China's Tongcheng Travel Q2 revenue rises 6.8% on accommodation growth, hotel management strength

Tongcheng Travel Holdings

24/08/2026 09:42

Overview
China online travel agency's Q2 revenue rose 6.8% yr/yr
Adjusted net profit for Q2 grew 9.8% yr/yr
Transportation ticketing revenue declined due to weaker travel demand and higher airfares

Outlook
Company notes subdued travel demand due to extreme weather and fluctuating fuel costs
Tongcheng maintains a positive long-term outlook for China's travel industry
Company to focus on core OTA business, international expansion, and AI-driven efficiency

Result Drivers
ACCOMMODATION GROWTH - Revenue from accommodation reservation services rose 8.0% yr/yr, mainly due to stable growth in average daily rates and hotel room nights sold, and increased sales of higher-star hotel rooms
TRANSPORTATION HEADWINDS - Transportation ticketing revenue fell 2.3% yr/yr, mainly due to decreased demand and higher airfares
OTHER SEGMENT EXPANSION - Revenue from other businesses grew 35.7% yr/yr, driven by hotel management, advertising, ancillary user services, and attraction ticketing

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 4.99 bln
 
Q2 Net Income Attributable
 
RMB 631.90 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the leisure & recreation peer group is "buy"
Wall Street's median 12-month price target for Tongcheng Travel Holdings Limited is HK$22.00, about 64.8% above its August 21 closing price of HK$13.35
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Aug 21 - China's East Buy Holding FY profit jumps on private-label, livestreaming growth
Aug 21 - China's Tongdao Liepin Group interim revenue rises on business customer growth
Aug 24 - Typhoon Narra wreaks havoc in China, Vietnam as rains lead to floods

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-24/f0827859-f9eb-44ba-ba72-42463e4f2828.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)