Citi Reiterates Buy Ratings on Trip.com, Tongcheng Ahead of China's Autumn Holidays

Analysts at Citi have reiterated Buy ratings on two of China's leading online travel agencies, Trip.com (TCOM) and Tongcheng Travel (0780.HK), seeing a favorable risk-reward profile as their valuations hover near post-reopening lows.

Holiday Demand Seen as Key Catalyst

According to a Citi research note, the upcoming Mid-Autumn Festival and the October 1 Golden Week holidays are poised to be significant catalysts for the travel sector. The bank anticipates a surge in travel demand as more consumers take annual leave for extended vacations during these periods.

This optimistic outlook comes despite several near-term headwinds. Citi acknowledged that both companies face pressure from broader macroeconomic softness, extreme weather events, and elevated oil prices. However, the bank believes these risks have been largely priced into the current stock values.

Company-Specific Outlook

Citi provided distinct analyses for each platform, expecting Trip.com to show stronger relative performance in 2027.

Trip.com (TCOM)

Ad

Citi expects Trip.com to benefit from a mild recovery in outbound international travel and solid momentum from its global platform. While the firm flagged near-term volatility in hotel take-rates and pressure on domestic air and rail commissions, it anticipates that disciplined cost control will support margins.

Other analyst firms have also weighed in on Trip.com recently. Citing factors including an antitrust ruling and pressure on domestic travel, StoneX, Mizuho, and BofA Securities all lowered their price targets to $60 while maintaining their respective Buy or Outperform ratings.

Tongcheng Travel (0780.HK)

For Tongcheng, Citi noted that management has adopted a conservative tone for the second half of 2026. Despite this, the bank believes the company's margins will hold up well due to cost discipline. Tongcheng is expected to face continued pressure on its take-rates for domestic air and rail bookings.

In its most recent financial report for the second quarter of 2026, Tongcheng posted a 6.8% year-over-year rise in revenue to RMB 5.0 billion and a 9.8% increase in adjusted net profit to RMB 851 million.