China Internet & New Media - Key takeaways from Douyin local services expert call

Research evidence excerpt

China Internet & New Media - Key takeaways from Douyin local services expert call

Nomura | China Internet & New Media 24 June 2026

standard group-buying vouchers.

Increased access to high-star hotels is also benefiting Douyin's calendar room booking

service, following the regulator's anti-trust investigation into the market leader, Trip.com

(TCOM US, Neutral). The expert believes Meituan may have also benefited from the

easing of Trip.com's requirements on exclusive supplies for these high-star hotels. As a

result, Douyin's high-star hotel room-nights as a percentage of total hotel room-nights has

grown from less than 9% in FY25 to ~14% currently.

Meituan's operational advantages over Douyin

Meituan demonstrates a more mature and refined operational framework compared to

Douyin in the local services sector. The expert specifically detailed Meituan's advantages

across three critical areas:

• Personalized subsidies: Meituan leverages deep user data—including past

consumption history, browsing behavior, and ordering habits—to dynamically design

personalized final transaction prices. Douyin currently does not execute this type of

highly personalized subsidy distribution, and the expert notes that Douyin's current

algorithmic personalisation yields mediocre operational results.

• Membership operations: Meituan aggressively utilizes its established membership

tiers (such as Black Gold, Platinum, and Black Diamond) to drive engagement and

retention. For example, during May and June, Meituan directed concentrated high-star

hotel subsidies specifically toward these core members. The expert also highlighted

that a substantial portion of Meituan's premium members are valuable business

travelers. Conversely, because Douyin's management is currently prioritizing near-