Viva tech China Pavilion, double symbol of Chinese tech & AI (with TripGenie for AI travel) & Chinese tourism in France recovering #186

Version fran?aise : https://shorturl.at/YfBJx

Nearly 40% of the exhibitors showcased innovations in AI, the day after the President of the Republic, Emmanuel Macron , affirmed his ambition to make France a stronghold of AI: "France has chosen to be the leading country in Europe in AI." This 2024 edition of Viva Technology surpassed CES, in terms of attendance (165,000 visitors, a 10% increase compared to 2023 vs 150 000 for CES).

As Fran?ois Bitouzet , the general delegate of Viva Tech, reminded, "We always expect more from China at VivaTech because, as the European leader in digital, we need to understand what China is doing in tech, innovation, and digital," the China Pavilion at Viva Tech 2024 was symbolic in two respects. It highlighted China's position on digital innovation, especially in the field of AI and in travel tech, following the joint declaration between France and China during the visit to France of Chinese President Xi Jinping on May 6. It also symbolizes the strong recovery of Chinese tourism which is set to accelerate even further for the Olympics.

This was an opportunity to discuss how Trip.com, the major Chinese OTA often mentioned in these columns, and which, like WeChat and Alibaba, surfs and reveals trends, making innovationism a philosophy with its AI Genie as a cornerstone. It was also a chance to revisit Chinese business tourism in France, which Viva Tech and tomorrow's Olympics will confirm and boost, with a +354% increase in Chinese air arrivals for the Olympics according to Atout France, which could leverage Chinese leisure tourism and perhaps help France regain its position in 2025 as the top European destination for Chinese tourists.

1/ TripGenie, the AI from Trip.com, symbol of Chinese innovation in tech and digital within the travel sector.

About 80% of respondents use AI tools or services to plan their travels. The new generation of users has gained numerous benefits from the intelligent life enabled by AI, which has been a significant game changer in the Chinese consumer market in 2024 compared to previous years. Q1 2024 Consumer Travel Trends Insight Report" jointly published by TravelDaily China and Data100,

In this context, Trip.com, the Chinese OTA with 1.1 billion users, launched Genie, its AI tool. This provides an opportunity to revisit Trip.com and its innovations, as well as the features of its AI tool and the measurable benefits already apparent.

Trip.com, 1.1 billion user

Founded in 1999 under the name Ctrip, Trip.com is one of the leading online travel agencies in the world, operating in 200 countries with 30,000 employees, and boasting over 400 million active monthly users across its various platforms. Trip.com has established strategic partnerships with tourism offices, major hotel chains, airlines, railway operators (see below Trip.com's European Railway Strategy), and local travel providers worldwide. As a leader in hotel bookings, the company lists more than 1.7 million accommodations globally, flights from over 600 airlines, and a network of more than 90,000 partners, including tours, attractions, car rental providers, and trains.

2023 growth: 100%, mobile transactions: 80%

The group experienced unprecedented growth in 2023, increasing by 100%, with 80% of that growth occurring in the first quarter of 2024. For the fourth quarter, Trip.com reported a net revenue of 10.3 billion yuan (approximately $1.5 billion), representing a 105% increase from the previous year. Additionally, 80% of Trip.com's transactions are conducted via mobile devices, reflecting the growing trend of using smartphones for travel planning and booking.

Trip.com European railway strategy

Focusing on sustainability, train travel is positioned as a more sustainable transportation option compared to other modes of transport and is at the heart of the group's European strategy. Led by CEO Jane Sun, Trip.com has adopted a strategic approach to becoming a major player in the European rail sector, emphasizing partnerships, technology, and sustainability. As part of this strategy, Trip.com Group incorporates strong Environmental, Social, and Governance (ESG) commitments into its business objectives, such as promoting low-carbon travel options, supporting family-friendly policies, and revitalizing communities to ensure mutual benefits for customers, partners, and the broader community.

Jane Sun, CEO of Trip.com Group, was a speaker at the 2021 A World for Travel forum organized by Christian Delom and Frederic Vanhoutte . Sustainability was also a key theme, with Trip.com Group integrating strong ESG commitments into its business goals. These initiatives include promoting low-carbon travel options, supporting family-friendly policies, and revitalizing communities to ensure mutual benefits for customers, partners, and the wider community. Jane Sun highlighted the importance of technology and innovation in expanding Trip.com's presence in the European train market. She stated that integrating train services on Trip.com's platform aims to provide a complete and seamless travel solution for European users, while meeting the growing demand for sustainable and efficient travel options.

In this context, a night train between Hong Kong, Shanghai, and Beijing will be launched. “By offering a night journey, we provide passengers with a viable option, faster (12 hours vs. 24 hours previously to cover 1,966 km) and more environmentally friendly than flying, while allowing them to maximize their time at the destination," said Lincoln Leong, CEO of MTR Corporation Limited 香港鐵路有限公司.

Jane Sun has played a key role in developing the company’s European rail strategy, which is based on 3 main pillars.

Expansion of Partnerships with several European railway operators (Deutsche Bahn in Germany, Renfe in Spain, Trenitalia in Italy, and Eurostar in the UK) to offer a wide range of train tickets covering an extensive railway network across Europe. In the UK, one of the flagship offers is the "Network Railcard," which allows for a one-third discount on train tickets for off-peak travel during weekdays and at any time on weekends and public holidays. This card is valid for one year and covers a vast area including London and the Southeast of England, extending to cities like Reading, Cambridge, and Brighton.

Integrated Platform that allows users to search, compare, and book train tickets in real-time, as well as check schedules, prices, and train availabilities, all while offering secure payment options and electronic tickets for a contactless experience.

Facilitation of Cross-Border Travel: By integrating the services of multiple railway operators to facilitate cross-border travel in Europe. Users can book complex routes that cross multiple countries, with optimized suggestions for smooth connections and efficient journeys.

Trip.com Group adopts the concept of "innovationism" as its new philosophy ??.

Trip.com has been innovating for several years, especially to meet the expectations of a Gen Z Chinese audience eager for experiential travel offers. In this context, two examples can be mentioned: Chinese Valentine's Day and NFT Trekki.

During the 2023 edition of the Qixi festival, the Chinese Valentine's Day on August 22, "Young consumers demand experiences rather than products as gifts. This includes fun activities, restaurant bookings, and travel," explains Sory Park from the market research firm Daxue Consulting. To meet these expectations of Chinese Gen Z, Trip.com Group has expanded its offerings to include a variety of experiential products, such as customized trips to scenic natural sites and camping grounds, as well as plane and bus tickets.

In 2023, Trip.com also offered, primarily to the same Chinese Gen Z, a Web 3 experiential journey and became one of the first OTAs to offer non-fungible tokens (NFTs), incubating its first collection, "Trekki."

This Trekki collection consists of 10,000 NFTs themed around a cartoon dolphin, now open for registration on the official Trekki website. These NFTs were sold via blind boxes in the third quarter of 2023. After becoming a sensation in the 1980s in Japan, "blind boxes" have found a new life in China, where these miniature toys featuring manga characters are highly sought after. In the secondary market, a rare figurine—still in its original unopened box—can easily be worth more than ten times its initial price, generally between $10 and $20 (approximately €8 to €16). Similar to the trading sticker albums that were once a hit in schoolyards, "blind boxes" now bring joy in China to both nostalgic adults and... trendy youth.

Trekki NFTs are categorized based on their rarity, with each NFT featuring a distinct personality and various travel-themed backgrounds. Trekki is ranked according to its rarity, each NFT having a unique personality, character, and diverse travel horizons. Aiming to connect Web3 nomads with the world of travel, Trekki allows travel enthusiasts who appreciate unique experiences and digital collectibles to enjoy various benefits on Trip.com. The new NFT also includes a unique gamified growth mechanism: the more a Trekki holder travels, the more benefits they can unlock through Trekki.

See the Chinese Tourism Newsletter: Has the Gen Z Chinese Web 3 Experiential Journey Begun? (#170)

China has announced its ambition to become the global leader in artificial intelligence (AI) by 2030.

This project is part of a broader strategy aimed at positioning the country as a global technological superpower. To achieve this goal, China is massively investing in research and development, science and technology education, and encouraging local companies to innovate in the field of AI.

The Chinese strategy includes several key points:

- Increasing public and private funding for AI research and development.

- Training and recruiting AI science and technology talent through educational programs and partnerships with universities.

- Encouraging AI innovations and applications across various industrial sectors to boost productivity and innovation.

- Establishing policies and regulatory standards to guide the ethical and responsible development of AI.

Two Chinese AI text-to-video technologies can be mentioned: Vidu by Shengshu and Kling by Kuaishou Technology.

• VIDU Chinese text-to-video AI

Shengshu, a company founded in 2023 in Beijing, has unveiled Vidu, a counterpart to the American AI Sora, capable of creating realistic videos from simple text input. Thanks to @johan digital solutions.

See the Chinese Tourism Newsletter: Visit of the Chinese President for the 60th Anniversary of Franco-Chinese Relations and Cultural, Sporting, and Economic Cooperation (#183)

• Kling, developed by the Chinese company Kuaishou Technology,

is an AI that generates videos up to 2 minutes long. Currently in the testing phase, it allows for the conversion of text into video clips with a maximum duration of 2 minutes, at a resolution of 1080p and a frame rate of 30 frames per second, thanks to what the company describes as "an efficient training infrastructure, extreme inference optimization, and a scalable infrastructure."

Chinese Gen Z is increasingly interested in generative AI

According to CCID Consulting Co., the AI industry in China is expected to see significant growth over the next 10 to 15 years, reaching 1.73 trillion yuan ($240.4 billion) by 2035, accounting for 30.6% of the global market, as noted by Ashley Dudarenok 艾熙丽

In a survey of 3,500 young Chinese people on generative AI (of which 80% are Gen Z), 60% said they "like" or "love" generative AI, while less than 3% "dislike" or "hate" it. In 2023, the figure was 43%. 90% of them have used generative AI, and nearly 18% of Gen Z use it every day.

Innovation (AI) is key to staying at the forefront of the travel industry

The BATB, the Chinese equivalents of GAFA, are known for riding and driving digital trends. Weixin/WeChat the leading Chinese social network with 1.2 billion users, has become a staple for global destinations looking to reach Chinese tourists. 阿里巴巴集团 , through Fliggy , has adapted livestreaming e-commerce to tourism during the health crisis with the "dream now, travel later" approach, and the short video revolution driven by Douyin or Little Red Book has also disrupted tourism promotion. For these players, digital innovation (livestreaming, short videos, e-commerce, and mobile payment) is a battleground to address Chinese consumers, particularly Gen Z, whether they are consumers in China or tourists worldwide.

Major Chinese OTAs (Trip.com, Fliggy) also utilize AI for various purposes.

Fliggy, Alibaba's OTA, has used AI for billboard advertising, creating over 1,000 posters that feature stunning and dreamlike landscapes in line with their brand image. The success of these AI-generated billboards has created significant buzz, generating over 150 million views, especially on 微博（Weibo） , the Chinese equivalent of X/Twitter.

Trip.com, formerly known as C-Trip, the leading OTA, places innovation at the heart of its strategy with the creation of an AI tool, "Trip Genie," which ranks among the world's most effective AI travel tools.

On May 30, 2024, Trip.com Group gathered more than 1,600 partners from over 50 countries and regions at the Envision 2024 global partners conference. Themed "Charting the Next Chapter of Our Growth Together," the event unveiled key trends and opportunities that will shape the future of the travel industry.

Sustained investment in innovation and technological advancements emerged as a core strategy, with a particular focus on the transformative potential of AI (see the paragraph on Trip's AI: TripGenie).

Mr. James Liang, co-founder and chairman of Trip.com Group, emphasized the key role of innovation in staying at the forefront of the travel industry, citing TripGenie as one of the innovative ways to revolutionize the travel planning and booking process.

TripGenie, the AI from trip.com to enhance customer service and marketing by integrating technology and content.

"Every industry needs to innovate and the travel industry is no exception. We are constantly innovating in terms of efficiency, quality, customer service, and even marketing. For example, AI like TripGenie can enhance customer service and marketing by integrating technology and content, in order to deliver the best value to our customers," said 梁建章

Mr. Liang also emphasized the widespread impact of AI on the travel industry, increasing productivity, improving customer service, and providing users with personalized travel recommendations. For instance, TripGenie offers curated lists that can provide travelers with the best deals and personalized recommendations at every stage of their journey.

At the Envision 2024 conference, Jane Sun, CEO of Trip.com, highlighted the importance of innovation and technology for the future growth of the travel industry, particularly through AI. She introduced TripGenie, a key example of how technology can transform travel planning and booking, as well as customer service and marketing by integrating technology and content. TripGenie uses advanced language models to understand and respond to complex user requests through text and voice commands, providing comprehensive travel plans, personalized recommendations, and immediate bookings, ensuring a seamless user experience from start to end.

Features of TripGenie

TripGenie is an advanced travel assistant powered by AI, integrated into its mobile app to simplify and enhance travel planning and booking experiences. It utilizes advanced language model technologies to understand and respond to complex user requests through text and voice commands, providing comprehensive travel plans, personalized recommendations, and immediate bookings.

The main features of TripGenie include:

Customized Itineraries: TripGenie can create detailed travel itineraries based on user preferences, suggesting tourist attractions, shopping destinations, and providing booking links and maps.

Interactive and Intuitive Interface: Users interact with TripGenie via a floating AI icon that supports a seamless and streamlined browsing experience. The assistant hides in the sidebar when not in use.

Linguistic User Interface (LUI): This allows for an engaging conversational flow, where users can enter queries and receive contextual assistance without interrupting their browsing.

Enhanced Search and Booking: TripGenie automatically fills in relevant fields based on user inputs and offers refined search results, saving time and effort in travel planning and booking.

Future Features: Upcoming enhancements include a virtual tour guide feature, promising a more immersive travel experience.

TripGenie currently supports multiple languages, including English, Japanese, Korean, and Traditional Chinese.

Amy Wei, Senior Director of Product at Trip.com, emphasized the crucial role played by TripGenie, stating: "TripGenie has completely reinvented how users interact with AI in travel planning and booking, creating a conversational flow that is both human and intuitive."

TripGenie and Large Language Models (LLMs)

TripGenie uses Large Language Models (LLMs) to enhance travel planning and booking for users. James Liang emphasized that technological innovation, particularly the use of AI and LLMs, is essential to maintain competitiveness in the travel industry.

Results Achieved by TripGenie

TripGenie has improved the way users plan and book their travels. Presented as an enhancement over the previous assistant, TripGen, TripGenie employs sophisticated language model technology to provide a more personalized and seamless travel planning experience. The assistant is capable of understanding complex user queries, both text and voice, and efficiently guides users to appropriate results within the app, such as flight deals or hotel bookings. TripGenie has demonstrated impressive performance improvements, serving travelers in over 200 countries and regions, with a notable increase in order conversion rates and user retention. The platform supports multiple languages, including English, Japanese, Korean, and Traditional Chinese, and future updates are expected to introduce a virtual tour guide feature to further enrich the travel planning experience.

1. Increase in Bookings and Engagement:

Travel planning is simpler and more engaging thanks to more accurate and personalized responses, leading to an increase in bookings through the Trip.com platform.

2. Improvement in Customer Service:

Increased Efficiency: LLMs allow for more efficient handling of requests, freeing up human agents to deal with more complex queries.

3. Personalization and Planning:

Enriched User Experience: Personalized recommendations and itineraries enrich the travel experience for users, offering options tailored to their specific needs.

2/ The China Pavilion at Viva Tech is also a symbol of Chinese business tourism in France recovering

Viva Tech China Pavillon 2024 : "We always expect more from China at VivaTech."

The China Pavilion at VivaTech 2024, one of the major pavilions at the fair, demonstrated the importance of Chinese advancements in the field of technology and innovation (AI, Internet of Things, and green technologies).

This China Pavilion at Viva Tech also symbolizes Chinese business tourism in both France and Europe, particularly before the acceleration already being triggered by the Olympics.

The Pavilion hosted many notable figures, including Pascal Gentil

Et BORGET Sebastien de The Sandbox

In the frame of the China India confrerence ASIA LOOPERS (& China Connect) organized by Laure de Carayon on June 10 in Paris...

....BORGET Sebastien presented how "Asia is leading the way in building the open Metaverse". In this context, he specifically discussed the characteristics of Chinese Gen Z, who want to be active rather than passive consumers. Gen Z not only want to share their own creations but also want to create their own characters and games. Therefore, he mentioned the Sandbox solutions to to onboard this chinese Gen Z.

The success of this China Pavilion will undoubtedly encourage even more high-level Chinese players to join us for the next edition, echoing the sentiment expressed by Fran?ois Bitouzet who stated, "We always expect more from China at VivaTech."

Chinese business tourism in 2024

Figures

In 2024, Chinese business tourism in France is showing a significant recovery compared to 2019. Before the pandemic, France was one of the main destinations for Chinese business travel, with high attendance in cities like Paris and Lyon. Data shows that Chinese business travel to France is increasing at a rapid pace, notably due to the post-pandemic economic recovery and the easing of travel restrictions. This trend is reinforced by initiatives like the China-France Year of Culture and Tourism, which has encouraged cultural and professional exchanges between the two countries.

Compared to 2019, the number of Chinese business trips to France has increased by more than 20%, with a significant rise in the spending of business travelers, who are investing more in premium services and extended stays to combine business with leisure.

Fast Track

Some business travelers will be able to enter and leave French territory without having to apply for a visa each time. "The goal is to facilitate their visit by experimenting with a fast track system." At the same time, the staff responsible for issuing visas in China will continue to be reinforced.

The Top 6 Sources Outbound business tourism from China to France originates from five main Chinese regions:

1/ Guangdong Region (which is also the case in Europe, for example in Portugal or Belgium)

2/ The city of Shanghai (The "Our Water" initiative launched by the city of Shanghai on April 18 in Paris)

3/ The Zhejiang region after the visit to Paris by the mayor of Hangzhou, Mr. Yao Gaoyan, in April. A cross-border e-commerce forum, ECCFC 2024,, was organized on May 31 in Paris.

And in three other cities or regions: Beijing, Jiangsu, and Sichuan.

These six Chinese regions/cities also frequently host French delegations. For example, this was the case for the Global Urban and Rural Development Forum (GURD) held in Chengdu, Sichuan Province.

Organized by the Boao Forum for Asia, the "Davos of Asia" chaired by Ban Ki Moon, this event brought together nearly 200 officials, a hundred experts, a thousand business leaders, and more than 200 journalists to discuss the issues of balanced and sustainable development of urban and rural areas. ???? Mr. Jean-Pierre Raffarin, former Prime Minister and President of the Fondation Prospective & Innovation,, chaired this first edition along with Daren Tang, Director General of WIPO. The French delegation included business leaders ((Eurazeo, Groupama, AREP, Orthotek)), young talents from the Vivendi (Lagardère Travel Retail, CANAL+ Group, Prisma Media, Havas Sports & Entertainment), representatives from the academic world (Ecole de Management Strasbourg), and employer organizations (ONTPE), in the presence of the Consul General of France in Chengdu, Guillaume Delvallée.

Chinese Business Tourism and the Olympics

Chinese business tourism in France is expected to experience significant growth in 2024, largely thanks to the Olympics, which will attract not only athletes and spectators but also many Chinese professionals and investors interested in the opportunities offered by this global event.

For the Olympics, the China Media Group 中传公关 (CMG) has announced that it will send a large team of journalists to cover the event. Specifically, the CMG will deploy a team of 2,000 members to ensure high-quality production and broadcasting of the games, using advanced technologies such as 5G, 4K, and 8K as well as AI enhancements. This significant deployment underscores the substantial media presence and coverage that China plans for these Olympics, reflecting the importance of the event for the Chinese audience.

Chinese companies will benefit from the ESS 2024 platform, which facilitates access to contracts related to the Games for small and medium-sized enterprises (SMEs) and companies in the social and solidarity economy (ESS). This platform allows the formation of consortia and the ability to respond to large-scale tenders, thereby opening up significant economic opportunities for Chinese companies present in France. Additionally, the collaboration between China and France in the field of cultural tourism, such as the joint exhibition between the Palace of Versailles and the Palace Museum in Beijing, is also expected to stimulate tourism and cultural exchanges between the two countries in 2024.

With 354% of Chinese tourism arrivals, Olympics will be a catalyst for accelerating tourism in France

According to the latest figures from Atout France, air arrivals of Chinese visitors to France are expected to increase by 354% during the Olympic and Paralympic period from July 19 to August 29. Fliggy indicates that it is working on offers for Chinese tourism in France just before and just after the Olympics, taking advantage of an Olympic effect when the cost of a stay in Paris will still be or will have returned to normal. Moreover, the celebration of the Olympic spirit is at the heart of Franco-Chinese relations for the year 2024.

Impact on the Image of French Destinations in China

In the fall of 2022, the city of Deauville was chosen by the Chinese Taekwondo Federation. "We have received five Chinese delegations over the past two years," says Philippe Augier, the mayor. The city was indeed chosen by the Chinese Olympic delegation to host approximately 230 athletes and their accompanying staff starting July 4. They will be able to take advantage of the city's numerous sports facilities, labeled "Terre de Jeux 2024," its convention center, and its peaceful Norman environment, away from the anticipated hustle and bustle in the ?le-de-France region during the competition. The mayor mentioned "the direct economic impacts, which are still difficult to quantify because we don't know exactly how many will make the trip. And then there are the image impacts! This year, we are celebrating the 60th anniversary of the establishment of diplomatic relations between France and China. Deauville will be talked about all over China! Can you imagine?"

+++++++

The recovery of Chinese business tourism in France, which, like in many other European countries, has been preceding the leisure tourism recovery since March 8, 2023, is accelerating with international events. After Viva Tech, the Olympics will propel Chinese tourism in France. Indeed, according to Atout France, air arrivals of Chinese tourists are expected to increase by 358%. Will this surge in Chinese tourism, especially for the Olympics, definitively relaunch Chinese tourism in France and allow France to regain its position as the top European destination for Chinese tourists during the October 1 holidays or for the Chinese New Year of the Snake in 2025?

The stakes are even higher as Chinese tourists became the highest spenders again in 2023 ($196.5 billion vs. $255 billion in 2019), and they could reach 130 million in 2024 (compared to 155 million in 2019). The French Government measures announced on May 6, both for business tourism (Fast Track) and for Chinese leisure tourism, are moving in this direction.

Furthermore, through Trip Genie, the AI tool of the leading Chinese OTA, China continues to accelerate in AI (with Vidu and Kling, two recent text-to-video solutions), which are innovation drivers in tourism. James Liang, co-founder and chairman of the Trip.com group, emphasized the importance of innovation and AI to stay at the forefront of the travel industry as Chinese tourists, becoming the most numerous and highest spending in the world, are crucial not only for international destinations but also for Chinese OTAs. The success of AI Trip Genie among a Chinese Gen Z that favors generative AI by over 60% (compared to 43% in 2022) is also explained by how Trip.com has managed to enhance the travel experience for customers, making planning and booking simpler and more accurate, thanks to AI.