Back in 2015, when Airbnb announced its expansion in China, Chinese startup Tujia, which had begun life with a B2C model, began to pay more attention to C2C.
Come the end of June 2016, Tujia had acquired short-term rental website Mayi.com and four months later it announced its acquisition of the apartment and housing rentals division of Ctrip and Qunar.
Last year Tujia served a total of 90 million users, increased its inventory by 300% and grew booking transactions by 500%.
So far, Tujia has more than one million listings registered online, and the 150 million daily active users on Ctrip’s App are potential customers for Tujia.
Fishtrip is the subject of Tujia’s most recent acquisition. Tujia is to integrate Fishtrip with its accommodation services, to fully acquire and combine Fishtrip’s team into its overseas business division, and to make overseas expansion one of its priorities in 2018.
COO Yang Changle says the point of the acquisition lies in whether it can bring a substantial contribution to business growth, and reach a supply-demand balance.
Technology and experience innovation
‘Tujia Host’, an app that resembles the working principle of hospitality PMS, enables hosts to post listings, check and manage room status on platforms, and even to work out revenue management solutions.
Smart B&B increases the added value of homestay products and user experience by introducing smart house appliances.
Collaboration with Airbnb?
In February, Airbnb’s 10-year plan highlighted the development of housing management, host community, and further coverage of hotels and destination services. Changle says:
“We have been testing out Airbnb’s strategies in China, except for its destination business model, which was only tested on a limited scale. In its expansion overseas, Tujia will reference Airbnb’s experience, including how to enter a new destination and then how to expand listings there.
“I’ve always seen the possibility for Tujia and Airbnb to work together. It is quite worthwhile to explore possibilities of a cooperation in shared inventories and room status and even the promotion of the legalization of global B&B business.”
Interestingly, Glade Brook, who invested in both Uber and Airbnb, also participated in Tujia’s latest round of financing. Its founder and chief investment officer Paul Hudson says that Glade Brook found it amazing to be involved in the investment and was optimistic about China’s short rental market as well as Tujia’s leading role in it.