“Before you travel, visit Mafengwo first”

Founded: 2010, in Beijing, China

Category: Internet, Travel

Primary office: Beijing, China

Core technical team: Beijing, China

Status: Private

Employees: 501-1000

Amount raised: $503 million (5 rounds – 2019)

OVERVIEW

  • Connects personalized travel guides and reviews with travel product suppliers from all over the world
  • Provides unique travel experience for users

 

PERFORMANCE METRICS

  • Estimated revenue: $1M – $10M
  • Valuation: $2 billion

 

ACHIEVEMENTS

  • Registered users: 130 million
  • Cumulative reviews: 760 million
  • 38,000+ travel products suppliers
  • Helps more than 100 million travelers develop self-guided travel plans annually
  • Ranked No.138 on Hurun Global Unicorn List (2019)

Sells

  • VIP membership card – Exclusive services and discounts (e.g., airport VIP lounge, high-speed rail)
  • Air tickets, hotel reservations, car rental, phone cards, restaurant reservations through the online travel mall

Channels

  • Online travel mall
  • User friendly Interfaces – desktop, mobile and web
  • New user coupon package
  • Social media promotions (e.g., Weibo, Xiaohongshu, Wechat, and Douyin)
  • Multi-channel advertising (e.g., TV, video websites with high traffic, cinemas)
  • Reviews shared amongst tens of millions of users
  • Celebrity endorsements

Competencies

  • Founder-led Management team
  • Combining User Generated Content (UGC) and self-guided tour trading platform
  • Enacting “know” to “buy” one-top services: covers almost the entirety of user travel services
  • Application of big data analytics and mobile internet to perform in-depth and multi-dimensional research on the travel industry, make more accurate and forward-looking predictions on the market, and provide users with high-quality and personalized products and services
  • Making complex travel decisions, reservations, and experiences simple, efficient, and convenient
  • Supporting social features (e.g., messaging and offline interactions) to strengthen user connections

Resources

Assets

  • Self-guided tour of 60,000 tourist destinations around the world
  • Large user base and high user stickiness
  • Accurate reviews of scenic spots, restaurants, hotels and other information shared by tens of millions of users
  • Technology support from GrowingIO to perform in-depth analysis and indicator building
  • Data research center (analyzes and sorts data of registered users, and regularly releases data reports on user behavior, self-guided travel and outbound travel)
  • POI (Point of Interest) from UGC helps structure travel notes into data
  • Partners with UnionPay International: offer users prompt and convenient payment discounts
  • Strategic partnerships with local hotels, homestay, traffic, tourist attractions and tourist administrations
  • Convenient mobile payment and mobile booking (e.g. Alipay, Wechat pay)
  • Developed the “Polaris tourism big data service system” based on TPI (Travel Property Index)

Processes

  • Accurate recommendation processes for travel products and services accurate recommendation
  • Supply chain management – enriching travel products, supplier introduction plan
  • Frequent product and service upgrades to innovate and advance
  • Share user traffic and big data (travel) to attract and retain suppliers
  • Unique “Get customers by contents” model matches supply and demand efficiently, helps suppliers on the platform to improve profit margins and reshape the tourism industry chain
  • Co-creation in product and service development

Priorities

  • Vision: As long as a traveler can reach a destination, there is Mafengwo to serve
  • Continue to develop online, digital, and intelligent tourism service platform
  • Based on the perspective of consumers, help users make reasonable travel decisions
  • Focus on UGC and travel big data
  • C2B (customer to business) model
  • Diversify product offerings

Assertions That Best Describe What the Company Did to Scale Early, Rapidly & Securely

  1. Increase the company’s value by continuously seeking and receiving funding to support the company’s plan to scale and improve its image in the marketplace
  2. Increase sales by applying big-data analytics to produce information about users, suppliers and customer
  3. Increase demand by using scientific and technological advances to develop innovative products and services
  4. Increase demand of products and services by combining two or more resources in a way that the value created from them exceeds the sum of the value created from each resource separately
  5. Enable users to participate in the rapid development of company products and services
  6. Increase demand by enabling users to participate in product and service development
  7. Continuously improve the user interfaces and applications that directly influence the entirety of the customer experience including personalized content, quality messaging, and the delivery and returns process to increase sales