Tongcheng Travel (780) Q1 2026 earnings summary

Executive summary

• China's travel industry and the company saw strong revenue and profit growth in Q1 2026, driven by robust demand, structural shifts in consumer preferences, and supportive government policies, including new spring and autumn breaks.

• Personalized, experiential travel and AI-driven services are reshaping offerings, with enhanced user engagement and stable partnerships.

• User base expanded, especially in non-first-tier cities, with over 87% of registered users from these regions.

• Hotel management business, including Elong and Wanda Hotels, continued rapid expansion, strengthening market position.

• Maintained top-tier ESG ratings, recognized by S&P Global and MSCI, and advanced sustainability initiatives.

Financial highlights

• Q1 2026 revenue reached RMB 5,005.8 million, up 14.4% year-over-year; adjusted net profit was RMB 941.1 million, up 19.4%.

• Core OTA revenue grew 17.3% year-over-year to RMB 4.4 billion; accommodation revenue up 14.7% to RMB 1,364.5 million.

• Transportation ticketing revenue was RMB 2,124.0 million, up 6.2% year-over-year; tourism revenue declined 5.0% to RMB 555.9 million.

• Other business revenue surged 59.6% to RMB 961.4 million, mainly from hotel management and Wanda Hotels consolidation.

• Adjusted EBITDA was RMB 1,389.0 million, up 19.8% year-over-year, with margin improving to 27.7%.

Outlook and guidance

• Positive outlook for 2026, with continued industry growth expected from new holiday policies, resilient travel demand, and evolving consumer preferences.

• Focus on core OTA, outbound expansion, hotel management growth, and leveraging AI for operational efficiency.

• Committed to ESG leadership and reducing carbon emission intensity by 18% by 2030.

• Q2 2026 expected to see pressure on transportation segment due to higher airfares and reduced flight capacity, but accommodation and other revenue segments to maintain growth.

• Targeting further market share gains and enhanced user engagement through multi-channel strategies.