Trip.com Q1 revenue up 17% but margin pressure and slower Q2 growth expected

Trip.com Group reported a 17% year-over-year revenue increase in Q1, driven by strong inbound travel and international bookings. However, rising costs outpaced revenue growth, putting pressure on profit margins. Management expects Q2 revenue growth to slow to 3%-8% with continued margin challenges, indicating a market normalization phase. The analyst maintains a neutral rating on Trip.com due to its current valuation and risk-reward profile compared to peers like Booking and Airbnb.