Recently, the Yunnan Tourism Homestay Association issued a decision via its official public account titled "Yunnan Tourism Homestay Association's Decision to Initiate Anti-Monopoly Legal Action Against OTA Unfair Competition." The move directly targets Trip.com Group Limited (TCOM).

The announcement stated that the association has appointed specialized legal counsel to begin evidence collection and legal analysis. Once sufficient evidence is gathered, the association will file a collective complaint on behalf of affected members with relevant authorities.

The Yunnan Tourism Homestay Association is a non-profit industry organization approved by the Yunnan Civil Affairs Department and jointly guided by the Yunnan Culture and Tourism Department and the Yunnan Commerce Department. This marks the first time since the Anti-Monopoly Law took effect in 2008 that an industry association has publicly encouraged its members to jointly report suspected violations by a major platform company.

Prior to this industry-led anti-monopoly action, Trip.com had already been criticized multiple times this year. On August 5, the Guizhou Provincial Market Supervision Administration summoned Trip.com and four other travel platforms for discussions, focusing primarily on price regulation rather than "exclusive dealing" practices. On September 17, the Zhengzhou Market Supervision Bureau took more targeted action by directly naming Trip.com, though again without explicitly addressing "exclusive dealing."

This time, the Yunnan Tourism Homestay Association's approach is fundamentally different. First, it directly accuses the platform of multiple suspected violations of the Anti-Monopoly Law, including "exclusive dealing." Second, unlike past disputes where individual businesses fought Trip.com alone, the association represents the collective will of hundreds of small and medium-sized enterprises. Its involvement signifies that the conflict has escalated from criticism to a formal legal process.

Trip.com recently released its Q3 2025 financial report, showing revenue of RMB 18.3 billion, up 16% YoY. Its net profit attributable to shareholders reached RMB 19.9 billion, including one-time gains from equity sales. Even excluding these, operating profits remained strong, with gross margins consistently above 80%—surpassing internet giants like Tencent and Alibaba and rivaling Kweichow Moutai.

In contrast, the hospitality sector is struggling. Beijing’s Bureau of Statistics reported that in H1 2025, the city’s 1,613 accommodation businesses saw revenue drop 7.3% YoY, with total profits plunging 92.9% to just RMB 59.8 million—equivalent to Trip.com’s single-day net profit. Listed company Jinjiang Hotels saw H1 net profit halve YoY, while Atour Hotel reported declines in all three key metrics: RevPAR, ADR, and occupancy rates, with continued pressure expected in Q3 and Q4.

Yet, tourism itself is thriving. According to the Ministry of Culture and Tourism, domestic trips in the first three quarters of 2025 rose 18% YoY to 4.998 billion, with spending up 11.5% to RMB 4.85 trillion. The question is: Where is the money going?

Trip.com’s dominance plays a key role. Analysts estimate its 2024 market share (by GMV) at 56%, rising to over 70% when including affiliated platforms like Qunar and Tongcheng Travel. With 63% of China’s hotel bookings coming from OTAs—and over 60% of independent hotels relying on OTAs for 70%+ of orders—Trip.com wields immense pricing and rule-setting power.

As a capital-light platform, Trip.com collects commissions regardless of hotel profitability. Public data shows its tiered commission structure: 10% for standard merchants, 13% for gold-tier, and 15% for exclusive partners. Some merchants report paying over 45% per order when adding promotional fees. However, Trip.com’s financial reports suggest a blended commission rate of just 4.4% in 2024, arguing it’s lower than global peers.

Combined with algorithmic pricing, these factors create Trip.com’s lucrative formula: dominance, capital-light operations, high commissions, and tech-driven efficiency. While profitability isn’t inherently wrong, a model built on industry-wide pain invites scrutiny.

Yunnan, a tourism powerhouse, could set a precedent. If this legal action gains traction, other regional associations may follow—posing a serious challenge to Trip.com. The real test has begun.