In a dramatic turn of events, shares of Trip.com, a leading player in the online travel service industry in China, experienced a significant drop of nearly 22% on Thursday in Hong Kong trading. This sharp decline follows the announcement that Chinese authorities have initiated an antitrust investigation into the company.
The State Administration for Market Regulation (SAMR) of China disclosed late Wednesday its decision to scrutinize Trip.com, citing concerns regarding 'suspected abuse of its dominant market position and monopolistic practices.' This information was conveyed through a statement that CNBC translated from Mandarin, highlighting the serious nature of the allegations against the firm.
As Asia's largest online travel service provider by market capitalization, Trip.com holds a prominent position not just regionally but also on the global stage. The company has significant investments in various travel-related platforms, including the UK-based flight aggregator Skyscanner and the Indian travel service MakeMyTrip, along with numerous other Chinese travel enterprises.
In response to the investigation, Trip.com released a statement expressing its intention to 'actively cooperate' with the regulatory body while reassuring stakeholders that its business operations continue unaffected.
This situation is reminiscent of a high-profile case in 2021 when SAMR imposed a record fine of 18.2 billion yuan (approximately $2.8 billion) on Alibaba, another giant in the tech industry, after finding it guilty of monopolistic behavior.
The timing of this investigation is particularly noteworthy as the Chinese tourism sector is anticipated to rebound significantly this year. According to projections from China Trading Desk, mainland Chinese travelers are expected to embark on between 165 million and 175 million cross-border journeys in 2026, an increase from an estimated 155 million trips last year.
Moreover, the upcoming Chinese New Year holiday, which typically sees a massive influx of travel as millions return to their hometowns, will take place from February 5 to February 23. Travel consultancy Dragon Trail International reported that in 2025, around 501 million individuals traveled domestically during this period, marking a commendable 5.9% increase from the previous year, with tourism spending reaching 6.77 billion yuan—a 7% rise.
This unfolding narrative raises several questions: How will Trip.com navigate these challenges amidst increasing scrutiny? What impact will this investigation have on the broader travel market in China? This is certainly a developing story to watch closely.
