Core Viewpoint - JD.com has introduced a zero-commission policy for hotels, aiming to attract more hotel partners and disrupt the traditional OTA (Online Travel Agency) business model, which relies on commission fees for revenue [2][3][5]. Group 1: Zero-Commission Policy - JD.com launched a zero-commission policy for hotels, allowing participants in the "JD Hotel PLUS Membership Program" to enjoy up to three years of zero commission [2][6]. - The first order received under this policy was from Xi'an Fengshang Hotel, which reported a 10% commission rate on the booking, indicating that the zero-commission is effectively a rebate system rather than an outright waiver [9][12]. - The commission rate of 10% is considered average in the industry, with competitors like Ctrip and Meituan charging between 8% to 15% [13]. Group 2: Market Strategy and Competition - JD.com aims to leverage its supply chain to optimize costs and enhance its competitive edge in the hotel and travel sector [4][5]. - The company has established a new division focused on the hotel and travel business, indicating a strategic shift towards enhancing product quality, pricing, and service [5][27]. - Experts suggest that JD.com’s entry into the hotel market could challenge the core revenue models of existing OTAs like Ctrip and Meituan, potentially leading to a "double kill" effect by impacting both commission structures and hotel supply chains [21][30]. Group 3: Industry Response - Smaller hotels are generally more receptive to JD.com's zero-commission model, viewing it as an opportunity to reduce reliance on traditional OTAs and their associated costs [20][31]. - In contrast, larger hotel groups are hesitant to join JD.com, citing their established membership systems and concerns over the sustainability of JD's business model [20]. - The competitive landscape is characterized by high barriers to entry, with established OTAs having significant advantages in supply chain and customer loyalty [30]. Group 4: Historical Context and Future Outlook - JD.com has been involved in the travel sector since 2011, but recent developments mark a significant shift in its approach to hotel bookings and partnerships [24][25]. - The company is actively recruiting talent from the travel industry, indicating a commitment to building a robust hotel and travel business [26][27]. - The future of JD.com in the hotel market remains uncertain, with industry insiders expressing mixed feelings about the potential impact on smaller hotels and the overall market dynamics [31].