Jin Jiang International Hotels recently announced that it has drawn up a framework for cooperation with the popular Chinese travel website Lvmama and that both parties will jointly design and launch holiday packages that leverage their resource advantages. Following on the hotel group’s strategic investment in the travel website, taking the next step by partnering to offer holiday packages is a step towards deepening the cooperation to an operational level.
Jin Jiang to invest in Joyu Group: complementary online and offline resources
In June of this year, Jin Jiang International Group formally signed an agreement whereby the hotel group would provide 500 million yuan in capital to Joyu’s Lvmama, and, in doing so, become Joyu’s newest strategic investor. “While our peers have opted to cooperate with the internet giants in terms of capital and for the internet traffic these platforms attract, we have decided to partner with Jin Jiang International Group in order to maximize the advantages of a full integration with offline resources,” Hong Qinghua, Chairman of Joyu Group, the parent company of Lvmama said. “Lvmama will use Jin Jiang Group’s strong capital resources and practical operational capacity, accumulated over years of experience, as part of the effort to become China’s most powerful ‘online to offline’ organization in the tourism sector which, in this case means, taking advantage of the internet and other online channels to provide a ‘one stop shopping’ platform for the provision of travel products and services.”
With increasing Internet penetration, there is still much room for development of the online travel industry. Lvmama is not only a comprehensive online travel agency whose core business is DIY travel planning, but also a pioneer in setting up an e-ticket reservation system in China. For the Jin Jiang Group, which boasts robust networks of hotels as its resources, the strategic investment in Joyu Group will give the group access to the latter’s online platform resources. Business integration will enable both sides to complement each other’s resources for mutual benefit.
Integrating resource advantages: the launch of a series of winter vacation packages
Under the agreement reached between the partners, the Lvmama travel website plans to launch winter packages in partnership with 18 Jin Jiang International hotels located in Shanghai, Nanjing, Changzhou, Yangzhou, Zhenjiang and Anji County as well as at other key destinations in China. The three winter holiday packages aptly named “Romantic Road Trip With Your Significant Other”, “Family Vacation To Warm The Heart”, and “Lovers’ Vacation”, with each package highlighting a popular and important aspect of time spent with the important people in one’s life ? using the benefit of car ownership to roam where one pleases with one’s loved one, spending quality time with the family or having a memorable vacation with that most important person. Lvmama is the place to arrange and buy the entry tickets to the local attractions and other places of interest, while the 18 hotels, available on the same platform, will be where to reserve the fine dining experiences, spa services and holiday packages.
Mr. William Cai, Director of Sales & Marketing at Jin Jiang International Hotels stated: “Lvmama’s ‘hotel + ticket + X’ system which lets the prospective traveler design their own DIY itinerary enjoys a considerable advantage in the industry and we hope that the bilateral cooperation will offer new avenues for the expansion of the Jin Jiang group of hotels and raise the visibility of the Jin Jiang brand, as well as help the group meet the demands among an ever increasingly sophisticated public for high quality and personalized hotel services.”
“Jin Jiang International Hotel Management is a leader in hospitality management while the Lvmama travel website is a leading independent travel advice and booking platform. The strong combination of Jin Jiang and Joyu Group and the strategic operational cooperation between the two sides are certain to benefit both.” Lymama divisional general manager Chen Jin added, “Jin Jiang International Hotels will be the priority strategic partner for Lvmama and is sure to deliver a high quality leisure experience to the vast number of users that depend on Lvmama for their travel planning. Through this cooperation, both sides expect to achieve a high level of integration of their respective resource advantages to create a closed loop ecosystem within China’s tourism industry chain.”