Home-Sharing Service Transactions in China Set to Top $1.8 Billion This Year
Spike in demand reflects growing consumer interest and gives rise to multiple services
February 28, 2017
| Retail & Ecommerce
Interest in Airbnb-style accommodation-sharing appears to be increasing in parallel with growth in the digital travel market in Asia-Pacific. Digital travel sales in Asia-Pacific are expected to surpass those in North America this year, according to eMarketer projections. China, in particular, is experiencing a rapid rise in such accommodation-sharing, according to research that suggests spending and interest in the sector are growing.

According to a February 2017 report by iResearch Consulting Group, spending on home-sharing services in China is expanding at a rapid clip. The company estimates that home-sharing transactions in China will total RMB12.52 billion ($1.88 billion) this year. This spending will occur on popular accommodation-sharing platforms operating in China, among them Airbnb, Mayi, Xiaozhu and Tujia.
This increase in transaction volume appears to be a direct reflection of increased interest in property-sharing services among consumers in China. A July 2016 survey by iiMedia Research found that space- and property-sharing services were the second most popular category of sharing economy services among internet users in China, behind only ride-sharing.

Why has the sharing economy seen such rapid growth in China, a market where other Western companies and business concepts often face strong headwinds? Some recent research suggests consumers in China view sharing economy companies as a mechanism to promote the common good of society, something they accomplish by promoting the proper allocation of resources.
Still, not everything is working for China’s accommodation-sharing industry. In November 2016, Airbnb announced it would be splitting its operations in China from the rest of its international operations, a decision made to adhere to local business regulations. The popular accommodation-sharing company’s recent challenges, combined with the rising success of homegrown competitors, suggest further market consolidation could be coming in the near future.
—Jeremy Kressmann
New in eMarketer PRO This Week
Not a PRO subscriber? Find out how to become one.