Case Study: Vacation Rental Market In China

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Vacation Rentals Market in China: Vacation rental websites are growing in popularity among travelers all over the world as they seek out cheaper alternatives to hotels. Property owners also gain a new source of income. The Chinese vacation rental market is in its infancy relative to other developed markets such as US. However, the Chinese market is crowded for this crowd-sourced short-term lodging in citizens ' homes and apartments as more than 10 rental websites already operating in the region. Chinese entrepreneurs are known for their abilities to clone fast and clone well. Homegrown, Airbnb clones started to emerge in late 2011 due to very low barriers of entry especially with few website developers (such as BistroStays, Claydip) offering …show more content…

It has been chasing local competitors in the region, primarily in Southeast Asia. Recently, they have completed an Asian expansion, opening operations in Thailand, Malaysia and the Philippines. However, the focus remains on incoming Western travelers, with the site mainly operating in English. Listing on Airbnb website is free, however, Airbnb charges a 3% fee to the property owners for all bookings and 6-12% of the booking price to renters. Tujia.com: Tujia is the main competitor for Airbnb as it has strong presence in the Chinese market and also have listings overseas. Tujia has more than 80,000 properties listed in about 130 Chinese cities . It has also added over 2,000 overseas listings, in over 60 destinations , in conjunction with its American co-investor HomeAway, a similar property-rental website in the U.S. Tujia has attracted interest and funds from China’s biggest online travel company, Ctrip, among other Chinese investors5. Tujia’s rental revenue exceeded 100 million Yuan last year . Tujia take a 10% rental commission on listed Chinese properties it doesn’t actively manage, as well as those posted by overseas

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