Trip.com Group (Trip.com Group) Gross Margin % : 82.05% (As of Sep. 2023)

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What is Trip.com Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Trip.com Group's Gross Profit for the three months ended in Sep. 2023 was $1,545 Mil. Trip.com Group's Revenue for the three months ended in Sep. 2023 was $1,883 Mil. Therefore, Trip.com Group's Gross Margin % for the quarter that ended in Sep. 2023 was 82.05%.

Warning Sign:

Trip.com Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.2%.

The historical rank and industry rank for Trip.com Group's Gross Margin % or its related term are showing as below:

TCOM' s Gross Margin % Range Over the Past 10 Years
Min: 71.41 Med: 77.26 Max: 82.54
Current: 81.76

During the past 13 years, the highest Gross Margin % of Trip.com Group was 82.54%. The lowest was 71.41%. And the median was 77.26%.

TCOM's Gross Margin % is ranked better than
88.76% of 765 companies
in the Travel & Leisure industry
Industry Median: 43.19 vs TCOM: 81.76

Trip.com Group had a gross margin of 82.05% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Trip.com Group was -1.20% per year.

Trip.com Group Gross Margin % Historical Data

The historical data trend for Trip.com Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Trip.com Group Gross Margin % Chart

Trip.com Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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79.33

77.99

77.04

77.48

81.75

Trip.com Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															76.15	82.20	82.16	82.05	80.53

Competitive Comparison of Trip.com Group's Gross Margin %

For the Travel Services subindustry, Trip.com Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Trip.com Group's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Trip.com Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Trip.com Group's Gross Margin % falls into.

Trip.com Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Trip.com Group's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	2227	/	2874.335
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2874.335 - 647.332)	/	2874.335
	=	77.48 %

Trip.com Group's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	1544.7	/	1882.733
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1882.733 - 338.042)	/	1882.733
	=	82.05 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Trip.com Group (NAS:TCOM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Trip.com Group had a gross margin of 82.05% for the quarter that ended in Sep. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Trip.com Group Gross Margin % Related Terms

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Trip.com Group (Trip.com Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Trip.com Group Ltd (NAS:TCOM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

TRPCF:USA 09961:Hong Kong 0I50:UK CLVB:Germany CLVB:Germany CLV:Germany CLV:Germany CRIP34:Brazil

Address

968 Jin Zhong Road, Shanghai, CHN, 200335

Website

https://www.ctrip.com

Trip.com is the largest online travel agent in China and is positioned to benefit from the country's rising demand for higher-margin outbound travel as passport penetration is only 12% in China. The company generated about 78% of sales from accommodation reservations and transportation ticketing in 2020. The rest of revenue comes from package tours and corporate travel. Prior to the pandemic in 2019, the company generated 25% of revenue from international business, which is important to its margin expansion. Most of sales come from websites and mobile platforms, while the rest come from call centers. The competes in a crowded OTA industry in China, including Meituan, Alibaba-backed Fliggy, Tongcheng, and Qunar. The company was founded in 1999 and listed on the Nasdaq in December 2003.