How does the short term rental market profit? Analysis of 7 online short rental platform models at home and abroad

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2013 years, the ant short rental and piggy short rental of these two online short rental website at the same time announced the wind to invest tens of millions of dollars at the level of investment, for the cold winter in the slump of the wind market brought a hint of spring. China online short rental market after 2011 years of start, has begun to take shape. At present, the majority of short rental households from tourism and business travellers, the rapid development of China's online tourism market driven factors, the 2012 China online short rental market has exploded in growth. Below we analyze and compare the domestic and foreign online short rental platform business model and profit model similarities and differences, as well as the future development trend.

Online short term rental market definition

Online short rent: Refers to the tenant of the house through the Internet and the way the Internet access and booking of short-term housing, and with the owner or operator of the house through the online platform to pay some or all of the room, online platform through the Rent commission or advertising fee model to profit.

The development background of online short rent market

1 The original single hotel accommodation model has been unable to meet the consumer increasingly personalized, diversified needs. Short rental price is higher than the same type of hotel.

2 after the housing bubble, the tourist attractions and the first-tier cities appeared a large number of vacant houses. Short-term business operations are more profitable than long-term rental income.

An analysis of online short-term rental industry chain

Landlord: The owner of the house, by the time of the private house for short-term rental, the daily charge.

Intermediary agent: Housing operators, such as personal property operators, property companies, real estate agents. Most intermediary agents from the landlord signed a long-term lease contract, and then the house released to the online short rental platform, through the short rental model for rent, to earn the difference.

Online Short rental platform: online short rental platform for landlords and tenants to provide on-line booking transaction services, through the independent operation of the offline team or with intermediary agents, the collection of offline listings management. and to provide consumers with housing search and transaction security.

Media: Consumers through different media into the short rental sites, including search engines, classified information, real estate portals, online travel sites.

Tenant: Customers with travel needs, including travellers, poor business.

Online short rental platform business model

At present, the whole online short rental industry, divided into three categories: one is an independent entrepreneurial web site, the second is dependent on the original business related to the Internet company; third, the traditional housing intermediary launched a short rental website.

Positioning: For travellers and business travellers to provide online short rental apartment search, inquiries and transaction services for the owners to provide free housing information publishing and hosting services.

Core advantages: Availability: Short rental platform core sales resources are available, the landlord's demand for the market is a short-term rental platform for the development of the promotion. User: With the development of the network tourism market, the demand for short rental of users also increases rapidly, speeding up the development of short rental market.

Core Competencies: Marketing: Marketing ability will provide the import of traffic to short rental market, and become an important means to enhance the influence of the platform. Operation: With the rapid growth of the availability of housing, online rental vendors on the platform for the maintenance and management of the listing has become an important factor in market development.

Products: Short rental: Short rental platform for the most core products for short rental sources, to provide users with rental services. Housing trusteeship: With the development of the market, the future short-term rental platform will also provide agent hosting services for landlords, thereby reducing the landlord's operating costs.

Charging method: Housing Commission: short rental platform by the landlord to bring the sale of users, charge a certain commission. Join Agent: Short rental platform in the future will be to rent intermediary or agency agencies to provide platform marketing services, and from a certain fee to join.

Client: Landlord: Landlord will become the main customer source of future rental platform, the future personal landlord will be further increased. Housing intermediary: With the rental platform for the promotion of brand influence, there will be more housing intermediary choose a short rental platform to promote its listings.

Online short rental platform profit model

Domestic: Short-term rental web site at this stage of the profit model mainly by earning sales commission, the proportion of 5% to 10%. For example, love daily rent to the landlord to collect 5% of the transaction amount, while the landlord price based on a premium of 12%, and travel the world, in order to accumulate users and availability, and even announced in April 2012 free Trading Commission, "in the short term is not going to profit." There is another profit point in addition to the trading commission of the Home Network: The private housing prices by their specialized pricing staff according to the season, geographical location, housing conditions and other factors to determine, the owner only bear the property costs, all other management costs by the passers-by bear, the income of both sides 55.

Overseas: The US HomeAway is a diversified profit model of "Advertising + Trading Commission + value-added Services": 87% of its revenue comes from advertising revenue, while charging the landlord for a transaction commission, providing the property or landlord with a paid information display service, and charging for the number of tourist inquiries and online bookings; Charge of travel insurance, housing damage protection, and other value-added services are also the new fees they are developing. Airbnb will charge the landlord 3% of the transaction amount and charge about 8% of the service charge to the tenant.

The development scale of domestic online short rent market

　　

　　

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5 more representative short-term rental sites in China (sorted by time of establishment)

Eiges Rent

Establishment Date: June 2011

Headquarter: Beijing

Team background: Zhang Jo, CMO Guodong, CEO, Zhang Ben Law, COO

Investment and Financing/acquisitions: July 2011, 2 million dollar angel investments;

Profit Model: Trading Commission. With ants short rent, Airbnb.

Charge object: Landlord. With ants short rent, Airbnb.

Charging method: 5% of the transaction amount to the landlord, while the landlord to the price based on a premium of 12% on the website for sale.

Types of houses: apartments, residences, hotels, guesthouses, villas. Short rent with ants.

Home Source: The main, part of the hotel-style serviced apartments, hotels, inns. Short rent with ants.

Swimming in the world

Establishment Date: September 2011

Headquarter: Beijing

Background: parent company is SouFun

Team background: Jian, COO

Profit model: Different from other short-term rental sites, the abolition of trading commissions, and through the conversion of unused housing resources to obtain income. Also launched the "Landlord Support Program" for short rental east to provide training, packaging, promotion and other full-service, so that its own profit at the same time, can provide quality services for the tenant.

Charge target: The current is open, free, the strategy of winning the win

Charge way: At present free

Types of houses: Family hotels, youth hostels, vacation villas, courtyard houses, ordinary residences, apartments, castles, film and television studios, yachts and so on.

Home Source: A large number of houses from the "professional landlord" that their hands have several sets of houses, and even for others to take care of the house, from the intermediary agencies are not many listings.

Ants Short Rent

Establishment Date: November 2011

Headquarter: Beijing

Background: NET's website (now split)

Team background: Yang Hao Chung, CEO

Investment and financing/acquisitions:

October 2011, net from the Wheat field acquisition mayi.com double spell domain name, push the market short rent;

November 8, 2011, net spent 20 million dollars to build the "Ant short Rent" on-line;

January 6, 2013, announced the merits of capital, Blue Venture investment, Sequoia Capital nearly million dollars a round of financing. And at the same time announced that the ant short rent officially from the net, net will be more focused on classification information services in the future.

Profit Model: Trading Commission. With Love daily rent, Airbnb.

Charge object: Landlord. Same Love day rent.

Charge method: 10% of the turnover

Type of house: apartment, residential or dormitory around the university, Sea View building, garden villa, forest cabin, etc. Same Love day rent.

Home Source: The main, part of the hotel-style serviced apartments, hotels, inns. Same Love day rent.

Passers-by

Date of Establishment: 2011, December 1 officially on-line

Headquarter: Beijing

Team background: Rojun, co-founder & CEO, Sina le Ju original general manager; Melissa Yang, co-founder & CTO, American online vacation rentals company Escapia CTO, Zheng, operations director, Art Dragon Net original operations director, Zhanghai, technical director, former Microsoft Senior development manager; to cure, chief architect, Zeng Yi Long Hotel system senior management position.

Investment/acquisition: The first round of financing has been completed in May 2012, with four investment agencies, the speed of light, Ding Fai, and Ctrip and HomeAway have injected capital.

Profit Model: Escrow service/Transaction Commission.

Charge object: Landlord. With ants short rent, love day rent, Airbnb.

Charging method: Deduct sales commission and business Tax (5.55%), according to the owner to enjoy 60%, passers-by enjoy 40% of the proportion of distribution.

Type of house: self-managed vacation apartments, villas

Home Source: At present, sway hotel apartments mainly

Piggy Short Rent

Establishment Date: August 2012

Headquarter: Beijing

Team background: Chen Yu Wang Liantao, co-founder

Investment Financing/Acquisition: January 6, 2013 announced tens of millions of dollars in last year's financing, investors did not disclose

Profit Model: Trading Commission. With Love day rent, ant short Rent, Airbnb.

Charge object: Landlord. With Love day rent, ant short rent, passers-by, HomeAway.

Charging method: Charge 10% Commission.

Type of house: Apartment, hotel/guesthouse, inn, ordinary house, theme room, Courtyard/house, Villa, sea-View room, farmhouse, other.

Home Source: The main person. With Love day rent, ant short Rent, Airbnb.

Analysis on the capability of online short rental platform manufacturers

　　

Photo source: Yi Zhi ku #p# subtitle #e#

Overseas 2 typical short term rental websites: (sorted by set time)

HomeAway

Establishment Date: 2004

Headquarters: Texas State Austin, USA

Team background: Brian Sharples,ceo; Carl Shepherd,cdo; Brent Bellm,coo; Tom HALE,CPO; Ross Buhrdorf,cto; Lynn ATCHISON,CFO.

Investment and financing/acquisitions:

November 13, 2006, the acquisition of VRBO website;

October 2, 2007, the acquisition of OwnersDirect.co.uk;

February 4, 2009, the acquisition of homelidays.com;

March 3, 2010, the acquisition of BedandBreakfast.com;

April 4, 2011, the acquisition of realholidays.com.au;

January 2005, a round of financing, 49 million U.S. dollars, Austin ventures/red dot venture;

January 2006, the B-round investment of 160 million U.S. dollars, institutional Venture, Trident capital;

November 2008, E-round investment of 250 million U.S. dollars, Marvell Crossover venturesinstitutional venture/red dot venture;

October 2010, Google Ventures invested 25 million dollars

June 29, 2011, landing on Nasdaq

Profit Model: Transaction commission/advertising fee/third party cooperation/search results ranking.

Charge object: Landlord. With ants short rent, love day rent, passers-by.

Charging method: 50 listings below, according to 300 U.S. dollars per year collection, 50 listings above, according to a certain percentage of the total turnover charge Commission.

Type of house: Home, apartment.

Home Source: Property manager mainly.

Airbnb

Establishment Date: July 2008

Headquarters: San Francisco, USA

Team background: Nathan Blecharczyk, President and co-founder; Brian Chesky, president and co-founder.

Investment and financing/acquisitions:

June 2, 2011, the acquisition of German Accoleo;

May 2011, a round of financing, 7.2 million U.S. dollars, Sequoia Capital, Greylock, SV Angel Funds, Ashton Kutcher and youniversity VCs, etc.

July 2011, the B-round financing of 112 million U.S. dollars, valued 1 billion U.S. dollars, Andressen Horowitz, DST Global and general Catalyst

Profit Model: Trading Commission.

Charge target: Landlord and tenant.

Charging method: 3% of the transaction amount to the landlord, and 6%-12% service charge to the tenant.

Types of houses: apartments, family houses, hotels and other (castles, treehouse, boats, etc.).

Home Source: The main person.

Note: All the above information are sourced from the short term rental website and media related reports #p# subtitle #e#

Forecast of future development trend of online short rental platform

Market environment: Domestic short-term rental market in the next two or three years will still be in the market education stage, with self-help travel ratio and short rental mode of awareness further upgrade, in 2014 short-term rental market or will usher in the outbreak of growth.

Operating mode: Short rental platform distribution will be from the first-tier cities and tourist attractions around the two or three-line city expansion, housing intermediary agents in the near two or three years will continue to expand the availability and operation of the maintenance and so play an important role. Short-term rental platform will be to the availability of diversification and service standards in the direction of development.

Profit model: As the market is still in the education stage, 0 Commission mode in the near 2-3 years will be more welcomed by the market, the future profit model or will tend to homeaway profit model development. When the short-term rental platform by the housing owners to bring stability, will be charged to the latter or advertising fees.

Cooperation mode: Short rental platform will be introduced into insurance companies and property management company, on the one hand, to ensure the landlord and tenant property security, on the other hand, to ensure the day-to-day maintenance of the house. In addition, the short rental platform will be with the online travel companies to establish cooperation, online travel sites can bring traffic to short-term rental sites, and short rental sites can enrich the online tourism availability type, effectively meet the personalized needs of tourists.

At present, the article mentioned several representative online short rental platform business model, profit model to replicate overseas mature short rental platform HomeAway and Airbnb. Moreover, the homogeneity of these several phenomena is more serious. However, the wind investment in the domestic short-term rental industry and the future development of the market is more optimistic. Along with the online short rent model is gradually recognized by the market, the future short-term rental market users will be diversified development, supporting products and services will continue to innovate. For the current short-term rental market in general lack of new profit model will play a good role in promoting.

On the profit side, it is too early to talk about a profit model when a market has not yet formed a scale. The homeowner should be aware that this platform can help him, and that if it reaches a certain scale, profitability is inevitable. The potential of online short rent is huge, and it has a good pulling effect on real estate and tourism industry. But at present the market size and maturity compared to overseas is still very small, not suitable for radical, large-scale to drive up this is still in the early development of the market, is not conducive to the development of short-term rental industry. In fact, online short rental industry than group buying business threshold is higher, need more input, enter need to be cautious.