Chinese travel platform Qunar celebrated its 20th anniversary by shifting its focus to AI. CEO Gordon Chen described this initiative as the company’s “fourth startup,” intending to integrate AI into various operations and services.

Founded in 2005, Qunar began as a vertical travel search engine. It has since evolved into a full-service online travel agency (OTA). The company later restructured to operate independently within China’s competitive tech market.

Qunar has started implementing AI in several areas, including virtual hotel concierges, customer support, train ticket searches, and itinerary planning. Company data indicates that the use of AI has reduced training time for new agents by 66% and increased user satisfaction by 13%.

In March, Qunar’s AI-powered travel assistant received regulatory approval in China.

Chen noted that the company plans to undergo further restructuring over the next two years to fully integrate AI. This includes launching pilot projects to embed the technology in its operations.

Over its two decades, Qunar has maintained a significant user base, with 200 million users placing orders through its platform. Recently, the demand from residents in lower-tier cities has surged, particularly among first-time flight buyers. This segment saw a 35% year-on-year increase.

🔗 Source: Caijing

🧠 Food for thought

1️⃣ Chinese OTAs have evolved through distinct technological waves

Qunar’s “fourth startup” journey reflects the broader evolution of Chinese travel platforms, which have consistently reinvented themselves through major technological shifts.

The first wave saw the emergence of vertical search engines around 2005, followed by transformation into full-service OTAs, then a pivotal mobile-first revolution where 70% of transactions migrated to smartphones by 20151.

The industry underwent consolidation under tech giants like Baidu, Alibaba, and Tencent (BAT), which invested approximately $15 billion in one year, representing 90% of total investments in China’s digital economy2.

This explains why CEO Chen Gang frames Qunar’s history as “building on the Meta-era hype, winning in the mobile era, and thriving beneath giants” — these represent distinct technological and competitive phases experienced by all major Chinese travel platforms.

Today’s AI transformation represents a fourth distinct wave, with Qunar’s regulatory approval for its generative AI app positioning it within an industry-wide shift toward AI-powered personalization.

2️⃣ Travel platforms are racing to implement practical AI applications

Qunar’s focus on specific AI use cases like virtual concierges and customer support reflects a broader industry trend of moving beyond theoretical AI to practical implementation.

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