Trip.com Says China’s Regulatory Crackdown Is Starting to Show Up in Its Numbers
Photo Credit: Trip.com mobile app icon is seen on an iPhone. Adobe Stock / Tada Images
Skift Take
China's regulatory push is no longer just a compliance issue for Trip.com Group. It's now influencing how the company operates, and its near-term financial outlook.
Trip.com Group is feeling the squeeze of China’s tightening regulatory grip and it is now showing up in its financial outlook. The country's largest online travel company is navigating two separate pressures — a sector-wide crackdown on train ticketing practices and its own ongoing antitrust investigation.
Trip.com’s forecast for the second quarter pegs revenue growth at 3% to 8%, a significant dip from the 17% growth it reported in the first quarter.
Management attributed the weaker outlook partly to higher airfares and geopolitical uncertainty, but also to changes it is making to comply with evolving regulatory requirements.
“Our guidance incorporates the near-term impact of upgrading our operational practices to align with updated industry standards and compliance framework,” Chief Financial Officer Xiaofan Wang said during Thursday's earnings call.
