Looking to attract a greater share of the rapidly growing China travel market, Marriott International Inc. has announced a new joint venture with Alibaba Group Holding, a popular Chinese e-commerce company.
In particular, the joint venture will see Marriott hotel inventory listed on Alibaba's travel platform, Figgy.
For Alibaba users, the partnership will mean easier-than-ever options for booking a room with the world's largest hotel company.
For Marriott, the partnership puts the brand in front the 500 million Chinese mobile users who are active across Alibaba's platforms. It also provides Marriott access to detailed consumer insights about those travelers.
For both companies, it also means a chance to tap into the most lucrative of all customers-ithe repeat traveler-iby linking loyalty programs.
"We are proud to join forces with Marriott International - combining our large-scale consumer base, leading-edge technology and consumer insights with their unparalleled hospitality expertise," said Daniel Zhang, Chief Executive Officer of Alibaba Group. "Together, we are elevating and redefining the travel experience for Chinese consumers to be more seamless and personalized as they embark on adventures to discover the world."
The venture could also, eventually, lead to an expansion of the number of Marriott properties offering wallet-free payment options through Alibaba's Alipay mobile payment system.
Marriott's agreement with Alipay, first introduced in 2015, allows guests to pay for their entire Marriott experience using nothing more than their smartphone. Or, they can opt to prepay for their entire stay before ever arriving at the property.
A 2014 study by the Chinese International Travel Monitor found that 59 percent of Chinese travelers rated "local payment options" as the second-most important feature a hotel should offer (right after free Wi-Fi.)
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A growing number of Marriott properties throughout Asia already accept Alipay. The hotelier also (previously) announced it plans to introduce Alipay at select properties beyond Asia as well.
According to Reuters, Marriott has 300 properties in China with another 300 under development throughout the nation. In total, it has more than 6,000 properties in 122 companies around the world.
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