The company plans to leverage its efficient supply chain management system, which can reduce hotel operating costs, and attract customers from related services.
JD.Com, China’s leading e-commerce giant, is entering the hotel and tourism market, aiming to leverage its robust supply chain infrastructure and large user base. In a letter to hoteliers, the company said it will offer supply chain services to help hospitality businesses reduce operational costs.
As part of its entry strategy, JD.Com is offering hotel partners up to three years of zero commissions through its new JD Hotel Plus Membership Program. The approach mirrors the company’s earlier launch of its food delivery platform, JD Takeaway. Founder Richard Liu said JD aims to cut hotel and restaurant operating costs by up to two-thirds.
According to JD.Com, it serves more than 800 million high-spending users nationwide and has deep alliances with 30,000 large and 8 million small and medium-sized suppliers.
JD.Com's e-commerce users and partners greatly overlap with the core customer base of four-star-plus hotels, while their frequent consumption habits can generate additional demand for travel and related services, the company said in the letter.
This move follows Liu’s recent admission that JD.Com had lacked innovation over the past five years, describing the period as “lost.” He announced plans to roll out six new projects soon, including a global stablecoin. JD.Com’s revenue rose at its fastest pace in three years in Q1, fueled by new business lines like food delivery and a recent acquisition in consumer finance.
Recruitment efforts are already underway, with JD.Com reportedly hiring travel industry professionals, particularly from firms like Ctrip and Meituan. The company is offering triple salaries for product managers, system architects, aviation operations, and other core roles.
Analysts view the expansion as a strategic upgrade rather than a new direction. JD.Com has previously invested in travel agencies like Tuniu and worked with Ctrip. Its mature supply chain could give it an edge, but experts warn that the tourism market is highly competitive and may trigger price wars as JD.Com takes on entrenched players.
Source: Yicai Global
