Investment Rating - The industry investment rating is "Positive" (maintained) [4] Core Insights - The report emphasizes the importance of changes in the bottom-line fundamentals, with a focus on offline retail and overseas expansion as key investment opportunities [1] - The travel sector is experiencing a recovery, with significant growth in domestic travel preferences shifting from "going to see" to "going to experience" [2] - The online travel agency (OTA) sector is benefiting from overall market growth, maintaining a stable competitive landscape despite new entrants [2] - The offline retail sector is undergoing transformation, with supermarkets expected to see profit improvements due to supply chain changes and store renovations [4][6] - The hotel industry is anticipated to reach a bottom cycle, with leading companies expected to improve operational efficiency and profitability [7] - Cross-border e-commerce is facing profit differentiation due to external factors, but platform-based companies are expected to perform steadily [8][9] - The mother and baby retail sector is benefiting from policy support and store adjustments, leading to a recovery in same-store sales [10][11] Summary by Sections Travel and Tourism - National holiday travel data met expectations, with a year-on-year increase of 7% in cross-regional travel [2] - Scenic spots saw a surge in visitors, with notable increases in tourist numbers during the holiday period [3] Offline Retail - Supermarkets are undergoing renovations, which are expected to enhance customer attraction and profitability [4] - The competitive landscape in offline retail is improving, with a shift towards quality retail [4][6] Hotel and Restaurant - The hotel sector is projected to see a recovery in RevPAR as supply stabilizes and operational efficiencies improve [7] - The restaurant sector is under pressure, but specific segments like wedding banquets are expected to perform better [7] E-commerce - Cross-border e-commerce is experiencing increased competition, but platform-based companies are expected to maintain stable performance [8][9] - The overall e-commerce sector is seeing a reduction in competitive pressure, with a focus on optimizing user experience and enhancing sales through instant retail [15][16] Mother and Baby Retail - The sector is benefiting from supportive policies and adjustments in store formats, leading to improved sales performance [10][11]

Core Insights - The 2025 China International Fair for Trade in Services highlighted the significant role of AI in the tourism industry, with a focus on digitalization and enhancing inbound tourism services [1] - The global tourism industry is experiencing a milestone recovery, with international tourist arrivals exceeding 300 million in Q1 2025, marking a 5% year-on-year increase [1] - China's outbound tourism spending has surged by 30%, reinforcing its position as the world's largest tourism spender [1] Inbound Tourism Growth - In 2024, inbound tourist arrivals in China reached 130 million, reflecting a year-on-year growth of over 60% [2] - The order volume for foreign tourists on the Qunar platform increased by 1.8 times in 2024, indicating a growing interest in China's tourism offerings [2] - There is a notable trend of foreign tourists exploring third-tier and lower cities in China, with ticket bookings to places like Datong, Yiwu, and Yining doubling [2] Airport Enhancements - Beijing Capital International Airport has implemented various services to accommodate inbound tourists, including an English version of its app and a luggage storage service for travelers [3] - The airport's website now supports four languages and offers 43 functions, enhancing the travel experience for international visitors [3] AI and Big Data in Tourism - The tourism industry is undergoing structural adjustments driven by AI and big data, reshaping the tourism development landscape [4] - Companies like Xiaohongshu are leveraging AI to enhance marketing strategies and improve user engagement with overseas destinations [4] - Qunar is actively integrating AI applications for user experience, including travel planning and customer service, with plans to launch an AI travel toolbox on its app [4] AI Applications by Travel Companies - Meituan Travel is exploring AI capabilities for both consumer and business users, with plans to introduce an AI travel assistant for consumers and specialized tools for hotel and scenic area operators [5] - The focus on AI in the travel sector aims to streamline services and enhance customer interactions across various platforms [5]