Airbnb is making a big push into China, hoping to plant a flag in the country’s nascent home-sharing market.
There’s strong competition in China — Airbnb currently has just 7% of the home-sharing market, dwarfed by domestic leaders Tujia and Xiaozhu, who together account for nearly half of the market. (Xiaozhu is pushing to take on Airbnb outside of China as well.)
The Chinese home-sharing market itself is also relatively small compared to the U.S. at just 5% of China’s lodging industry, compared to a 10% market penetration in the U.S. Airbnb is hoping to ease its Chinese expansion by working with government regulators.
Airbnb has found popularity with Chinese millennials, who make up 69% of Airbnb’s customers in the country. Around 70% of Chinese millennials own their home – a higher%age than Americans across all age groups – and they often list their homes when they travel. Millennials in China outnumber the entire population of the U.S.
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