Jane Sun, Trip.com: What AI Means for Travel

Summary

Trip.com Group CEO Jane Sun discusses her company's journey from a centralized call center to an AI-driven platform, emphasizing the importance of travel in education and global understanding. Sun highlights Trip.com's customer service excellence, diverse offerings, and aspirations to become a leading travel agency worldwide. She also touches on the potential of China's inbound travel market and the company's commitment to empowering women in leadership roles.

Takeaways

• 📚 Confucius' teaching emphasizes the value of travel over reading, highlighting travel as a form of learning.
• 🌐 Trip.com Group, under Jane Sun's leadership, has become a leader in customer experience and expanded internationally.
• 🛫 Jane Sun joined Trip.com Group in 2005, during the early stages of online booking and travel industry growth in China.
• 💡 Jane Sun's vision for Trip.com Group is to make it one of the world's largest travel agencies.
• 🔄 The travel industry has evolved significantly with technological advancements, moving from offline to online and then to mobile apps.
• 🤖 Trip.com Group invests heavily in AI to improve user interface, efficiency, and customer service levels.
• 🌍 Travel is deeply rooted in Chinese culture as a means of education and has seen a significant number of Chinese tourists traveling abroad pre-COVID.
• 🎉 Post-COVID, many countries have adopted open-door policies for Chinese tourists, including visa-free travel and increased air capacity.
• 💰 Trip.com's customers are considered high-value, with their buying power being 2 to 3 times higher than the average buyer.
• 🏆 Trip.com offers a one-stop shopping platform for all travel-related needs and provides exceptional 24/7 customer service.
• 🚀 China's inbound travel market has significant untapped potential, with historical contributions to GDP being less than 1%.
• 👩‍💼 Trip.com Group actively empowers women, with over 50% of the workforce, 40% of middle managers, and more than one-third of executives being women.
• 💸 The company's high-value offerings include luxury travel packages, such as a $200,000 around-the-world trip that sold out in 17 seconds.

Q & A

What is the Confucian teaching mentioned by Jane Sun regarding the comparison between traveling and reading?

The Confucian teaching mentioned by Jane Sun is that it is better to travel 10,000 miles than to read 10,000 books, emphasizing the value of experiential learning through travel.

When did Jane Sun join Trip.com Group and what was the state of online booking and travel in China at that time?

Jane Sun joined Trip.com Group in 2005 when online booking was still nascent and travel in China was just beginning to take off.

What was Jane Sun's background prior to joining Trip.com Group?

Jane Sun had an established career in the United States and had received bilingual and bicultural training there for almost 20 years. She was also born in Shanghai.

How did Trip.com Group differentiate itself from competitors in the early days of its business?

Trip.com Group differentiated itself by establishing a centralized call center in Shanghai to reach out to the whole country, while competitors were trying to establish roadside shops.

How has technology impacted the travel industry and Trip.com Group's approach to business?

Technology has significantly impacted the travel industry, with Trip.com Group evolving from offline to online, then to mobile apps, and now heavily investing in AI to improve user experience and efficiency.

What is the significance of travel in Chinese culture and how does it relate to education?

Travel is deeply rooted in Chinese culture as a means of education, with many families using it to broaden their children's perspectives and experiences.

How has the post-COVID travel landscape changed for Chinese consumers, and what opportunities has it created for Trip.com Group?

Post-COVID, many countries have adopted open-door policies for Chinese consumers, offering free visas and increased air capacity, creating opportunities for Trip.com Group to bring high-quality customers to these destinations.

What is the significance of the customer buying power of Trip.com's clientele, and how does it benefit the company?

The buying power of Trip.com's customers is 2 to 3 times higher than the average buyer, which is a significant advantage for the company as it attracts countries wanting to host high-spending tourists.

What is the most expensive tour package sold by Trip.com Group, and how quickly did it sell out?

The most expensive tour package sold by Trip.com Group costs about 200,000 USD per person for an 80-day trip around the world, and it sold out in just 17 seconds.

What are the key factors that give Trip.com Group an edge in becoming the largest OTA in Asia?

Trip.com Group's edge includes offering a one-stop shopping platform for all travel-related products, 24/7 customer service with quick response times, and prioritizing customer requests in case of emergencies.

How does AI play a role in Trip.com Group's business strategy and customer experience?

AI is crucial for Trip.com Group's business, improving the user interface by allowing natural language searches, increasing efficiency for engineers, enhancing customer service levels, and enabling the creation of dynamic and timely content.

What initiatives does Trip.com Group have in place to empower women in the workforce and leadership positions?

Trip.com Group has made concerted efforts to empower women, resulting in over 50% of the workforce being women, more than 40% of middle managers being women, and over one-third of executives being women.

How can interested customers sign up for high-end travel packages like the one mentioned in the script?

Interested customers are welcome to sign up with Trip.com Group for high-end travel packages, indicating a simple and open process for accessing these exclusive offers.

Outlines

00:00

🌏 Embracing the Travel Industry's Evolution

Jane Sun, CEO of Trip.com Group, discusses the philosophy that travel is a form of learning, emphasizing the importance of firsthand experience over book knowledge. She reflects on her decision to join the company in 2005 when online booking was in its infancy and how she leveraged her bicultural background to bridge the gap between the US and China. Under her leadership, Trip.com Group has become a leader in customer experience and expanded internationally. The conversation highlights the company's strategic shift from offline to online services, the adoption of mobile apps, and significant investment in AI to stay ahead in the technological advancements reshaping the travel industry. Sun also touches on the cultural significance of travel in China, the impact of COVID-19 on travel patterns, and the opportunities presented by countries with open-door policies for Chinese tourists.

05:02

🛎️ Unmatched Customer Service and the Power of AI

This paragraph delves into Trip.com Group's commitment to exceptional customer service, boasting a 24/7 call center with a quick response time and immediate assistance during travel disruptions. It outlines the company's comprehensive one-stop shopping platform, offering a wide range of travel-related products and services. The discussion also explores the untapped potential of China's inbound travel market, comparing it with global statistics and highlighting the opportunity for growth. The role of AI in enhancing user interfaces, improving operational efficiency, and elevating customer service levels is emphasized. The segment concludes with insights into the company's diversity and inclusion initiatives, particularly focusing on empowering women in leadership roles, and a mention of the record-breaking sale of a luxury travel package, showcasing the company's appeal to affluent customers.

Keywords

💡Confucius teaching

Confucius teaching in the script refers to the ancient Chinese philosopher's emphasis on the value of travel over reading, suggesting that experiential learning is superior to theoretical knowledge. This concept is foundational to the video's theme, which explores the importance of travel as a means of education and personal growth. The script uses this teaching to introduce the idea that travel is a form of learning, which is a central message throughout the interview with Jane Sun.

💡Travel

Travel is a central theme in the video, highlighting its significance as a means of education, cultural exchange, and personal development. The script discusses how travel brings people together, promotes global understanding, and contributes to peace. It is also portrayed as an industry with vast potential for growth and innovation, especially through the lens of Trip.com Group's evolution and expansion.

💡Trip.com Group

Trip.com Group is the company at the heart of the video, led by CEO Jane Sun. It is a leading travel agency that has evolved from offline to online services and now focuses on leveraging AI technology to improve customer experience. The script discusses the company's history, its transformation with technological advancements, and its international expansion efforts.

💡Customer Experience

Customer experience is a key focus for Trip.com Group, as highlighted in the script. It refers to the quality of the interaction between the customer and the company, aiming to create a positive and memorable journey for the customer. The script mentions Trip.com Group's efforts to become a leader in this area, emphasizing 24/7 customer service and rapid response times as part of their commitment to excellence.

💡Online Booking

Online booking is a significant aspect of the travel industry discussed in the script. It refers to the process of reserving travel-related services, such as flights and hotels, via the internet. The script notes that when Jane Sun joined Trip.com Group in 2005, online booking was still in its infancy in China, and the company played a pivotal role in moving the industry from offline to online platforms.

💡AI (Artificial Intelligence)

AI is portrayed as a crucial technology for the future of travel and Trip.com Group's business. The script discusses how AI is used to improve the user interface, increase efficiency in coding, enhance customer service levels, and create dynamic content. AI is presented as a transformative tool that will change how travel is planned and experienced.

💡Global Understanding

Global understanding is a concept that emerges from the script's discussion on the benefits of travel. It refers to the knowledge and appreciation of different cultures, societies, and perspectives gained through exposure to diverse environments. The script suggests that travel, as facilitated by Trip.com Group, contributes to fostering global understanding and peace.

💡COVID-19 Impact

The script addresses the impact of COVID-19 on the travel industry, noting a shift in travel patterns and policies post-pandemic. It mentions how countries have adopted open-door policies for Chinese consumers, offering incentives like free visas and increased air capacity to boost tourism and economic recovery.

💡Inbound Travel

Inbound travel is discussed in the context of China's potential to increase its share of GDP from tourism. The script contrasts China's current low percentage of GDP from inbound travel with other countries and suggests that there is significant room for growth. Trip.com Group is positioned to capitalize on this potential by attracting international visitors to China.

💡High-Quality Customers

The term 'high-quality customers' in the script refers to travelers who have a high buying power and contribute significantly to the economies of the destinations they visit. The script highlights that Trip.com Group's customers are highly valued by many countries due to their spending capabilities, which are 2 to 3 times higher than the average buyer.

💡Women Leadership

Women leadership is a notable aspect of Trip.com Group's corporate culture, as mentioned in the script. It discusses the company's efforts to empower women, resulting in a workforce where more than 50% are women, and significant representation in middle management and executive levels. The script implies that this diversity in leadership is seen as a strength and a potential area for further improvement.

Highlights

Confucius teaching emphasizes the value of travel over reading, highlighting travel as a form of learning.

Jane Sun joined Trip.com Group in 2005 when online booking was nascent and travel in China was burgeoning.

Under Jane Sun's leadership, Trip.com Group became a leader in customer experience and expanded internationally.

Jane Sun's vision is to make Trip.com Group one of the world's largest travel agencies.

Jane's decision to join Trip.com involved a major move for her family, leveraging her bicultural background.

Trip.com was the first to establish a centralized call center, shifting the industry from offline to online.

The company has evolved with technology, moving from PC to app and now investing heavily in AI.

Travel is deeply rooted in Chinese culture as a means of education and global understanding.

Pre-COVID, China sent 150 million people abroad, reflecting the importance of travel in the country.

Post-COVID, countries like Dubai, Abu Dhabi, Doha, and Riyadh have opened their doors to Chinese tourists with incentives.

Trip.com's customers have a high buying power, attracting countries to partner for high-quality tourists.

The company sold an expensive tour package for $200,000 per person in just 17 seconds, showcasing demand.

Trip.com aims to be the largest OTA in Asia, offering a one-stop shopping platform for travel needs.

The company provides 24/7 customer service with quick response times and immediate assistance during trips.

China has significant potential for inbound travel, currently accounting for less than 1% of its GDP.

AI is crucial for Trip.com's business, improving user interface, efficiency, customer service, and content creation.

Trip.com actively empowers women, with over 50% of the workforce and substantial leadership positions held by women.

The $200,000 tour package highlights the market's potential for high-value travel experiences.

Transcripts

The Confucius teaching is it is better to travel

10,000 miles than to read 10,000 books.

So traveling is learning.

An avid traveler herself, Trip.com Group

CEO Jane Sun joined the company in 2005 when online booking

was still nascent and travel in China was just beginning to take flight.

Under Jane, Trip.com Group became a leader in customer experience

and expanded its reach internationally.

As an analyst covering China internet companies,

I wanted to learn more about Jane's vision,

so I traveled to the company's headquarter in Shanghai,

where we discussed Jane's aspirations to make Trip.com Group

one of the world's largest travel agencies.

Thank you for making the time to chat today, Jane.

Thank you.

Almost 20 years ago, co-founder James invited you to join the company.

Back then, it was the early days in China Internet,

and you had an established career in the States.

Was it an easy decision?

It was a decision which required a major movement for my family.

I had bilingual, bicultural training in the USA for almost 20 years.

And also I was born in Shanghai.

So I thought I could be a good bridge between the USA

and China.

And I thought travel is a great industry.

It brings people together and promotes global understanding

and global peace.

And after I looked at what Trip.com was doing,

I thought, this company would have a very good opportunity to stand out.

Travel has changed quite a lot with the improvement of technology.

I remember when I joined the company, all the other players

would try to establish shops on the roadside to conduct their business.

Trip.com was the only company which established a centralized call center

in Shanghai and reached out to the whole country and very soon

all the offline businesses started to move online.

So we put our efforts to move from offline to online.

And then when the app

started to play an important role, we put all of our efforts

to move from PC to app, and now AI becomes very important.

So, we invest quite heavily in AI.

So, we definitely evolve through the improvements of the technology.

Travel isn't just

about seeing new places, it's about unlocking perspectives,

staying connected and experiencing the world around us.

Travel is something that in the teaching of Chinese people

historically are very strongly rooted in people's hearts.

Many families and parents

always want to use travel as a way to educate their children.

So, pre-COVID, China sent 150 million people abroad

to visit countries all around the world.

After COVID, travel resumes,

so many countries have an open-door policy for Chinese consumers,

such as Dubai, Abu Dhabi, Doha, Riyadh.

They offer free visa.

They also have doubled air capacity.

So we're bringing thousands of customers to these cities and the regions.

Singapore, Malaysia and Thailand also have free visa to Chinese consumers.

And in Australia, for the first time, Chinese inbound tourists

become number one.

Many CEOs told me that Trip.com’s customers’

buying power is 2 to 3 times as high as their average buyer.

So, the majority of the countries really would like Trip.com

to bring high-quality customers to visit them.

The most expensive tour we sell cost

about 200,000 USD per person

per trip, 80 days around the world.

And guess how long did it take us to sell these packages?

I heard you said that. 17 seconds.

Very fast. Very fast.

Meanwhile, you talk about

making Trip.com

to be the largest OTA in Asia in the next few years.

What specifically do you think that gives Trip.com the edge?

First of all, we offer a one-stop shopping platform.

On Trip.com, not only you can book hotels, flights, tours,

cruise, skis, anything you can imagine,

and as long as it's related to travel, we offer these products to our customers.

Simultaneously,

we can launch more than 100 products together.

The second thing is the customer service level: 24/7.

As long as you call our call center,

we will be able to answer the phone within 30 seconds.

And if something happens during your trip, within 2 minutes

our team already reached out to our customers,

making sure they are in a safe hotel. The very next day,

if our customer decide to fly back home,

we will be able to prioritize their request

and make sure they fly to their home country right away.

You have talked

about the potential opportunity for China inbound travel.

Historically, it's been less than 1% of China GDP.

What has changed that makes you think that this can finally take off?

When we look at the global places, Thailand does it beautifully.

More than 13% of their GDP

are from the inbound customers.

The other countries account for maybe 5% to 7%.

The USA, with such a scale of the GDP,

2% to 3% of the GDP

from inbound travel, but China is below 1%.

So there is a great potential for China to open its door

and invite friends from all over the world to visit China.

Soon, AI will change how we think about travel

and Trip.com Group is at the forefront with technology

that simplifies planning and helps customers dream up new adventures.

AI is very important for our business.

First of all is the user interface.

In the past, when you tried to search a hotel,

you probably will search for “five star hotel in Shanghai” -

- “pet friendly” -

“I also want to bring two kids.” But now we can tell AI what you want.

Secondly, is the improvement of efficiency.

Our engineers can save anywhere between

15% to 30% of the coding time

if they deploy AI. Thirdly, is the customer service level.

AI will be able to

increase the service level

by using the advanced technology.

And lastly, I think we will be able to create

much more dynamic content on a more timely basis.

So you've been running Trip.com for almost 20 years

and women are representing an increasingly large

share of the company workforce and also leadership.

Is this by design?

I see great potential for women leadership.

So, in Trip.com we do quite a lot to empower women.

Through these concerted efforts, we have achieved great results.

More than 50% of the workforce

are women. More than 40% of the middle

managers are women, and more than one third of the executives are women.

And I still think we have good improvements in the future to make.

My last question is about the $200,000 package that was sold out in 17 seconds.

Is there an easy way to sign up?

Yes, you are more than welcome to sign up with us.

Thanks for your time today, Jane.

Thanks for being here.