TCOM - Why Trip.com Group (TCOM) Shares Are Falling | Benzinga

Trip.com Group Ltd (NASDAQ:TCOM) shares are trading lower by 4.16% to $48.18 Monday morning. Following China’s announcement of a lower-than-expected GDP growth of 4.7% for the second quarter, several Chinese stocks are experiencing a decline. Analysts had predicted a growth rate of 5.1%.

Economic growth is closely tied to consumer spending power. When the economy slows, consumers tend to tighten their belts, reducing discretionary spending, including on travel. Trip.com, as an online travel agency, relies heavily on consumers having disposable income to spend on travel and vacations.

Economic slowdowns also affect corporate spending. Companies cut costs by reducing business travel budgets. This impacts Trip.com’s revenue from business travel bookings.

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