Hi there,

In times of rising geopolitical tensions and a trend towards introspection, it's easy to overlook the innovations taking place outside our immediate environment.

This is particularly true for China, a country that's years ahead in its digital journey, especially with its mobile-first population.

At the Lufthansa Innovation Hub, we've consistently focused on the dynamic Chinese tech ecosystem, particularly innovations impacting travel and mobility.

Today, we're diving back into this vibrant landscape.

Our team in Singapore has examined the WeChat travel ecosystem in depth, exploring how Asian airlines are using WeChat to enhance customer service.

While WeChat's role in Asia might seem irrelevant to Western travel brands and airlines due to its regional specificity, we believe this viewpoint is shortsighted.

The WeChat strategies deployed within the Chinese travel sector hold invaluable lessons, also for us in the West.

Our lead Analyst in Asia, Xiaowei, crafted a detailed article on this topic.

So, even if you're tempted to drift away at this point, thinking this doesn't apply to your context…

… we encourage you to stay awake and keep reading.

There's likely something valuable for everyone.

Enjoy.

Your Lufthansa Innovation Hub Team

Survey

Decoding the Future of Air Taxis

Before we dive into the WeChat ecosystem in Asia, we need a tiny favor from you.

We're deep into expanding our research on the AAM and eVTOL sector, and your input could be incredibly valuable.

In collaboration with our parent company, we've crafted a survey to gather insights on:

Public awareness and attitudes towards air-taxi services.
Potential willingness to pay for air-taxi rides compared to traditional transport modes.
Readiness to adapt behaviors for air-taxi use, such as handling luggage logistics.

It would mean the world to us if you could take a few minutes to fill out the survey.

Your insights are crucial, and we promise to share the findings in an upcoming edition of this newsletter.

Fill Out Survey

Thanks a ton!

Now, let's talk about WeChat.

Research

WeChat Lessons for Airlines

Let's get the basics right:

WeChat stands as one of the most remarkable mobile app success stories the world has ever witnessed.

Owned by Chinese tech giant Tencent, the app has evolved from a simple messaging service similar to WhatsApp into a genuine superapp with more than 1.3 billion users.

Predominantly popular in Asia, especially China, WeChat's functionalities now span a wide spectrum—from messaging and social media to real-time location sharing, as well as extensive services like streaming, gaming, and, critically, payments.

This transformation was largely fueled by the introduction of so-called "mini-programs" back in 2017, which allowed third parties to develop a range of in-app services, including transactional capabilities essential for retail sectors.

Consequently, numerous retail verticals, including the travel industry, have integrated into the WeChat ecosystem.
Particularly within the travel sector, Asian airlines have capitalized on WeChat's extensive reach and versatility.
Both domestic and international carriers are now leveraging WeChat not just for brand marketing and PR but also for embedding more complex service functionalities such as customer support and flight bookings through tailor-made mini-programs.

This integration has paved new avenues for enhancing customer interaction and improving the travel experience.

So, how are airlines utilizing WeChat's mini-programs to revolutionize the traveler experience?

We evaluated and ranked their effectiveness and explored how these innovations could potentially inspire similar transformations in the digital travel landscape of the Western world.

Airlines' Strategic Engagement with WeChat

To get started, let's delve into the airlines that have most effectively mastered WeChat thus far.

The chart below ranks the top ten airlines based on their WeChat presence throughout 2023, measured by the total views on their content.

As expected, Asian carriers dominate this list, reflecting their strategic imperative to engage directly with their primary customer base.

However, what unifies these diverse airlines when it comes to their use of WeChat mini-programs?

The key lies in accessibility and utility.

WeChat mini-programs offer users effortless access with just a simple tap within the app, equipped with features specifically tailored for in-trip assistance.

This approach not only simplifies the user experience but also ensures that travelers have immediate access to essential services without the burden of additional downloads.

As discussed in a previous analysis from us, this convenience is a significant advantage, especially for travelers reluctant to clutter their devices with numerous travel apps.

Assessing Airlines' WeChat Mini-Programs

While establishing a WeChat mini-program is a step forward, its true success lies in delivering tangible benefits that cater to travelers' needs—such as efficient flight booking or adept handling of flight disruptions.

To evaluate the effectiveness of these programs, we analyzed several top airlines noted in the previous ranking, complemented by a few smaller Chinese airlines recognized for their innovative mini-programs.
Our evaluation criteria were based on the diversity and sophistication of services offered through these mini-programs.

The chart below presents our findings.

As you can see, Air China has the most comprehensive WeChat mini-program, followed closely by other major airlines.

Here's what sets their programs apart:

1. Flight Booking

Nearly all airlines in our study allow travelers to book flights directly via WeChat.

Air China and Air New Zealand are particularly noteworthy. They support complex multi-stop itineraries directly through the app, thus obviating the need to visit external airline websites or online travel agencies.

2. Management of Flight Disruptions

Apart from Air New Zealand and Scoot, all featured airlines have incorporated basic tools to manage flight disruptions within their mini-programs.

For instance, they enable passengers to obtain necessary documentation for compensation claims in case of cancellations.

One airline, China Southern Airlines, offers enhanced functionality by allowing passengers to rebook their tickets directly through the mini-program.

3. Customer Service

Five of the nine airlines provide direct customer service options within their mini-programs.

A common approach involves incorporating chat-based customer support, which utilizes WeChat's native messaging features to facilitate smooth and familiar interactions.

This integration allows airlines to offer support in a context that users are already comfortable with, mirroring the ease of private conversations found elsewhere on the platform.

4. Loyalty Program Integration

Several full-service carriers have integrated their loyalty programs into their WeChat mini-programs, significantly enriching the user experience.

For example, China Southern Airlines allows passengers to use their accumulated miles for a broader range of services beyond mere travel needs.
Moreover, loyalty program details like check-in privileges and lounge access are seamlessly integrated, simplifying processes and enhancing the overall travel experience.

In summary, all these functionalities not only streamline travel but also enrich the customer journey, demonstrating the potential of WeChat mini-programs to significantly transform airline customer interaction.

Exploring Further Success Factors of WeChat

Besides offering easy accessibility to crucial information and booking functionalities, WeChat's mini-programs offer another key benefit.

The development framework for WeChat mini-programs offers a streamlined alternative to traditional app development, which often requires building and maintaining separate versions for iOS and Android.

Mini-programs, however, are developed just once and housed within the WeChat ecosystem, significantly reducing development and maintenance time.

This efficiency allows airlines to quickly roll out and iterate on services tailored to specific traveler needs.

For example, China Southern Airlines has utilized mini-programs to simplify complex processes like pet travel reservations, making it as straightforward as booking a passenger flight.

Importantly, by addressing such niche traveler needs through mini-programs, airlines can efficiently cater to specific customer segments without the extensive time and expense required to update full-fledged airline apps.

A Call to Action for Western Airlines

As we have shown, WeChat mini-programs have demonstrated their value as effective customer engagement tools.

While WeChat's dominance is unique to China and Asia, there are compelling reasons for Western airlines and travel brands to explore this mini-app landscape.

Interested to learn how exactly?

Then follow us into the full article on TNMT.

Read Article

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Wayve – The London-based AI-powered autonomous driving company raised $1.05B in Series C funding, led by SoftBank Group, with participation from Nvidia and Microsoft. The money will be used to further develop its autonomous technology.

Charge Zone – The Indian electric vehicle (EV) charging network company secured a $19M commitment from British International Investment (BII), the UK's development finance institution (DFI) and impact investor. The funds will be used to expand its high-speed charging network for electric cars, buses, and trucks across key cities and highways in India.

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Hometime - The Sydney-based property management platform raised $6.6M of funding in a deal led by Fifth Estate Asset Management. The funds will be used to pursue growth through a merger and acquisition strategy.

Naya Homes – The Mexico City-based vacation rental management specialist raised $3.1M in fresh funding, led by Primary Venture Partners. The money will go toward expanding into 10 new Mexican markets, including Cancun, San Miguel de Allende, and Acapulco.

You. Smart. Thing. – The UK-based travel demand management platform raised $1.5M in funding from backers, including the West Midlands Co-Investment Fund (WMCO) and business angels. The funds will be used to enhance its proprietary "eco-algorithm," which will help local authorities reduce region-wide carbon emissions in line with socio-economic objectives.

Fynch Mobility - The Dutch sustainable mobility startup raised over $1M in funding, with about $400K coming from the European Commission's REACT-EU program and the remaining amount through a consortium of business angels. The funds will be used to scale its sustainable mobility platform for B2B customers.

Allmytour - The South Korean accommodation booking platform secured a $730K pre-Series A bridge investment from Shinhan Venture Investment and Korea Investment Accelerator. The funds will be used to strengthen its supply chain, improve its cloud channeling solution, and launch a dedicated app.

– M&A –

Gett – The UK-based ground transportation platform and ride-hailing app Gett was acquired by Israeli smart mobility platform Pango for $175M. Pending regulatory approval, Pango intends to support Gett's growth in both Israel and the UK.

Clubrural – The Madrid-based rural accommodation rental platform was acquired by Munich-based vacation rental company Holidu for an undisclosed sum. The deal is a strategic move by Holidu to expand into the growing market of rural accommodations.

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Quick Parking – The Amsterdam-based airport parking operator was acquired by UK-based ancillaries provider Holiday Extras for an undisclosed amount. As part of the deal, Holiday Extras will take over the brands, website, distribution partnerships, supply arrangements, technology platform, and more.

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