More Than 70% of Trip.com Bookings Now Come From Mobile

Trip.com Group (NASDAQ:TCOM) stock is trading higher premarket Wednesday after the company reported better-than-expected second-quarter results.Net revenue rose 6% year over year to 15.7 billion Chinese yuan despite macroeconomic and geopolitical uncertainty, higher fuel costs and elevated airfares.Adjusted earnings per ordinary share and ADS were 7.27 Chinese yuan, up from 7.20 Chinese yuan a year earlier.In U.S. dollars, adjusted EPS of $1.07 beat the analyst estimate of $0.91. Revenue of $2.308 billion also topped the $2.290 billion estimate.Management said higher travel costs weighed more heavily on long-haul trips. As a result, some travelers shifted toward shorter-haul destinations while maintaining their appetite for travel.Earnings SnapshotAccommodation reservation revenue rose 6% year over year to 6.6 billion Chinese yuan, driven mainly by international hotel bookings. Excluding a contra-revenue item related to an administrative penalty from China’s State Administration for Market Regulation, or SAMR, revenue would have increased 8%.Package tour revenue climbed 8% to 1.2 billion Chinese yuan. Corporate travel revenue increased 11% to 771 million Chinese yuan.However, transportation ticketing revenue fell 1% to 5.4 billion Chinese yuan. The company cited softer demand, higher fuel prices, geopolitical tensions and industry compliance adjustments.As of June 30, Trip.com Group held 100.5 billion Chinese yuan in cash and cash equivalents, restricted cash, short-term investments, held-to-maturity investments, time deposits and financial products.Trip.com said more than 70% of its total bookings now come from mobile, marking a new high for the platform. The company attributed the shift to a smoother booking experience and stronger organic traffic, while traffic from SEO and AI-agent channels also grew strongly from a smaller base. See More: Top Value Stocks Inbound Travel Remains StrongInbound travel remained one of Trip.com Group’s fastest-growing businesses, with revenue rising at a high-double-digit rate year over year.Asia-Pacific remained the largest source market, led by travelers from Korea and Southeast Asia. Europe and the Americas also posted strong seasonal growth during major holidays.Revenue from Trip.com’s international online travel agency platform jumped more than 50% year over year. Growth reflected higher transaction value and a favorable mix despite elevated fuel prices and airfares.First- and business-class flight bookings increased more than 70% year over year in the first half of 2026. Customized tour bookings surged 600%.Outbound demand remained resilient, though travelers became more selective. They increasingly favored short-haul and visa-free destinations. Management said the shift appears mainly cyclical rather than structural and expects underlying demand to recover as temporary cost pressures ease.Domestic travel also remained strong, supported by the Qingming, May Day and Dragon Boat Festival holidays.During the spring break pilot season, family travel bookings and spending in participating cities each surged more than 300% year over year. Overall bookings across those cities rose nearly 150%, while spending increased nearly 200%.Trip.com Group’s entertainment gross bookings climbed more than 80% year over year. Entertainment spending in Suzhou, Chengdu and Zhengzhou increased more than 200% during the first half of 2026.Meanwhile, AI-assisted orders through TripGenie surged about 400% year over year. Nearly 60% of interactions now relate to hotel, flight and attraction bookings.Trip.com Group aims to attract 200 million inbound travelers over the next five years by expanding destinations, experiences and local tourism businesses.Key UpdatesIn July, Trip.com Group received an administrative decision from China’s SAMR. The company said it accepted the decision and is implementing the required measures.Trip.com is ending its Tier 1 and Tier 2 distribution programs. It will move partners to a new multi-tiered framework designed to provide greater commercial autonomy.The company is also simplifying platform and promotional rules. In addition, it plans to invest in data, technology and international marketing while updating hotel-ranking algorithms to emphasize service quality and sustained guest satisfaction.Trip.com also plans to strengthen data security, personal information protection and the responsible use of technology and algorithms.TCOM Price Action: Trip.com Group shares were up 4.62% at $41.06 during premarket trading on Wednesday, according to Benzinga Pro data.Photo via Shutterstock Read Also: Trip.com Gears Up For Q2 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts