In Brief: China’s online travel agency sector is entering a period of slower expansion, increased regulatory oversight and technology-driven change. Large platforms including Trip.com, Tongcheng, Fliggy, Meituan and JD.com face pressure to protect market share as consumers use AI tools to compare travel options and authorities target sustained price competition and restrictive supplier practices.
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AI, Price Competition and Antitrust Action Reshape China’s OTA Market – Image Credit Unsplash
Travel Market Growth Continues at a Slower Pace
China’s travel market continued to expand in 2025, but growth has moderated. Deflationary pressure in the consumer economy has tempered headline growth, while travel supply and demand have remained resilient.
Online travel bookings continue to gain share as mobile internet use rises in lower-tier cities. Online travel agencies, known as OTAs, and travel suppliers are also seeking to retain customers through mobile applications and improve booking conversion rates.
Artificial intelligence tools are increasingly being used to help consumers search for destinations, compare prices and plan itineraries, potentially changing how travelers research and book trips.
China’s OTA market has become more concentrated over the past decade. The largest companies built scale and market influence that helped them withstand the pandemic-era collapse in travel demand and benefit from the subsequent reopening.
Revenue Forecasts Point to Continued Expansion
China’s OTA sector is expected to generate gross revenue of $60.9 billion in 2025, compared with $51.9 billion in 2023, the first year after China’s post-pandemic reopening. Gross revenue is projected to reach $82.2 billion by 2029.
The competitive environment is becoming more difficult as several large companies pursue customers in different travel segments while growth slows and profitability expectations weaken. Companies are competing through discounts, loyalty programs, traffic allocation and other commercial strategies, pressuring margins and supplier terms.
China’s government has sought to limit what it describes as “neijuan,” often translated as involution. The term refers to zero-sum competition, including sustained price discounting and practices that place unfair pressure on suppliers.
Trip.com Faces Antitrust Penalty
Trip.com, China’s largest OTA, was fined $763 million in July 2026 after a six-month investigation into violations of China’s Anti-Monopoly Law. The case involved illegal pricing practices, traffic allocation and exclusivity restrictions in agreements with hotel suppliers and was China’s first antitrust case involving an OTA.
Accommodation reservations accounted for 42% of Trip.com’s annual revenue in 2025.
AI Tools May Change Consumer Behavior
Travelers using AI trip-planning tools are becoming more informed and demanding about value, service standards and trip quality. Booking windows are becoming shorter and more volatile.
These changes affect pure OTA companies as well as travel services offered by larger technology groups. Fliggy is linked to Alibaba, while Tongcheng’s largest shareholders are Trip.com and Tencent. Meituan and JD.com operate mobile marketplaces that include travel-related services.
Social commerce platforms such as Douyin and Xiaohongshu provide alternatives for travel discovery and purchasing. Their businesses align with travel but do not rely on travel revenue.
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