2023-11-29
In a pivotal segment of the 2023 WTA • Xianghu Dialogue titled “Breaking the Mould&Establishing the New: Tourism Defines the Future”, Mr. Ray WANG, CEO of Zhejiang Haozhu Network Tech. Co., Ltd., shared his insights on the “The Value of Platforms: Leveraging Digitalization”.
Here are excerpts from his speech:
Founded in 2017 as a joint venture between Alibaba and Marriott International, Inc., Haozhu has been at the forefront of online digital services for hotels and tourism. Operating on the Fliggy platform, our mission is to deeply integrate the cultural and tourism industry with the internet, embedding digital technology into our solutions. Focusing on customer value, we utilize technologies to help hotels and cultural tourism enterprises expand their direct sales channels, capture valuable customers, and consolidate user and brand assets, thereby redefining customer experience and the future of travel.
Haozhu has evolved through two significant phases. The 1.0 phase, pre-pandemic, leveraged the internet’s benefits through online platform bookings. The 2.0 phase, post-pandemic, saw a strategic shift from traffic to user operations, combining technology with online and offline operations to better match supply and demand, enhancing user value and engagement.
Over five years, we have explored various models, transitioning from internet big data models to a Direct-To-Consumer (DTC) approach. The DTC model focuses on comprehensive consumer reach and digital operations. Its core lies in building connections, increasing user engagement, and using technology to reduce operational costs, thereby enhancing investment returns. We have employed various technological methods, including big data dashboards and AR technology, to improve operational efficiency and service quality. Through content connection and sharing, we have achieved multi-end distribution, optimized user experience, and improved supply-demand matching. To date, our Fliggy flagship store has contributed over 12 million members to Marriott International, Inc, with over 90% of orders coming from these members.
In terms of merchant and platform collaboration, we emphasize a shift from cooperative coexistence to cooperative win-win scenarios. The traditional zero-sum game mindset is gradually being replaced by a symbiotic model, with the platform playing a more significant role in integrating inventory and price management. We advocate for a “thousand faces for a thousand people” or “a thousand faces for one person” model based on demand profiling, building long-term, reusable relationships for better matching of supply and demand, thereby enhancing user value. Post-pandemic, the consumption habits feature rationalism and realism, focusing more on the emotional value and connection of brands. Hence, we emphasize the emotional value of brands, achieving sustainable brand development through long-term emotional connections.
Finally, I would like to reemphasize the importance of digital operational capabilities for businesses. By establishing a layout with multiple networks, channels, and touchpoints, we can reduce costs, improve efficiency, and achieve comprehensive outreach to our core users. Digital operations also involve the transformation of the service industry, evolving from a transactional platform to a service fulfillment platform, enhancing service effects in a visual manner. In essence, merchants and platforms exist in a symbiotic relationship. The application of digital scenarios can increase connections with core users, reduce transaction costs, improve workforce efficiency, and maintain continuous connections with core users and valuable consumers.