Last year, Meituan surpassed market leader Ctrip in hotel bookings, taking about a 45% share compared to Ctrip’s 22%. This means the category of “luxury” hotel on Meituan covers a wide range of accommodation options. As a newcomer, Meituan also has to dig into areas where needs are not yet met, such as putting online certain luxury hotel services like buffet and family-based recreations, in order to develop more revenue streams other than accommodation. Google has been blocked in China since 2010. The volume of daily booking is only 6% of that total.” He believes that only 20% of the accommodation industry supply is supplied on line, “which implies that the capacity of accommodation is so enormous that the industry could easily accommodate two Ctrips and twoMeituans.”. We are a platform that works together with merchants to serve consumers. In March 2018, Meituan clocked 22.7 million hotel nights booked, compared to Ctrip’s 11 million, according to Trustdata, a Chinese data monitoring platform. Meituan has amassed a large number of young users whose needs tend to have become more personalized, diverse and quality oriented. But while Western customers rely on search engines to find travel deals, Chinese customers tend to go directly to Ctrip or apps like Meituan to book trips. Ride-hailing in China, Taiwan, Mexico, Australia, Brazil, and Japan. While Ctrip is also a platform of sorts, its strategy is to focus entirely on travel. The luxury hotel segment is a key step for realising the ambition. To get a piece of that, Booking has to rethink its marketing strategies. For Ctrip, domestic travel is still most of its business, and lower-tier cities have showed a lot of potential for this business to grow. Meituan is more popular among smaller cities, and offers cheaper hotel rooms, whereas Ctrip tends to attract more affluent consumers from big cities like Beijing and Shanghai with its inventory of high-end hotels around the country and internationally. It set up a hotel tourism division in 2015 featuring four streams, and accommodation is one of them. ChinaTravelNews is a wholly owned subsidiary of. While Ctrip and Meituan-Dianping have many travel options for domestic hotels and flights in China, they lack's deep inventory of international travel … The mission of Meituan is “We help people eat better, live better ”. And providing more features (such as travel) makes the online platforms more valuable to the users -- creating a win-win proposition for Booking and its Asian partners. The commission rate it is getting from luxury hotels is just 10% on average, which is lower than the industry average of 12%-15% offered to OTAs. Meituan-Dianping is quickly becoming a dominant force in the business of online luxury hotel bookings in China. "But most of Meituan's room nights are booked by locals, like mahjong players … the average room night may only cost about 100 yuan, so even if there are a lot of room nights, it's difficult to make money.". Sun disputes these figures but Ctrip's earning results do not provide a break down of room night bookings. This all spells lots of growth for Booking coming out of Asia. Meituan cut into online hotel booking in 2012 through offering group buys, and expanded in the segments of budget hotels, hour-rate hotels and inns. Meituan takes on the battle by quickly expanding its business development team, which as nearly 2,000 people currently. Newcomer Meituan-Dianping may have overtaken travel specialist Ctrip in China’s hotel booking market, but Ctrip chief executive Jane Sun Jie is not concerned. Returns as of 10/29/2020. Meituan-Dianping has also reached agreements with Beijing Capital Tourism, Wanda Hotels, Empark Hotels and Resorts, and Shangri-La Hotels and Resorts. The company's partnership approach has enabled it to establish a strong presence in the region that should benefit it for years to come. As a consumer, you don't need to think about what to do next.". Image Via official website. In the three months ended June 30, Meituan said it booked 94 million domestic hotel room nights " a jump of nearly 30% compared to the same period last year. Its market capitalization topped $100 billion earlier this year — up from less than $200 million in 2001. Meituan started as a service that sold vouchers for services and entertainment online. And for the well-heeled consumer, Ctrip is working on offering luxury services such as intracontinental private jets, some of which Sun has personally tested. He said that while Booking wants to make a good financial return on its investments, “we are not a financial player or a hedge fund or a private-equity firm.”, “By historical standards, many valuations in China in the travel industry would appear to be high,” he said. Guo believes that only 20 percent of the total hospitality sector in China is available to book online, meaning there is still substantial growth potential for the online hotel booking industry. It merged with Dianping, a Chinese group-buying website, in 2015. Booking's equity investments in its Asian partners were as strategic as they were financial. Meituan-Dianping takes a booking commission rate, paid by the hotels, on every purchase which on average is 10 percent but some single hotels pay up to 18 to 20 percent. Through certain algorithms, the accommodation preference of users can be deduced from their spending habits on food and their consumption power. What's in it for the Asian platforms? And it is making a large bet on another frothy market: China’s crowded online travel space. However, Guo noted that most of Meituan’s customers had never stayed in a luxury hotel before and argued that the move actually increased the size of the market for Ctrip’s services. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Copyright (c) 2019. As of the second quarter of 2019, Ctrip derived more than 10% of its revenue from international businesses. Are Hong Kong’s global luxury hotel brands headed for an identity crisis? Will InterContinental’s Ultra-Localized Hualuxe Hotels Sink Or Swim In China? We believe a critical component of our success has been our core values: We must always choose to do the right things for our customers, and not the easy things for ourselves. Booking bought Ctrip stock. Younger and higher income users tend to book luxury hotels on the site and luxury hotels were identified by Guo as a key area of growth in the overall Chinese hospitality sector, online hotel booking business, and for Meituan-Dianping specifically. Meituan-Dianping is quickly becoming a dominant force in the business of online luxury hotel bookings in China. Booking invested $500 million in Didi stock. Market data powered by FactSet and Web Financial Group. This past year, 6 percent of total bookings on the company’s platforms were luxury bookings and bookings of luxury hotels on Meituan grew by 300 percent. "And then we can inform the hotel you booked that you are going to be late in arriving, to make sure that they save your room for you. CEO Glenn Fogel, 56 years old, a former investment banker who joined Priceline in 2000, is leading the firm’s push into China, the world’s largest source of tourism spending, and says the stakes it has purchased there are meant to help it gain a long-term foothold in a country where people overwhelmingly scout travel deals and book hotels and flight tickets using mobile apps. Meituan declined to comment on Sun's remarks. In March 2018, Meituan clocked 22.7 million hotel nights booked, compared to Ctrip's 11 million, according to Trustdata, a Chinese data monitoring platform. Sun said that in the aftermath of the 2017 Las Vegas shooting, Ctrip was able to reach people who booked through its platform within minutes to check on their safety. Moreover, 60 percent of new Meituan users are drawn to the site to book rooms at luxury hotels according to the vice president and hotel division general manager of Meituan-Dianping, Qing Guo. Both ridesharing companies have strong market positions and are still growing. That is how Meituan and Didi Chuxing became market leaders, but it is a strategy that Booking, a listed company, may find hard to stomach or defend to shareholders. InterContinental Hotel in Ning Bo. But its China holdings also complicate the landscape for Booking. Since sealing the deal with InterContinental in December, Meituan-Dianping has reached partnership with more well-known accommodation brands such as Beijing Capital Tourism, Wanda Hotels, Empark Hotels and Resorts and Shangri-La Hotels and Resorts. The total transaction amount of Meituan reached RMB 515.6 billion in 2018, with an increase of 44.3% over the same period of last year. In that year, Meituan also acquired travel booking service provider from Expedia’s TripAdvisor. Since the announcement, Ctrip's Nasdaq-listed shares have slid nearly 9%. Instead, Booking … In late September, Ctrip said in a filing that its largest stakeholder Baidu would be selling nearly a third of its Ctrip stake for US$1 billion. Sun believes that this end-to-end service, coupled with its round-the-clock customer service, is why travelers will keep coming back. These partnerships also helpMeituan-Dianping attract more high-end customers and connect with high-end markets. His investing interests include tech, consumer, and event-driven situations. Beijing Capital Tourism, ctrip, intercontinental, luxury hotels, Meituan, Meituan-Dianping, online hotel booking, online luxury hotel booking, shangri-la, wanda hotels. More than 130 million Chinese citizens traveled abroad last year, up 7 percent from the previous year, and they spent more than $115 billion, according to data from the China Tourism Academy, a government-backed think tank. Booking bought $450 million in Maituan Diaping stock. Its comeback has been spectacular, even if both its name and the name-your-own-price business model it pioneered are all but gone. Globally, it has invested heavily on online marketing, primarily with Google. Abundant sunshine. Under another partnership, will sell accommodations to users of Meituan’s app. In addition to drumming up more business for Booking, the partnerships have provided some nice gains on its equity investments. In response, Mr Guo said: “The number of hotel rooms that are available for online booking on Meituan and Dianping totals 12.5 million. While Ctrip is established, the Chinese startups Booking recently invested in have yet to turn a profit and are burning through cash.

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