Tongcheng Travel reported a 6.8% year-over-year revenue increase to RMB 5.0 billion in the second quarter of 2026, modestly exceeding analyst expectations of RMB 4.96 billion. Adjusted net profit grew 9.8% to RMB 851 million, while adjusted basic earnings per share reached RMB 0.36, a 5.9% year-over-year rise but falling short of the forecasted RMB 0.3663 by approximately 1.7%.
Core online travel agency revenue advanced 8.4% to RMB 4.3 billion, driven by higher accommodation and transportation bookings. Gross profit increased 9.6% to RMB 3.3 billion, with gross margin expanding to 66.7%. Core OTA operating profit totaled RMB 1.1 billion, supported by a 26.4% operating margin. Adjusted EBITDA rose 7.3% year-over-year to RMB 1.3 billion.
The company’s 12-month average revenue per user climbed about 10% to RMB 80, while cash and short-term investments stood at RMB 1.5 billion as of June 30, 2026. Q2 included RMB 58 million in one-off restructuring costs.
International business showed robust growth, with room nights sold overseas increasing more than 50% year-over-year. International hotel and air ticketing segments recorded consecutive quarterly gains, with international hotel room nights reaching a record high. The proportion of 3-star and above hotel bookings rose by approximately 3 percentage points, contributing to higher average daily rates.
Tongcheng Travel completed its acquisition of Dida Inc. on August 21, securing controlling ownership to enter the carpooling market. Wanda Hotels & Resorts, now fully integrated following its consolidation in October 2025, ranked 22nd in room count on the China Hospitality Association’s 2025 platform rankings. The eLong Hotel Technology platform placed seventh, supporting over 3,500 hotels in operation with more than 2,000 additional properties in the pipeline.
Stock performance reflected mixed sentiment, with shares declining 1.87% to $13.10, down $0.25 from the prior close. The 52-week range shows the stock trading 4.1% above its low of $11.67 and 48.4% below its high of $25.42.
Executives highlighted resilience in China’s mass-market travel segment despite macroeconomic headwinds, including elevated airfare fuel surcharges and extreme weather disruptions that weighed on long-haul travel in May and June. Marketing initiatives such as the "Fuel Free Wednesdays" campaign and a "regret-free card" for first-time international travelers were cited as contributing factors to sustained demand.
Tongcheng Travel, listed under ticker 0780 on the Hong Kong Stock Exchange, operates under the integrated brand of Tongcheng-Elong Holdings Ltd.
