Marriott International announced a partnership with Alibaba’s financial arm, Ant Financial, to roll out Alipay across 10 hotel locations for the growing wave of globetrotting Chinese travelers.
The partnership will essentially allow travelers staying at select Marriott locations to pay for their stay, dining and a whole range of services, including event bookings, right from their smartphone using Alipay, according to a press release.
While Marriott is currently offering the service at locations in Hong Kong, Beijing and Shanghai — all remain concentrated in China — it plans on expanding the service to other parts of China and other Southeast Asian countries by mid-2016.
To kick off the partnership, the hotel chain, which has reported $14 billion in revenue in fiscal year 2014, is also offering a discount of up to 8 percent on its best available rates when travelers book through Marriott.com or Marriott.com.cn.
Considering Alipay’s vast popularity, which accounts for 80 percent of market share in China, the partnership is a strategic move for Marriott as a growing base of Chinese travelers are developing taste for convenience and comfort that extends beyond good room service. According to a recent report by the Chinese International Travel Monitor, about 59 percent of Chinese international travelers reportedly rated local payment solutions as the second most important feature after free Wi-Fi.
“We approached Marriott International because of its strong brand recognition and growth plan in Asia and around the world, making it an ideal partner for Alipay. We see this relationship as the beginning of a deeper collaboration between the two brands, all with the Chinese consumer in mind,” said Sabrina Peng, president of Ant Financial’s international business unit.
As Marriott expands the mobile payments option across other hotel chains, it is set to capture business from the fast-growing travel-loving Chinese population, which is expected to soar to 200 million by the end of next year.
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