Trip.com has released Trip.Planner, an artificial intelligence-powered (AI) travel planning initiative which enables consumers to build personalized trips.

Travelers can begin planning with three questions around destination, trip duration and travel style.

The company said Trip.Planner acts as a concierge and offers real-time transport integration including pricing, availability and descriptions as well as live availability for restaurants, hotels and attractions.

Recommendations are also destination specific such as relevant airport transfers and local tours. The service also provides in-app AI chat with “expert-vetted” recommendations.

Existing bookings can be brought into the app and amended from the itinerary. Trip.com also said a “floating AI button” reacts in the background, offering suggestions as users edit trips.

Trip.Planner is currently available on English-language Trip.com sites in select regions including the United States, Canada and the United Kingdom, with plans to expand it in the coming months.

During Trip.com Group’s second quarter 2025 earnings call, chairman James Liang described the trip planner as an upgrade and said AI remains central to the company’s business strategy.

“We believe OTAs are uniquely positioned to lead the development of travel focused AI. With access to proprietary user insights, real time product feeds and verified inventories, OTAs can deliver more accurate, context aware and trustworthy recommendations than general purpose AI agents.”

Trip.com Group announced second quarter 2025 financial results revealing a 16% year-over-year net revenue increase to $2.1 billion.

Accommodation reservation revenue increased 21% to $869 million year over year while transportation ticketing revenue rose 11% to $753 million for the same period.

“We are encouraged by the strong momentum across all segments of the travel industry,” said Jane Sun, CEO of Trip.com Group.

“Our strategy focuses on capturing growing demand from every demographic, with special attention to inbound travel. At the same time, we are enhancing our service capabilities to provide global travelers with seamless local experiences. These efforts further reinforce our position as a trusted platform in the global travel landscape.”

Packaged tour revenue for Q2 increased 5% to $151 million while corporate travel revenue was up 9% year over year to $97 million.

Sales and marketing expenses in Q2 increased to $464 million, up 17% year over year. Adjusted EBITDA for the period came in at $680 million, up for $611 million in Q2, 2024.

Trip.com Group said inbound travel bookings increased by more than 100% for the quarter attributed to demand from Korea and Southeast Asia. 

“This growth underscores the broader potential of China’s inbound travel sector, which remains an underdeveloped yet highly promising contributor to the national economy,” said Liang.

In Q2 2025, Trip.com Group delivered a mixed but strategically significant performance, reporting a 16% year-over-year revenue increase to RMB 14.8 billion ($2.1 billion) while navigating margin pressures in a fiercely competitive global travel market. The company’s ability to balance top-line growth with AI-driven innovation and strategic cost management positions it as a compelling long-term investment, but investors must weigh near-term challenges against its ambitious vision for the future.

Revenue Growth and Strategic Resilience

Trip.com’s Q2 results reflect a robust recovery in global travel demand, particularly in outbound and inbound segments. Inbound travel bookings surged by over 100% year-over-year, while international bookings grew 60%, driven by eased visa policies and a rebound in APAC-based outbound travel. The company’s adjusted EBITDA rose to RMB 4.9 billion, a 10.7% increase from the prior year, despite rising operational costs. This resilience stems from Trip.com’s dual focus on service differentiation and technological innovation, which have allowed it to avoid price wars and maintain a 70% mobile transaction share—a critical metric in the digital-first travel era.

However, gross profit margins dipped slightly to 81.06% in Q2, down from 82.5% in Q2 2024, as the company invested heavily in AI infrastructure and expanded its global partnerships. These margin pressures highlight the trade-off between short-term profitability and long-term strategic gains.

AI as a Competitive Moat

Trip.com’s AI initiatives are redefining the OTA landscape. Tools like TripGenie (a conversational AI assistant) and Trip.Planner (a generative AI-powered itinerary builder) have become central to its value proposition. The latter, enhanced by large language models (LLMs), enables users to create hyper-personalized itineraries with real-time integration of transportation, accommodations, and local experiences. This level of customization has driven a 400% year-over-year growth in experience-based revenue, a segment where competitors like Booking.com and Expedia are still catching up.

Beyond consumer-facing tools, Trip.com’s Intellitrip platform is transforming its B2B ecosystem. AI-powered tools for hotels—such as multilingual customer service systems, real-time operational insights, and low-cost video content generators—are helping partners improve efficiency and capture inbound demand. These innovations not only strengthen Trip.com’s relationships with suppliers but also create a flywheel effect: better partner performance drives higher user satisfaction, which in turn fuels platform growth.

Competitive Landscape and Market Position

Trip.com’s Q2 performance underscores its leadership in the Asia-Pacific market, where it holds a dominant position against rivals like Ctrip and Expedia. While Booking.com remains the global OTA leader with a 2023 revenue of $21.4 billion, Trip.com’s focus on AI-driven personalization and localized services gives it an edge in regions like China, Southeast Asia, and the Middle East.

Expedia’s recent AI-powered tools, such as Romie and Hopper integrations, are formidable, but Trip.com’s first-mover advantage in LLM-based planning and its 30%+ EBITDA margin (compared to Expedia’s 18% in Q2 2025) suggest a stronger financial foundation for sustained innovation. Meanwhile, Ctrip’s domestic focus in China, while profitable, limits its global scalability compared to Trip.com’s dual strategy of domestic and international expansion.

Margin Pressures and Strategic Risks

Despite its strengths, Trip.com faces headwinds. Rising R&D costs for AI development and aggressive international expansion could pressure margins in the near term. The company’s $5 billion share repurchase program, announced in Q2, aims to offset ESOP dilution and signal confidence in its long-term value, but investors should monitor cash flow sustainability.

Additionally, the OTA market is highly competitive, with Booking.com and Expedia investing heavily in AI and loyalty programs. Trip.com’s success will depend on its ability to monetize AI-driven personalization without eroding margins. For example, its Old Friends Club (targeting senior travelers) grew 100% year-over-year, but scaling such niche segments requires careful cost management.

Investment Thesis and Outlook

Trip.com’s Q2 results validate its strategic pivot toward AI and experiential travel. With the global OTA market projected to grow at a 12.54% CAGR through 2034, the company is well-positioned to capitalize on structural tailwinds, including the $1 trillion potential of the silver-travel market and the rise of AI-driven personalization.

Key risks to consider:
– Margin volatility from R&D and expansion costs.
– Regulatory scrutiny in China and other markets.
– Competition from Booking.com and Expedia’s AI advancements.

Investment advice:
– Buy for long-term investors who believe in Trip.com’s AI-first strategy and its ability to monetize niche markets.
– Hold for those prioritizing short-term margin stability, given current pressures.
– Monitor the company’s R&D spend as a percentage of revenue and international booking growth as leading indicators of strategic success.

In conclusion, Trip.com’s Q2 earnings demonstrate a company navigating the complexities of a post-pandemic recovery with a clear-eyed focus on innovation. While margin pressures persist, its AI-driven differentiation and strategic resilience make it a compelling play for investors seeking exposure to the next phase of the travel industry’s digital transformation.