[Travel News]: China’s sharing accommodation suffers 72.1% decline in transaction volume
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The following is the [Travel News]: China’s sharing accommodation suffers 72.1% decline in transaction volume from [ChinaTravelNews] recommended by TheTourAttraction.com:
However, the accommodation rental market has been on a rebound since March.
ChinaTravelNews – The “China Sharing Accommodation Development Report 2020” released on July 21 by the Sharing Economy Research Center of the State Information Center analyzed the development of accommodation sharing in the first half of this year as well as challenges and new trends the industry would face in the ongoing pandemic.
The report shows that in 2019, the transaction volume of the home-sharing market grew 36.4% year-on-year to approximately RMB 22.5 billion (USD 3.21 billion). During the year, 53.8% more people were involved in the market, about 200 million in total. Among them, 6.18 million were hosts, and 190 million were guests, 54.5% and 53.8% more year-on-year respectively. Major accommodation sharing platforms had raised about RMB 150 million (USD 21.4 million) during the year, down by 95.5% year-on-year.
From January to May 2020, the transaction volume of China’s accommodation sharing market decreased 72.1% year on year due to the Covid-19 outbreak, according to the report, due to the implementation of strict quarantine policies and collapsed consumer demand for travel rentals. The report shows that in the first five months of this year, rental bookings fell 65% YoY and the number of guests decreased 63%. Sluggish demand also resulted in a notable decrease of 16% in daily rates compared to the same period last year.
However, the accommodation sharing market has been on a rebound since March, with improving numbers in transaction, bookings and lodgers, according to the report. On a month-on-month basis in March, April and May, transaction volume increased 78%, 199% and 35% respectively; bookings increased 141%, 152% and 50%; and the number of lodgers increased 81%, 112% and 28%.
The report indicates that the long-term prospect for the house-sharing industry is bright, though uncertainties remain in the short term. As the pandemic is under control, China’s macro economy has been on track to a full recovery. With the upgrading of consumer needs, especially an increasing demand for high-quality leisure activities and services, the fundamental factors driving the industry’s boom will not change for the long-term.
However, in the short term, the accommodation sharing market still faces uncertainties related to the economic development of China and the world at large, as well as the pandemic’s ongoing impact on the travel industry.