Trip.com, H World Share the Limits of Their China Playbook Abroad

Key Points

• Trip.com and H World Group both struggled to apply their China-focused strategies abroad, facing cultural and operational challenges.
• Adapting to local leadership and direct partnerships has improved international operations, but overcoming negative perceptions remains difficult.
• Chinese companies cannot rely on Chinese travelers to fill international hotels and must focus on local and diversified guest bases.

Summary

Trip.com and H World Group discovered that strategies successful in China do not always translate well internationally. Both companies initially faced setbacks due to a lack of local cultural understanding and operational missteps, such as relying heavily on Chinese leadership and indirect partnerships. They have since shifted to local leadership and more direct business relationships, but challenges, including overcoming negative partner perceptions and adapting to different guest expectations for service and technology, persist. Both firms now recognize the importance of catering to local markets and diversifying their guest base as they continue to expand globally.