China’s hotel and travel industry is witnessing a transformation, with Meituan, the country’s tech-driven retail and service giant, leading the charge. The company’s Q2 2025 financial results highlight its success in leveraging AI technology, innovative loyalty programs, and cross-selling strategies to redefine how hotels and travelers interact with digital platforms. Despite some challenges in its core local commerce segment, Meituan’s strategic focus on the hospitality sector positions it as a key driver of growth in the country’s dynamic travel market.
Revenue and Profit Trends in Q2 2025
For the second quarter of 2025, Meituan posted a robust 11.7% year-on-year revenue increase, reaching RMB 91.8 billion, up from RMB 82.3 billion in the same quarter last year. However, the company faced a 75.6% decline in operating profit, dropping to RMB 3.7 billion, primarily due to intense competition in its local commerce sector, including food delivery and in-store services.
Even with the dip in profitability, Meituan’s management emphasized the company’s long-term vision: building a stronger ecosystem that supports sustainable growth in travel, hospitality, and lifestyle services.
Hotel and Travel: A Core Growth Engine
The hotel and travel division has emerged as a bright spot for Meituan, with record-breaking results in Q2 2025. During major travel events, such as Labor Day Golden Week, the platform saw unprecedented Gross Transaction Value (GTV) and a sharp rise in active merchant participation.
Hotels across China increasingly view Meituan as more than a booking platform. It is now a digital partner, helping properties strengthen their online presence, branding, and operational efficiency through advanced digital tools.
AI-Powered Innovation for Hotels
A standout in Meituan’s growth strategy is the introduction of Meituan Jibai, a cutting-edge AI-powered platform designed for hotel partners.
- Smart Pricing: The system analyzes real-time market data and demand trends to offer dynamic pricing recommendations, ensuring hotels remain competitive while maximizing revenue.
- Intelligent Inventory Management: AI tools help hoteliers allocate rooms effectively, reducing vacancy and optimizing operational workflows.
- Digital Business Assistants: These AI-driven assistants simplify hotel management, improve customer engagement, and enhance digital visibility.
This AI integration is a cornerstone of Meituan’s “Retail + Technology” strategy, which focuses on improving operational efficiency while enhancing customer experiences.
Loyalty Programs Fueling Engagement
Another major contributor to Meituan’s success is the Meituan Membership program, which now boasts a diverse portfolio of benefits spanning food delivery, retail, and hotel bookings. By expanding loyalty rewards into the travel segment, Meituan has driven higher user engagement and an increase in premium memberships.
In Q2 2025, over 10 million members upgraded their tiers, reflecting the growing popularity of travel benefits integrated into the loyalty ecosystem. This strategic move has strengthened cross-industry engagement, encouraging members to explore Meituan’s travel offerings alongside its other services.
Cross-Selling Success and High-Star Hotel Partnerships
Meituan’s ability to cross-sell services has significantly boosted bookings in its high-star hotel category. One of the most successful collaborations has been with Marriott Bonvoy, the loyalty program of the global hotel giant.
- 88% growth in Marriott hotel bookings year-over-year.
- A 148% surge in reservations by travelers under 30, highlighting Meituan’s appeal to younger, experience-driven customers.
This partnership not only strengthens Meituan’s presence in the premium travel market but also showcases its ability to leverage loyalty and digital integration to capture emerging demographics.
Ecosystem Synergy Through On-Demand Delivery
Meituan’s dominance in on-demand delivery supports a synergistic ecosystem where traffic from food delivery seamlessly translates into increased engagement with travel and hotel services. This flywheel effect reinforces Meituan’s value-for-money image, creating a network of interconnected services that attract repeat customers.
By offering a holistic experience, from meal delivery to vacation planning, Meituan solidifies its position as a one-stop platform for everyday needs and travel aspirations.
Market Outlook for 2025 and Beyond
Despite tighter margins in some sectors, the outlook for Meituan’s hotel and travel division remains optimistic. With a growing base of active users, expanding partnerships with international hotel chains, and increasing adoption of AI-powered tools by hoteliers, the company is well-positioned to capitalize on China’s evolving travel market.
Key factors likely to drive continued success include:
- Increased domestic and international travel demand.
- Rising popularity of premium and luxury travel experiences among younger travelers.
- Broader adoption of AI-driven operational tools in hospitality management.
Conclusion
Meituan’s strategic expansion in the hotel and travel industry is a clear reflection of its commitment to innovation and customer-centric solutions. By integrating AI, enhancing loyalty programs, and leveraging cross-selling, Meituan is reshaping how travelers in China plan, book, and experience their journeys.
As the company continues to refine its ecosystem, both merchants and travelers stand to benefit from smarter, more efficient, and highly personalized travel solutions. With the travel sector expected to grow rapidly in the coming years, Meituan’s position as a market leader in AI-powered travel solutions is set to strengthen, making it a key player in shaping the future of hospitality and tourism in China.
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