Text | New marketing
Outbound travel is quietly heating up.
According to data from the China Tourism Academy, the number of outbound tourists in 2023 will exceed 87 million, and the number of outbound tourists is forecast to be 130 million in 2024. According to the latest data from the Civil Aviation Administration of China, the average daily number of people entering and leaving the country during the Spring Festival holiday this year is as high as 2.249 million, which is comparable to the entry and exit flow during the Spring Festival in 2019.
Ctrip's visa data also shows that from the current number of visa applicants, the number of visa applicants during the "May Day" holiday has increased by more than 3% year-on-year, and the transaction volume has exceeded that of the same period in 2019. Judging from the visa data, the popular outbound travel countries on May Day are: Japan, South Korea, the United States, Australia, the United Kingdom, Vietnam, Canada, New Zealand, etc. Among the visa-free countries, the flight recovery rate of the United Arab Emirates, Qatar, Kazakhstan and other countries exceeded 100%, and the recovery rate of flights to Singapore and Malaysia exceeded 85%.
In terms of accommodation, the demand for foreign hotel and B&B bookings increased significantly during the Spring Festival. According to Fliggy's data, the number of hotel room nights traveling to Malaysia, the United Arab Emirates, Qatar, Egypt and other countries on the platform doubled during the Spring Festival, and the total number of outbound hotel bookings during the Spring Festival hit a three-year high, with a year-on-year increase of more than 310%. In terms of homestays, Airbnb China data shows that during the Spring Festival holiday, the number of outbound travel bookings made by Airbnb Chinese users increased by nearly 8 times year-on-year.
Among the accommodation booking platforms for outbound travel, Booking and Airbnb are the leaders in the field of traditional hotel booking and B&B sharing. Booking is one of the world's largest online hotel booking platforms, offering a wide selection of hotels and convenient booking services, while Airbnb is the world's most well-known homestay sharing platform, allowing ordinary people to rent out their accommodation to tourists, providing a more personalized and unique accommodation experience.
So, with the trend of outbound travel heating up, do Chinese tourists prefer hotels or homestays, and how do these two platforms respond to this trend?
01 Booking: It's losing its price advantage, but it still has a large user base
Xiaohongshu blogger @姽婳 is a travel enthusiast, and this May Day, she plans to travel to the Philippines. When booking a hotel, she carefully compared the prices of multiple apps and found a fact: "Booking is the most expensive app I use, and it often costs a lot!" For example, the Coco Hotel in Siqui Hall, Philippines, costs 960 yuan, Fliggy 998 yuan, Agoda 975.3 yuan, and Booking 1512 yuan, and the same Katatani villa building in Phuket, the price is 2558 yuan, Fliggy 2612 yuan, Agoda 2998.28 yuan, and Booking 3047 yuan.
"I searched at the same time period, and all the comparisons were where to go for the cheapest. Some Agoda listings are cheaper, but there are taxes associated with the payment page, and in the end it's not the cheapest. But what is outrageous is Booking, the high price of smacking, the usual can be discarded. Xiao Wei's feelings are universal. To a certain extent, Booking is losing the price advantage of its overseas home base, and its territory is gradually being carved up by domestic OTAs.
If it doesn't have an advantage in terms of price, is Booking different from domestic OTAs in terms of fulfillment and service?
Some netizens shared their real comparison experience on Xiaohongshu. They pointed out that domestic OTA platforms can generally get in touch and communicate directly with customer service online, and the efficiency of solving problems is relatively fast. In contrast, it is relatively difficult to find customer service on Booking, and there is a language barrier. In addition, using Booking can sometimes lead to fraudulent credit card fraud, which is generally not a concern when using a domestic OTA platform. In addition, compared with domestic OTAs, who can directly submit invoice information online to obtain electronic invoices, the invoicing process on Booking will also be more complicated.
Others shared their experiences as landlords in short-term rental business on Xiaohongshu. They pointed out that Booking can indeed bring a lot of traffic to short-term rentals on the same two platforms, but the various fees charged by the platforms are relatively high, and in addition, the operation interface of the Booking app is complex, and it is unclear how to switch to the business model in the app after publishing a listing on the website, compared to the Airbnb app, which is more simple and intuitive. Other hosts also shared differences in pricing strategies, saying they need to price higher on Booking, as the platform doesn't offer content insurance like Airbnb, which is a part of the cost that needs to be taken into account. Perhaps these are some of the reasons why some listings are priced higher on Booking.
Still, there's no denying that Booking still has a huge user base in China.
Glenn Fogel, the CEO of Booking, has publicly stated that Booking has a strong platform for both traditional hotel rooms and non-standard accommodation. According to official data, Booking currently offers more than 28 million online listings in more than 153,000 destinations in 225 countries and regions around the world, including more than 6.6 million homestays, apartments and other unique accommodations.
The abundance of listings makes it easy for users to browse even if they don't book on Booking. Many users will first browse the destination's accommodation options on Booking, and then switch to domestic OTAs to see if there are better priced options. At the same time, as a world-renowned platform, Booking has a high degree of credibility and provides users with trust guarantees. In addition, Booking's web version has a straightforward interface and a relatively simple operation process, which many users have been using for a long time before the pandemic.
Overall, Booking's abundant accommodation resources, high reputation, and simple operation process are one of the important reasons for attracting users. But to remain competitive in the Chinese market, Booking still needs to do some work. For example, Booking needs to further improve the value performance of its products, adjust its pricing strategy or offer more promotions to attract more users, and optimize the app experience to improve the user's convenience to use, so as to enhance user stickiness. In addition, it is also crucial to localize the iteration of product capabilities, including the use of features such as intelligent translation and voice assistants, and provide more Chinese friendly listings to make it smoother for Chinese users.
02 Airbnb: Attract more young people with a "customized" travel experience
Looking at both listings and host data, Airbnb is currently at an all-time high, with more than 7.7 million active listings and more than 5 million global hosts. According to the latest financial report, in Q4 2023, Airbnb's accommodation and experience bookings reached 99 million, a year-on-year increase of 12%.
This development trend is closely related to the change in user mentality. For Chinese outbound travelers, the choice of accommodation has become a key factor in the travel experience. It is widely believed that choosing the right accommodation is not only for rest, but also to immerse yourself in the local culture of the destination and experience a unique lifestyle. B&B platforms like Airbnb are undoubtedly better able to meet this demand than traditional hotels that offer standardized services and facilities.
In destinations around the world, Airbnb offers listings that are often located in local neighborhoods or historic districts, allowing travelers to better immerse themselves in local life and interact with locals. According to Airbnb's Spring Outbound Travel Trends Report, this spring, searches for treasures around Japan, such as Takamatsu, Hakone, and Mt. Fuji Kawaguchiko, have surged 20 times, and the platform has launched many ryokans and traditional buildings in these areas, allowing travelers to immerse themselves in the atmosphere of traditional Japanese culture, experience the lifestyle of locals, and deepen their understanding and experience of Japanese culture.
In Asia Pacific, Chinese hosts offer listings with specific labels to make Chinese tourists feel at home. @Almond, a travel blogger who has been to Thailand many times, said: "Living in the home of Tingjie, a Chinese host in Bangkok, I feel like I have directly entered the life of a local. When I arrived at the B&B alone late at night, the warm lamp and the warm 'hello' that Sister Ting left for me instantly swept away my fatigue, and her warm and detailed introduction and intimate and authentic strategies took me to easily play in Thonglor, Bangkok, shuttling through restaurants and shops that only locals know, turning a solo adventure into a warm adventure like home. ”
At the same time, Airbnb is actively promoting cross-cultural communication between hosts and guests through a community-driven operating model to help hosts continuously improve their products and services. For example, many foreign hosts did not understand why Chinese like to use hot water kettles at first, but through the communication of the platform, they began to understand and respect this cultural difference, and even took the initiative to provide hot water kettles for Chinese tourists. It is the attention to these details that has allowed Airbnb to gain more competitive advantages in the Chinese market.
Some netizens shared that the Airbnb app has a smooth user experience. Some netizens shared, click on the lower left corner of each listing, there is a landlord's avatar, click on it to view the landlord's personal information, including hobbies, personality, whether there is a dog at home, etc., just like seeing a "landlord's small profile", you can better judge whether you can talk more Ta. In recent years, Airbnb has introduced 430+ new features and service upgrades to help users choose the right place for their needs.
"Value for money" is another common appeal of outbound travelers. In terms of consumption, today's Chinese young people focus on a "province, province, flower", hoping to use the funds for places that are valuable to them, such as watching performances, booking homestays, etc., and pursuing a lifestyle that is more in line with their real needs. And Airbnb makes it easier for users to find unique local experiences.
Xiaohongshu netizen Tiger Boy shared that he only used Airbnb to book rooms in the past, and never explored new features, but he didn't expect to find many local experiences directly on the homepage, such as Porto's options include language learning, handicraft classes, wine tasting, and more. "But I have to make an appointment in advance, I just made an appointment late and didn't catch up. ”
With these rich options, users can plan their trips better and have a clearer idea of where they can spend their money. At the same time, Airbnb is also ensuring that its listings are competitive in terms of price through price controls and preferential policies. In December 2023, the average price of a single-bedroom listing on Airbnb was $114, down 2% from the same period the year before, while the average room rate for hotels was $149 during the same period, up 7% from the same period the year before. And such a price power will undoubtedly win the favor of more young users.
03 In the face of fierce competition in the Chinese market, is it to advance or retreat?
For a long time, foreign OTA platforms have faced fierce competition from local platforms such as Ctrip, Qunar, and Fliggy in China. Especially after the travel downturn in the past few years, foreign OTA platforms are facing a dilemma of "advancing or retreating".
However, when outbound travel began to recover, the two platforms had different attitudes towards the Chinese market.
Prior to 2020, Ma Jia, then President and Global Vice President of Booking, overhauled the reform of its business unit in China, and continued to roll out various marketing initiatives, including the launch of a loyalty program in China and the sharing of hotel inventory with Ctrip. But since Ma Jia stepped down in 2020, Booking's marketing efforts in China have been shrinking. Perhaps, it is not that Booking does not pay enough attention to the Chinese market, but in the face of the increasingly mature domestic OTA platforms, the cost of Booking to "go head-to-head" with them is too high, and the group also needs to explore a "more cost-effective" development path.
Looking at the social media accounts of the two platforms, it can be seen that Booking's official Xiaohongshu account has been suspended since 2020, and the last update time of WeChat official account and Weibo is also mysteriously stuck at the end of 2023.
Airbnb has been posting high-quality content and advertising on mainstream social media platforms such as Xiaohongshu, Douyin, Weibo, WeChat (including official accounts and video accounts), and Bilibili to attract users' attention, including destination introductions, listing experiences, travel stories, etc., and Airbnb continues to cooperate with bloggers in the corresponding interest circles, inviting them to experience Airbnb's global listings and local gameplay, and expanding the brand influence through their influence and content sharing.
It can be seen that although Airbnb has closed its business related to domestic travel listings in China, it has remained open to outbound tourists and has increased its localization marketing efforts in the Chinese market. In addition to enhancing user communication from the demand side, Airbnb continues to introduce Chinese tourists to various high-quality listings and "Airbnb exclusives" in Chinese.
For example, in 2023, during the release of the movie "Barbie", Airbnb launched the listing of Barbie's "Dream House" and promoted it on the Chinese network, synchronizing with the popular symbols in the movie, inviting users to experience Barbie's dream world in person.
As Airbnb expands new listings around the world, Airbnb will also send out invitations to Chinese tourists as soon as possible. In April this year, MUJI Toshima B&B, an "ancient folk house" with both Japanese aesthetics and artistic imagination, launched on Airbnb, which is also the second MUJI BASE B&B project to be launched on Airbnb after Muji Kamogawa B&B, and Airbnb also issued free accommodation opportunities to lucky Chinese users. It is reported that in the future, Airbnb will continue to promote comprehensive cooperation with MUJI to restore and renovate vacant houses and traditional Japanese buildings "Kominka", so as to continue to provide new and diverse accommodation options for travelers from all over the world, and at the same time inject fresh vitality into the local community.
From these strategies, it can be seen that Airbnb continues to pay attention to user needs and experience in the Chinese market, and constantly polishes its products, services, and marketing strategies to provide high-quality experiences that are more in line with users' expectations. This in-depth localization strategy will undoubtedly help Airbnb establish a good brand image in the Chinese market and gain more users.
04 Conclusion
Behind the booming outbound travel market, we can see the enthusiasm and demand of Chinese tourists for global tourist destinations. In the face of such a trend, the travel industry needs to change and innovate quickly, and Booking and Airbnb, as leading accommodation booking platforms, play an important role in this trend. Platforms need to think deeply about how to break through innovation and create differentiated experiences, including how to continuously pursue technological innovation, how to expand partnerships to provide richer services, how to optimize pricing strategies to provide more competitive options, and how to enhance personalized services to meet the diverse needs of users, etc. As the outbound travel market continues to heat up, the competition between platforms will become more and more fierce, and only by continuous evolution and improvement can we remain invincible in the fierce market competition.