Meituan Reports Record-Breaking Growth in Hotel and Travel Sector, Fueled by AI Innovation and Strategic Partnerships

Published on August 30, 2025

China’s Meituan has posted remarkable growth in its hotel and travel division, setting new records in the second quarter of 2025. This success is largely attributed to the company’s strategic focus on integrating artificial intelligence into its offerings and forming high-impact partnerships. By enhancing its technological capabilities and expanding its reach in the high-star hotel market, Meituan has strengthened its position in China’s competitive travel industry, while also attracting a younger demographic through targeted initiatives and innovations.

Meituan’s second-quarter (Q2) 2025 financial results reveal a strategic focus on leveraging its technological capabilities and expansive ecosystem to strengthen its hotel and travel sectors. Despite challenges in the broader local commerce market, Meituan is prioritising long-term value creation by enhancing user loyalty and empowering merchants through innovative artificial intelligence (AI) solutions.

Resilience Amidst Challenges

While Meituan’s core local commerce segment faced significant setbacks, primarily due to “irrational” competition, the company’s strategy remains centred on sustaining long-term growth. This segment, which includes food delivery, Meituan Instashopping, in-store services, and hotel and travel businesses, experienced a year-over-year operating profit decline of 75.6%, dropping to RMB 3.7 billion. However, the company still saw a 7.7% year-over-year revenue increase in this segment, which rose to RMB 65.3 billion.Operating margins fell by 19.4%, settling at 5.7%.

Despite these challenges, Meituan’s overall performance for the quarter was strong. Total revenues increased by 11.7%, reaching RMB 91.8 billion compared to RMB 82.3 billion during the same period in 2024.

Record-Breaking Hotel and Travel Performance

CEO Wang Xing highlighted the impressive performance of Meituan’s hotel and travel division during Q2, which set new records in both annual active merchants and Gross Transaction Value (GTV) during the Labor Day Golden Week. These achievements underscore the success of Meituan’s continued investment in the travel and hotel sectors, marking a pivotal moment in its business evolution.

Xing explained that this record performance is a result of the company’s relentless push to enhance its AI-powered tools for merchants. These innovations are being rolled out progressively across the platform, aimed at streamlining operations and improving the digital presence of hotels. For example, AI-driven business assistants are being integrated into merchant interfaces, helping hoteliers optimise store page designs, simplify management tasks, and leverage digital assets like user reviews and images to strengthen their brand.

AI-Powered Solutions for Hotels

A central element of Meituan’s approach in the hotel industry is the introduction of Meituan Jibai, an artificial intelligence solution tailored specifically for hotel operators.This powerful tool offers data-driven insights, including intelligent pricing recommendations and dynamic inventory management, which help hotels optimise revenue and enhance operational efficiency. The introduction of Meituan Jibai is part of the company’s broader “Retail + Technology” strategy, aimed at providing merchants with cutting-edge solutions that improve the service industry’s overall efficiency.

Driving Growth Through Loyalty and Cross-Selling

Central to Meituan’s growth strategy is the Meituan Membership program, which serves as a powerful engine for cross-selling and deepening user engagement. The program offers a variety of benefits across a wide range of services, including food delivery, in-store dining, retail, hotel and travel, medical services, and bike-sharing. Xing reported that in Q2 alone, 10 million net members upgraded their membership tiers, further solidifying Meituan’s position as the go-to platform for consumers seeking deals and local services.

The rotating benefits within the Meituan Membership program have significantly boosted cross-sales, resulting in increased engagement across the company’s service offerings. By continuously diversifying and expanding its membership benefits, Meituan has strengthened its ability to retain users while encouraging them to explore a broader range of services.

Strategic Partnerships and the Flywheel Effect

Meituan’s strategic partnership with global hotel brands highlights the success of its loyalty-driven business model. The company’s collaboration with Marriott Bonvoy, which launched this quarter, has already shown remarkable results. On the first day of the partnership, bookings for Marriott hotels on Meituan’s platform increased by 88% year-over-year, with bookings from younger users (under 30) surging by 148%. This collaboration highlights Meituan’s increasing influence in the luxury hotel market and its enhanced capacity to engage a younger demographic.

The company’s dominance in on-demand delivery, particularly in the food delivery space, creates a powerful “flywheel effect” that drives cross-segment growth. As Meituan’s food delivery service continues to gain traction, it helps strengthen its image as a value-for-money provider, which, in turn, drives incremental transaction growth in other areas. The company’s tailored promotions and long-term loyalty benefits further enhance user engagement, reinforcing the strength of the Meituan Membership program and its ability to foster collaboration across Meituan’s diverse service offerings.

China’s Meituan has achieved significant growth in its hotel and travel sector, driven by AI advancements and key partnerships, positioning itself as a leader in the industry and appealing to a younger audience.

Meituan’s Q2 2025 financial results reflect a strategic focus on using advanced AI technologies and loyalty programs to drive long-term growth in its hotel and travel business. By enhancing its merchant tools, fostering partnerships with global brands, and strengthening cross-selling efforts through its membership program, Meituan is positioning itself for continued success in an increasingly competitive market. Through its innovative approach to technology and customer engagement, Meituan is well on its way to becoming a dominant force in China’s hospitality and travel industries.