Tourists targeted
Chinese tourists are rejecting hotels in favor of short-term rentals that give travelers a more relaxed experience at a fraction of the cost. A number of websites have sprung up to service this growing market.
Chinese websites offering shortterm rentals attract more tourists, promising excellent prices and a “home away from home” experience.
Chinese websites offering short-term rentals are attracting growing numbers of tourists because of their excellent prices and the “home away from home” experience they offer.
The websites charge a commission from homeowners and real estate managers to connect them with tenants who want to rent places to stay. This type of service originated in the United States, with the advent of Home Away and Airbnb in 2005 and 2008.
Wang Lin rented a villa in Qiandao Lake, Chun’an county, Zhejiang province, through Chinese website Tujia.com. She rented the villa for a vacation with seven family members during the Mid-Autumn Festival in 2013.
“It was very pleasant. We lived within the scenic spot and felt like we were inside a beautiful landscape painting. We could see green bamboo and the lake through the window,” says Wang, 45, who works in media in Beijing.
“It’s a good deal and very convenient for families. The elderly lived on the first floor because they walk slowly. Children like to climb up and down, so they lived on the third floor,” she says.
Wang also liked that the villa provided extra services, such as a shuttle bus to pick them up at the airport and a butler service.
The butler made breakfast for the family and arranged for a local woman to take them to the market to buy groceries and vegetables, and teach them about the region’s cuisine. They were then able to cook dishes together as a family.
“We were very satisfied with the family reunion dinner. In the past, we could only dine at restaurants and couldn’t really experience the local lifestyle,” Wang says.
Qi Hang, 25, an office worker from Beijing, also enjoys staying in a rented home, rather than a hotel.
“It’s like being in your own home, and it is cozier than a hotel. It felt good that all of us could play games togeth- er in the big sitting room,” Qi says.
In November, Qi and nine of her coworkers went to Baiyangdian Lake, Hebei province, for a team building and rented two villas from Tujia.com for one night, for more than 2,000 yuan ($320).
“You only have to bring some clothes because of the good quality amenities such as shampoo, slippers and laundry powder,” she says.
Qi likes the considerate, personalized service. She says it’s sweet that the person in charge of the property texted her about the local weather, welcomed them on arrival, and told them where they could get a bite to eat.
“It’s good for vacations with families, friends and children, who can stay together in one villa, rather than being separated into different rooms in a hotel. Some places even allow you to bring your pet,” she says.
Luo Jun, founder and CEO of Tujia.com, says the market for online short rental websites in the US is mature, but there is still a long road ahead for the Chinese market. For example, prices are very sensitive and the industry has no set standards.
Founded in 2011, Tujia.com offers apartments and villas at different price levels in about 170 domestic and 180 overseas destinations.
“It’s difficult to promote the service in China if online short-term rentals don’t offer proper offline services,” Luo says.
He says Tujia.com offers professional property management, ranging from decoration, amenities to a 24-hour call center and reception.
Besides individual owners, they are cooperating with Chinese real estate developers and are in charge of a certain amount of houses or villas in one community.
“It’s a good trade. Homeowners can live in it when they want to, and get the rent revenue when they are away. They can also swap lodgings with each other, using the days that the property is not rented out,” he says.
According to Luo, they’ve signed contracts with 500,000 apartments and villas, some of which are being renovated, and are in negotiation with 900,000 more.
“It costs a lot of money to build a fancy hotel and takes a long time to recover the cost. We only sign oneyear contracts, and if there is no tenant, we don’t have any overheads,” he says.
Most Chinese short-term rental websites are using the same pattern as Airbnb, and play the role of middleman between owners and tenants. Besides safety concerns, some may find the actual housing is different from online photos, and not as good as they expect.
“We provide more than 40 trust and safety tools, which is at the core of everything we do. Tenants should read all the information your host’s profile provides and communicate extensively on Airbnb before, during and after a reservation,” says Alan Chang, the managing director for Airbnb Northeast Asia. In China and other destinations, visitors are attracted to Airbnb’s attractive houses with unique style.
According to Chang, China is an incredible opportunity for Airbnb because of the growing number of Chinese tourists. Airbnb has localized much of its product, and now has a fully translated website and Chinese payment options.
“International travelers from China love our product. You will be able to experience your destination, no matter where it is in the world, like a local, and have a much more unique and exciting trip. For example, staying in a tree house in California or an amazing villa in Thailand,” he says.
“The success of such websites are a typical example of the Internet helping to make the best use of idle resources in society. The pattern is based on the trust system, but the system in China is still being built and improved upon,” says Li Xinjian, professor of the School of Management, Beijing International Studies University.
According to Li, other advantages Airbnb has in the US are the country’s convenient road transport system, popularity of private cars and a mature car rental system.
It costs a lot of money to build a fancy hotel ... We only sign one-year contracts, and if there is no tenant, we don’t have any overheads.” Luo Jun, founder and CEO of Tujia.com