Analysis on profit model of 7 typical online short rental platforms at home and abroad

"Entrepreneurial State" 2013 years, the ant short rental and piggy short rental of the two online short rental web site 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 of 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 profit. Online short-term rental market development background 1 The original single hotel accommodation model has been unable to meet the consumer's 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. Analysis on the online short-term industry chain landlord: The owner of the house, by taking a short-term lease of the individual's vacant home, collects fees on a daily basis. 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 entire 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, for users to mentionfor 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. Domestic short-term rental market development Scale Domestic 5 more representative short term rental web site (sorted by set up time) Love Day rent set up time: June 2011 Headquarters: Beijing team background: Zhang Jo, CMO; Guodong, CEO; Zhang Ben Law, COO Investment and Financing/acquisition: 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. Travel World established Time: September 2011 Headquarter: Beijing background: Parent company is SouFun team background: Jian, COO profit model: different from other short-term rental sites, cancellation 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.Charging target: Currently open, free, win the strategic fee: the current Free Commission housing type: Family hotels, youth hostels, vacation villas, courtyard, ordinary houses, apartments, castles, film and television shooting, yacht 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. Ant short Rent set up time: November 2011 Headquarters: Beijing background: NET's website (now split) team background: Yang Hao Chung, CEO Investment/acquisition: October 2011, net from the wheat field to buy 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 the line; January 6, 2013, announced the advantages of capital, Blue Chi Venture, Sequoia Capital of 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. Charging method: 10% of the housing types: apartment, the surrounding residential or dormitory, sea view buildings, garden villas, such as Forest House. Same Love day rent. Home Source: The main, part of the hotel-style serviced apartments, hotels, inns. Same Love day rent. Passers-by set up time: 2011, December 1 Official online Headquarters: Beijing team background: Rojun, co-founder & CEO, SINA le Habitat 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: Independent Management of vacation apartments, villas home Source: At present, sway hotel apartments for the main pig short rent set up time: August 2012 Headquarters: Beijing team background: Chen Yu Wang Liantao, co-founder of Investment/acquisition: January 6, 2013 announced tens of millions of dollars in last year's four-quarter financing, Investor does 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, pub, 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. Online short-term rental platform manufacturer capability Analysis Photo Source: 2 Typical short-term rental sites overseas: (sorted by set up time) HomeAway established: 2004 Headquarters: Texas State Austin Team background: Brian Sharples,ceo; Carl Shepherd,cdo; Brent Bellm,coo; Tom HALE,CPO; Ross Buhrdorf,cto; Lynn ATCHISON,CFO. Investment and financing/acquisition: November 13, 2006, acquisition of VRBO website; October 2, 2007, acquired Ownersdirect.co.uk;2009 February 4, acquired homelidays.com;2010 March 3, Acquisition of bedandbreakfast.com;2011 April 4, the acquisition of realholidays.com.au;2005 year January, a round of financing, 49 million U.S. dollars, Austin ventures/red dot venture; January 2006, B-round investment of 160 million U.S. dollars, institutional Venture, Trident capital; November 2008, E-round investment 250 million U.S. dollars, Marvell Crossover venturesinstitutional venture/Red dot Venture October 2010, Google Ventures invested 25 million U.S. dollars June 29, 2011, landed on the Nasdaq profit mode: Trading Commission/advertising/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 established: July 2008 Headquarter: San Francisco team background: Nathan Blecharczyk, President and co-founder; Brian Chesky, president and co-founder. Investment and financing/acquisition: June 2, 2011, the acquisition of Germany accoleo;2011 May, a round of financing, 7.2 million U.S. dollars, Sequoia Capital, Greylock, SV Angel Funds, Ashton Kutcher and youniversity VCs, etc., July 2011, 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: Collect 3% of the transaction amount from the landlord;Take a service charge ranging from 6% to 12%. Types of houses: apartments, family houses, hotels and other (castles, treehouse, boats, etc.). Home Source: The main person. Note: All the above information are from the short rental website and media related reports on the future development trend of online short rental Platform forecast market environment: domestic short-term rental market in the next two or three years will still be in the market education stage, with the self-travel ratio and short-term rental mode of awareness further increase in the 2014 short 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.