TCOM
China fines Trip.com $700 million for abusing online travel dominance
Article Summary
SELL- Trip.com Group Ltd ADR (NASDAQ: TRIP) was fined $770 million after China's market regulator found Trip.com Group Ltd ADR abused its dominant position in the country's online hotel-booking market.
- The State Administration for Market Regulation confiscated 1.66 billion yuan in illegal gains and imposed an additional fine of 3.52 billion yuan for securing exclusive agreements with some hotel operators intended to give the platform access to lowest room prices across online booking services.
- The company was also ordered to refund 122 million yuan in booking deposits that authorities said had been withheld from hotel operators.
- Trip.com is China's largest online travel platform and operates several major booking brands, including Ctrip, Skyscanner and Qunar, with services covering hotels, flights, package holidays and corporate travel.
- The penalty follows an antitrust investigation launched in January after complaints that the company imposed unfair conditions on hotel operators and interfered with pricing.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 19.3% | 25% | 60.0 ptsModerate (19.3%) - Decent growth |
| EPS Growth Next 5Y ? | -11.5% | 25% | 0.0 ptsNegative (-11.5%) - Declining expectations |
| Target Price Upside ? | 39.3% | 20% | 85.0 ptsLarge Upside (39.3%) - Target: $60.79 vs Current: $43.64 |
| Gross Margin % ? | 80.3% | 15% | 100.0 ptsExceptional (80.3%) - Strong pricing power |
| Drawdown from 52-Wk High ? | -44.8% | 15% | 80.0 ptsSolid Dip (-44.8%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About TCOM
- Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours, in-destination, corporate travel management, and other travel-related services in China and internationally.
- It acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services.
- The company also provides travelers bundled packaged-tour products, such as group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services.
- In addition, it offers integrated transportation and accommodation services; ticket, activity, insurance, visa, and tour guide services; and user support, supplier management, and customer relationship management services; and in-destination products and services.
- Further, the company provides Trip.Biz, a digital first, full-service, corporate travel management business which provides technology-enabled solutions for organizations managing business travel.
- Additionally, it offers online advertising and financial services, such as marketing planning and travel media services; Omni-Channel Touchpoints for Users; and Open Platform for Ecosystem Partners.
- It operates under the Ctrip, Qunar, Trip.com, Travix, Travelfusion, and Skyscanner brand names.
- The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019.
- Trip.com Group Limited was founded in 1999 and is based in Singapore.