Can TikTok and Xiaohongshu Disrupt Online Travel Giants?

Can Short-Form Video Platforms Topple Travel Titans? TikTok and Xiaohongshu Challenge Traditional OTA Giants

The battle for travel booking is heating up, with short-form video platforms like TikTok (抖音) and Xiaohongshu vying for dominance against established online travel agencies (OTAs) like Trip.com (携程) and Qunar (去哪儿).

Data paints a compelling picture:

• Massive Scale: TikTok's local living services market is projected to reach 250 billion yuan, with the travel sector (酒旅) contributing 600 billion yuan in 2023. This figure is expected to surge to 900 billion yuan by 2024.
• Aggressive Expansion: TikTok launched its calendar booking function in May 2023, allowing users to book hotels directly within the app, bypassing traditional OTA platforms. In July, they elevated their travel business into a top-level department, signaling their commitment to this market.
• Influencer Powerhouse: Xiaohongshu has witnessed explosive growth in its travel influencer community, with a 672% year-on-year increase in travel influencers and a staggering 1221% rise in travel professionals in 2023 alone.

Lower Commissions: TikTok's competitive advantage lies in its lower commission rates compared to established OTAs. While they recently increased their hotel booking commission from 4.5% to 8%, it still remains significantly lower than the 15%-20% charged by leading OTAs like Trip.com and Qunar.

Market Share Shift: Interbank International predicts TikTok's travel market share will jump from 2% to 3% in 2023, while Trip.com gains 5 percentage points and Qunar loses 1 point.

Challenges for Traditional Platforms: While traditional OTAs like Trip.com and Qunar boast a strong supply chain network and partnerships with major hotel chains, TikTok and Xiaohongshu are aggressively targeting the mid-tier and budget travel segments, focusing on transportation, attractions, and independent/smaller hotels.

Adapt or Perish:

• Flying Pig's Response: Despite maintaining that its established supply chain gives it an edge, Flying Pig (飞猪) has acknowledged the challenge and launched a social platform with travel-related content. However, its current focus on individual travel experiences and basic guides lacks the dynamic engagement seen on TikTok and Xiaohongshu.
• Qunar's Countermoves: Qunar has formed a dedicated team for information flow content and partnered with Huawei to leverage their vast user base.

The Future Landscape:

Can short-form video platforms truly dethrone travel giants? The answer remains to be seen. While TikTok and Xiaohongshu have gained significant traction, they still need to prove their ability to compete in the high-end hotel market and build a robust supply chain network.

Traditional OTAs like Trip.com and Qunar are also evolving, recognizing the need to integrate social features and content marketing strategies to remain competitive. The travel industry is entering a new era of dynamic competition, where user experience, engagement, and personalized recommendations will ultimately determine success.