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JD.com Founder Liu Qiangdong Says New Hotel Development Plan Coming by Year-End
JD.com founder Richard Liu announced a new hotel development plan to be revealed by year's end, expanding the company’s reach in travel services. He emphasizes a focus on cost optimization rather than competitive pricing, highlighting JD Travel's benefits for hotels, such as zero commissions and partnerships that have led to a significant customer influx.
Key points
- Liu Qiangdong announced a new hotel development plan to be unveiled by the end of 2023.
- JD.com aims to expand its travel services following its entry into the food delivery market.
- Liu met with major hotel executives in Hong Kong to discuss collaborations.
- JD.com seeks to optimize costs through supply chain efficiency rather than initiating price wars.
- JD Travel, launched during the June 18 shopping festival, offers hotels up to three years of zero commission through 'Hotel PLUS Membership'.
- Partnerships, such as with Jinjiang Hotels, have strengthened JD’s position in the market.
- Hotels participating in the zero commission program reportedly source 50% of their customers from JD's platform.
Why it matters
- The move aligns with the growing trend of e-commerce companies diversifying into travel and hospitality services.
- This development follows a broader industry shift where tech companies leverage their platforms for services beyond traditional offerings.
- The trend of using digital platforms for booking and managing travel has accelerated, especially post-COVID-19.
JD.com's expansion into the hotel sector marks a significant shift towards integrating travel services with e-commerce platforms, reflecting current trends in the hospitality and tech industries.