China’s tourism market is in a state of continual evolution, and the latest momentum is clearly coming from inbound travel. In the second-quarter earnings call, Trip.com, one of the country’s largest online travel agencies, noted a steep upswing in arrivals, backed by the Ministry of Culture and Tourism’s figures showing a 30 percent jump in inbound visitors during the first half of 2025. Trip.com went a further step, announcing that its inbound reservations had outpaced the previous year by over 100 percent. Such numbers illustrate the dual power of a growing international travel demand and the OTA’s expanding reach, while also re-configuring competitive dynamics across the digital travel landscape.

The surge in inbound tourism primarily comes from East Asia, with South Korea and Southeast Asia leading the way. 71 percent of inbound bookings were made from visa-free regions, offering a clear indication of the growing appeal of China as a short- and mid-haul destination. This presents a unique opportunity for Trip.com to expand its services and capture a larger share of the inbound tourism market, particularly from neighbouring countries in East Asia.

Growing Potential in Inbound Tourism

Despite the impressive growth, Trip.com noted that inbound tourism still represents a small percentage of China’s GDP, less than 0.5 percent, compared to 1-2 percent in more mature markets. This highlights the significant growth potential for inbound tourism in China, with digital platforms like Trip.com poised to capitalise on the increasing demand for regional travel.

The rise in inbound visitors, especially from East Asia, is part of a broader trend of lower-cost, more frequent travel within the region. For these travellers, trips to China are often more affordable and accessible compared to long-haul destinations like Europe or the United States. As East Asian travellers opt for more frequent, short-haul travel, platforms like Trip.com are ideally positioned to provide one-stop solutions for booking flights, accommodation, and activities.

Shifting Dynamics in OTA Competition

As Trip.com benefits from inbound tourism growth, global OTAs such as Booking.com and Expedia face challenges in competing for the East Asian traveller market. These platforms, which dominate in Europe and the United States, struggle with attracting the same level of engagement from East Asian travellers due to the high-frequency, low-budget nature of their trips. This makes it harder for platforms like Booking.com and Expedia to cultivate habitual app usage from this demographic, giving Trip.com a significant advantage in the short- and mid-haul travel segments.

Trip.com’s strategy focuses on enhancing its digital platform to capture this expanding market, leveraging its user-friendly interface and AI-driven services to offer more seamless experiences for travellers in the region. The company is increasingly positioning itself as the go-to platform for East Asian travellers looking to explore China, offering easy access to visa-free bookings and localised services that meet the needs of these tourists.

Strategic Focus on Regional Travel

With East Asian travellers dominating inbound tourism, Trip.com is strategically focusing on strengthening its position in the regional travel market. The company is enhancing its platform to cater to the unique needs of this demographic, including affordable travel options, flexible bookings, and easy access to essential services like local tours and activities. This move is expected to further solidify Trip.com’s dominance in the Chinese market as inbound tourism continues to grow.

In contrast, long-haul travel to Europe or the United States remains high-budget and low-frequency, making it less profitable for OTAs like Booking.com and Expedia to maintain strong relationships with these travellers. Trip.com’s focus on short-haul trips and easy accessibility positions it as a strong contender in the region, while global OTAs may struggle to adapt to the changing needs of East Asian travellers.

A Promising Future for Inbound Tourism in China

Looking ahead, China’s inbound tourism presents a growing market for both local and international OTAs. As Trip.com continues to expand its services for regional travellers, the company aims to tap into the increasing demand for affordable, frequent travel within East Asia. With a competitive edge in the short- and mid-haul travel segments, Trip.com is well-positioned to capitalise on this growth and shape the future of regional tourism in China.

As the industry continues to evolve, Trip.com will likely play a crucial role in redefining the travel habits of East Asian tourists and strengthening China’s position in the global tourism market. The growing inbound tourism market will not only provide new opportunities for Trip.com but also set the stage for other OTAs to adjust to these changing dynamics and adapt their strategies accordingly.

Trip.com’s Role in the Changing Travel Landscape

The current boom in inbound tourism to China, especially among East Asian markets, gives Trip.com a remarkable window to strengthen its leadership among online travel agencies. With regional travellers gravitating toward brief, repetitive getaways, Trip.com can tailor offerings that emphasise same-week discounts, curated content for each city, and a seamless booking funnel that caters to a two-day schedule. Moreover, its enhanced digital ecosystem leverages real-time analytics and generative AI to deliver personalisation at scale, making it unusually nimble in responding to shifting user behaviours.

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