thanks to everyone for joining us today. You can find the transcript and webcast of today's call on investors.trip.com. We look forward to speaking with you on our Q3 earnings call.

Michelle Qi: Thank you. Thanks for everyone for joining us today. You can find the transcript and webcast of today's call on investors.trip.com. We look forward to speaking with you on our Q3 earnings call. Thank you, and have a good day.

Speaker #1: Thank you, and have a good day. Thank you.

Cindy Wang: Thank you very much.

Jane Sun: Thank you very much.

Michelle Qi: Thank you.

Cindy Wang: Thank you.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

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Q2 2026 Trip.com Group Ltd Earnings Call

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