JD.com (JD) Launches Zero-Commission Hotel Program, Disrupting Travel Sector

JD.com, Inc. (NASDAQ:JD) is one of the 10 best AI stocks to buy according to billionaire David Tepper. On June 18, JD.com issued an announcement that sent ripples through China’s online travel and services industry. In the announcement, the company said that hotel merchants joining its JD Hotel PLUS Membership Program will enjoy up to three years of zero commission.

JD.com (JD) Launches Zero-Commission Hotel Program, Disrupting Travel Sector

A close-up of a customer using the company’s e-commerce platform whilst shopping online.

The open letter to hotel merchants was JD.com’s way of launching a deeper foray into China’s hotel and travel industry. JD.com stated it will focus on providing supply-chain services to lower operational costs and enhance guest experiences. The company’s founder, Richard Liu, has emphasized that the core logic is “supply chain optimization” to compress backend costs.

This announcement dealt a blow to major players in the sector. For instance, Trip.com Group, China’s leading online travel agency, saw its shares plunge approximately 5% in Hong Kong trading. Similarly, Meituan, which offers food delivery and travel-booking services, saw its stock slide nearly 4%. Other online travel platforms like Tongcheng Travel also experienced significant drops, with some falling over 9%.

JD.com, Inc. (NASDAQ:JD) is a Chinese e-commerce and supply chain technology company. It operates through segments like JD Retail, JD Logistics, JD Health, JD Industrials, and JD Technology. The company sells various products, including electronics, home appliances, groceries, apparel, and healthcare items, through its online and offline platforms. JD also provides logistics and cloud- and AI-driven supply chain services.

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Disclosure: None.