Daily Management Review

Glimpse Of A Rebound In China Offered By Airbnb Booking Data


There was an astounding 200 per cent jump in the number of domestic bookings in China for the first half of April compared to the same period in the previous month of March, according to data released by the home sharing startup Airbnb Inc, even as global travelling and even travelling within a country have been suspended in many countries because of stay at home orders and lockdowns imposed in order to prevent the spread of the novel coronavirus pandemic which has hit the travel and tourism industry particularly hard. .
According to data from separate analytics firm called AirDNA, there was an almost 80 per cent growth in the number of bookings for the week of April 13 compared to the week of March 16 in 10 big Chinese cities which included Shanghai and Guangzhou. The March 16 week was described as the bottom for that market by AirDNA Chief Executive Scott Shatford. Despite that phenomenal growth, it was about half of the number of bookings that was reported in the week of January 6. Bookings from international travelers staying in China were also included in the data displayed by the company, Shatford said.
Since April, the daily average rate in China is not very different to what it was in 2019, showed AirDNA data. No discounts are offered by owners of property listed on Airbnb in the manner it is resorted to by hotels to lure travelers, Shatford said.
For Airbnb, China is an important market and the company as well as other players in the travel and tourism industry all over the world are closely watching the market as it slowly recovers from the coronavirus outbreak and kits growth will is being viewed as an indicator about how other countries that are currently in lockdown because of the pandemic would could possibly open up after ending of lockdowns.
Earlier this month, credit of $2 billion in two different deals was secured by Airbnb. Oineof the deals included warrants that can be exercised at a price that would equate with an $18 billion valuation which was well below the $31 billion valuation seen in Airbnb's 2017 Series F fundraising round.
“After we're given the 'all clear' and you're ready to venture out of your home and into other cities, where are you going to want to stay?" said Paul Maguire, managing partner at Iron Edge VC, whose fund owns Airbnb and is looking to buy more on the secondary market. "You'd be more likely to opt for a short-term house rental than checking into a big Marriott filled with hundreds of strangers.”