| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3.20 | -95 |
| Intrinsic value (DCF) | 161.23 | 163 |
| Graham-Dodd Method | 27.40 | -55 |
| Graham Formula | 75.70 | 24 |
Trip.com Group Limited (LSE: 0I50.L) is a leading global travel service provider headquartered in Shanghai, China. Operating under well-known brands such as Ctrip, Qunar, Trip.com, and Skyscanner, the company offers a comprehensive suite of travel-related services, including accommodation reservations, transportation ticketing (air, train, bus, and ferry), packaged tours, corporate travel management, and in-destination services. With a strong presence in China and expanding internationally, Trip.com Group serves both leisure and business travelers through its integrated digital platforms. The company also provides value-added services such as travel insurance, online check-in, airport VIP lounge access, and corporate travel management solutions. Founded in 1999, Trip.com Group has grown into one of the largest online travel agencies (OTAs) in the world, leveraging technology and data analytics to enhance customer experience and operational efficiency. The company's diversified revenue streams and strong brand recognition position it as a key player in the rapidly recovering global travel industry.
Trip.com Group presents an attractive investment opportunity due to its dominant position in China's travel market and growing international footprint. The company's strong financials, including a market cap of $29.2 billion, revenue of $53.3 billion, and net income of $17.1 billion (FY 2024), reflect its robust business model. With a low beta of 0.075, the stock may offer stability in volatile markets. However, risks include exposure to regulatory changes in China, intense competition in the global OTA space, and potential macroeconomic headwinds affecting travel demand. The company's solid cash position ($48.4 billion) and consistent operating cash flow ($19.6 billion) provide financial flexibility for growth initiatives and potential shareholder returns, evidenced by its $0.30 dividend per share.
Trip.com Group holds a competitive advantage through its strong brand portfolio (Ctrip, Qunar, Trip.com, Skyscanner), which allows it to cater to diverse customer segments across geographies. Its deep integration with China's travel ecosystem gives it an edge in the world's largest outbound travel market. The company's technology stack, including AI-driven recommendations and mobile-first platforms, enhances user experience and operational efficiency. However, it faces stiff competition from global OTAs with broader international reach. Trip.com's focus on bundled offerings (flights + hotels + tours) differentiates it from competitors who may specialize in single verticals. The company's corporate travel management solutions also provide a sticky revenue stream. While its domestic dominance in China is a key strength, international expansion remains a challenge due to entrenched competitors. The capital-intensive nature of the OTA industry and reliance on supplier relationships (airlines, hotels) pose ongoing competitive pressures.