Tongcheng Travel Hits 19.4B Revenue on AI, Mass Market Focus

HONG KONG – March 24, 2026 – Tongcheng Travel Holdings Limited has cemented its position as a dominant force in China's evolving travel landscape, announcing a robust 11.9% year-on-year revenue increase to RMB 19.4 billion (approximately $2.8 billion) for the fiscal year 2025. The impressive results, unveiled in its latest audited report, showcase a company successfully navigating the post-pandemic travel boom by strategically targeting China's vast mass market and leveraging cutting-edge artificial intelligence.

The Hong Kong-listed travel giant also reported a 22.2% surge in adjusted net profit to RMB 3.4 billion, coupled with a record-high 45.5 million monthly paying users. This performance is a testament to a strategy that goes beyond major hubs, diving deep into the burgeoning travel demand of China's lower-tier cities.

"After a period of recovery and reacceleration, China's travel industry transitioned toward quality-driven development," said Mr. Ma Heping, Executive Director and Chief Executive Officer of Tongcheng Travel. "In 2025, we capitalized on the industry tailwind... further strengthening our market position within the mass market."

Tapping China's Travel Heartland

A cornerstone of Tongcheng Travel's success is its laser focus on China's non-first-tier cities. While competitors often concentrate on saturated markets like Beijing and Shanghai, Tongcheng has cultivated a loyal following in the country's sprawling interior. The company disclosed that over 87% of its total registered users reside in these regions, which also contributed to around 70% of new paying users on its Weixin (WeChat) platform in 2025.

This strategy aligns perfectly with current market trends. Domestic tourism in China has not only recovered but is being reshaped by new consumer behaviors. Travelers, particularly younger demographics, are increasingly seeking authentic, cost-effective experiences in smaller cities known for their unique culture and slower pace. Industry data shows that searches for travel to lower-tier cities surged by over 40% in the past year, with actual tourist visits growing by more than 75%. Tongcheng has effectively positioned itself to capture this shift, serving over 2 billion travelers in the last twelve months.

The company's ability to thrive in these markets is supported by a diversified user acquisition model that heavily utilizes Tencent's Weixin ecosystem, alongside a standalone app that saw significant growth in daily active users throughout 2025. This multi-channel approach allows it to reach a broad demographic that is increasingly comfortable with digital-first travel solutions.

The AI-Powered Travel Revolution

Underpinning Tongcheng's market penetration is a deep investment in artificial intelligence, transforming the company from a simple online travel agency (OTA) to an "intelligent travel assistant." The company has integrated AI across its entire service chain to enhance both user experience and operational efficiency.

A key innovation is DeepTrip, an AI-powered travel planner launched in 2025. Integrated with advanced large language models, DeepTrip helps users craft complex itineraries, provides personalized recommendations, and facilitates direct bookings, all within a single interface. The technology is also used to power the company's "Huixing" system, an algorithm-driven tool that optimizes complex transportation routes, a crucial feature for travelers navigating the less-connected transport networks between smaller cities.

Customer service has also been revolutionized. Tongcheng reports that AI now handles the majority of user inquiries, with generative AI managing over 60% of online chats for accommodation and over 70% of phone consultations. This has not only improved response times but also freed up human agents to handle more complex issues. This aggressive adoption of AI places Tongcheng at the forefront of a technological arms race within the OTA sector, where competitors like Trip.com Group are also heavily investing in similar AI-driven assistants.

Beyond Bookings: An Expanding Hospitality Empire

Tongcheng Travel is also looking beyond its core OTA business, aggressively expanding into hotel management to build a more comprehensive travel ecosystem. This strategic diversification is paying off, with revenue from its "other businesses" segment—which includes hotel management—growing by a remarkable 34.4% to RMB 3.1 billion in 2025.

A significant catalyst for this growth was the successful consolidation of Wanda Hotels and Resorts, which bolstered Tongcheng's portfolio in the luxury and high-end hotel market. This move allows the company to capture a greater share of the accommodation value chain and cater to a growing consumer preference for high-quality lodging.

The expansion is further supported by its eLong Hotel Technology platform, which provides management and technological solutions to independent hotels. By the end of the first quarter of 2025, over 2,500 hotels were already operating on the platform, with another 1,400 in the pipeline. This two-pronged approach of acquiring major brands and empowering smaller hotels positions Tongcheng as a formidable player in China's vast and fragmented hotel industry.

A New Benchmark for Sustainable Growth

Distinguishing itself further, Tongcheng Travel has emerged as a leader in Environmental, Social, and Governance (ESG) performance. In 2025, the company achieved an MSCI ESG rating of AAA, the highest possible score, placing it in the top 5% of its global industry peers. This prestigious rating recognizes its strong practices in labor management, user data privacy, and corporate governance.

The company was also named an "Industry Mover" by S&P Global and was included in its Sustainability Yearbook for the third consecutive year. These accolades are more than just symbolic; they signal to investors a commitment to long-term, resilient growth and responsible business practices. In an era where capital is increasingly flowing toward sustainable enterprises, Tongcheng's stellar ESG credentials provide a significant competitive advantage and reinforce its image as a forward-thinking industry leader.

As the company looks toward 2026, it plans to double down on its successful strategies. With a firm grip on the mass market, a rapidly expanding hotel business, and a clear edge in AI innovation, Tongcheng Travel appears well-equipped to continue its trajectory and redefine what it means to travel in the digital age.