"But for many hotels, visibility-and sometimes survival-comes at the expense of profits. That dynamic is now at the heart of Beijing's antitrust probe. Regulators allege Trip.com is abusing its market position, with analysts citing deflation across the sector as the government's main concern. Interviews with lodging operators, industry groups and travel consultants describe a system where constant price-cutting and opaque policies are eroding profitability, even as demand rebounds."
"For Gary Huang, running a five-room homestay in the scenic Huzhou hills near Shanghai was supposed to secure his family's financial future. Instead, he and other hoteliers in China's southeastern Zhejiang province say nightly rates have fallen to levels last seen more than a decade ago, as Trip.com's frequent discount campaigns force them to cut prices simply to remain visible on China's dominant booking platform."
"Trip.com has been central to China's post-pandemic travel rebound, connecting millions of travelers with small operators like Huang. Revenue per room-a key hotel metric-was flat across China in 2025, even as other Asian markets saw gains, according to Bloomberg Intelligence. Marriott International Inc.'s revenue per room in China fell 1% most of last year, while Hilton's China room revenue trailed its regional peers."
Domestic travel volumes have rebounded to record levels while average room rates have declined, squeezing hotel revenues across China. Many small operators report daily platform-led promotions that force repeated price cuts to maintain visibility, reducing margins for homestays and chain hotels alike. Regulators have opened an antitrust probe alleging market abuse and noting sector deflation as a primary concern. Revenue per room remained flat in 2025, and international chains saw China room revenue lag regional peers. Trip.com's stock dropped after the probe announcement while the company says it is cooperating. Operators and analysts cite opaque promotion policies as eroding profitability despite rising demand.
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