Mafengwo

 

“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

  • 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
  • Increase sales by applying big-data analytics to produce information about users, suppliers and customer
  • Increase demand by using scientific and technological advances to develop innovative products and services
  • 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
  • Enable users to participate in the rapid development of company products and services
  • Increase demand by enabling users to participate in product and service development
  • 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