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Jul 24, 2020 07:07 pm ·

Beike Publicly Submits Prospectus to the SEC

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Jul 8, 2020 01:12 pm · PR Newswire

China's Answer to WeWork Ucommune to Go Public

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Mar 2, 2019 10:30 pm ·

Tujia Is Expected to Be Under Deficit in 2019

Tujia Group (途家)’s new CEO YANG Changle (杨昌乐) said that Tujia will remain running under deficit this year, reported by Huxiu.com. YANG pointed out that Tujia’s offline business and online business was separated completely and with different cost accounting and HR system, even different culture, and management ways. The companies share part of their investors but were completely individualized. Sweetome Service Apartment, a well-known chain in accommodation industry also former Tujia’s offline business, is now one of Tujia’s important suppliers. Tujia set apart the two parts in 2017. ADR (Average Daily Rate), basically the price people are willing to pay per night for the room provided, is CNY 400 (USD 59), a high number, according to YANG. Nathan Blecharczyk, co-founder of Airbnb has indicated that when Chinese travelers go abroad, they pay going international rates, which is more on the order of USD 90, USD 100 a night. Domestic travel is at a much lower ADR (about USD 40), in an interview. YANG said Tujia can have a higher ADR growth rate than the GMV (Gross Merchandise Volume) for a higher percentage of cheaper orders. Tujia has always been in the red but the group has seen its gross profit grew in past years. Commission fee after subsidy charged by Tujia was minus 1.4% in 2016 and the number grew to 5% in 2017. Tujia will be still running under deficit in 2019, however, with a third-quarter less loss than 2018. The group will earn some money in finance and HR. Tujia plans to earn a net profit in one quarter or one month, at least. Airbnb has been struggling to find a suitable person to be chairman for this worth-invested region once in China, but the things are getting settling down since Nathan Blecharczyk was appointed as chairman of Airbnb China in Oct 2017 (see more in the article). It’s time for Tujia, Xiaozhu.com (小猪短租), and Airbnb China to submit their transcript in 2019, especially Airbnb sets to go public this year. China’s burgeoning home-sharing market is growing and some new trend is emerging as well this year. High-quality listing growing is slowing down in China’s tier 1 cities due to high penetration rate and players need to find new growth potentiality in tier 2 and tier 3 cities. Xiaozhu saw many Tier 3 and Tier 4 cities are listed in the most popular fifty cities including Leshan, Liangshan, Zhangjiajie, which are well-known sightseeing locations in China, according to the company’s 2018 big data report. YANG has become the group’s CEO on Tuesday and once served as COO of Tujia since October 2016 and Tujia announced that it has entered into a strategic agreement with Ctrip, one of Tujia’s main backers at that time (see more in the article).

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Mar 1, 2019 11:32 am ·

Tujia Appoints YANG Changle As the New CEO

Feb 26, 2019, Tujia Group (途家集团) has appointed YANG Changle (杨昌乐) as the group's CEO. The former CEO LUO Jun (罗军) will resign but remain a board member, reported by TMT Post. YANG joined one of Tujia's main backers Ctrip (携程) in 2010 and served as senior manager and senior VP of Qunar.com (去哪儿), which has been acquired by Ctrip in October 2015. Both Ctrip and Qunar are Chinese online travel services providers. It is noticeable that the tech giant Baidu holds a sizable stake in Ctrip. YANG served as COO of Tujia since October 2016 and Tujia announced that it has entered into a strategic agreement with Ctrip and Qunar to merge vocation home rental businesses of the companies at the same time. Tujia received a wide range of benefits from Ctrip and Qunar, including inventory, traffic, branding and operations support. Chinese Online Travel Agency (OTA) Elong (艺龙), a subsidiary of Ctrip, also connect ed its inventory with Tujia. Tujia’s transaction volume increased five times in 2017 compared to 2016, and another three times in 2018.  Tujia’s then CEO LUO has been in charge of its offline brand Sweetome Service Apartment and then COO YANG led its online department since Tujia set apart its offline and online services in 2017. Tujia has been focusing on the fusion of the various online brands, unify the management of inventory to improve the whole industrial chain and completing the ecosystem and industry chain. At the end of June 2016, Tujia had fully acquired short-term rental website Mayi.com (蚂蚁短租). Jan 2018, Tujia fully acquired and combined Fishtrip (大鱼自助游)’s team into its overseas business division, which underscored the group’s taking the lead in short-term rental mergers and acquisitions in China. The group has never hidden its ambition in expansion. “Motivation of our latest deal is very simple: to expand our scale and to acquire more users and bookings,” said LUO in an interview with ChinaTravelNews in 2016. Tujia’s total listings reached one million (300,000 Fishtrip listings included) after this mergers. Tujia announced overseas expansion one of its priorities in 2018 and will focus on Chinese tourist needs mainly when expanding overseas. Tujia’s overseas markets are mostly in Southeast Asia and the group has set up offices in Japan, Singapore, South Korea, and Taiwan. Tujia Group comprises Ctrip apartment, Qunar apartment, Tujia.com, Mayi.com, and Fishtrip. Tujia also has extended its online products with highly differentiated offerings in short-term rental, long-term rental, villas, and homestays.  

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Feb 9, 2019 06:49 pm ·

A Scorecard Breaking Down Everyone from Xiaozhu, Tujia to Airbnb

Airbnb, the innovator of home-sharing, is about to go public in 2019 and it was profitable for a second consecutive year on an adjusted basis. The company expects to hit 500 million guest arrivals by the end of Q1, up 100 million since September. The company was reportedly valued at USD 31 billion during its last round of funding in March 2017. Airbnb seems unsurpassable, but the story is different in China. We’ve talked about its journey in China and here is a scoreboard for everyone in China’s home-sharing market, from Xiaozhu, Tujia to Airbnb China or Aibiying. Euromonitor data shows Airbnb held only 8.7% of the China market in 2017, compared to 41% for Tujia and 23% for Xiaozhu. Listings echoed the readings, Tujia has 1 million listings as of August 2018, Xiaozhu and Airbnb have about half a million, 175,000, respectively. Business Models at A Glance Founded in 2011, Tujia has always been mentioned as China’s Airbnb, which connects property owners with travelers looking for alternatives to hotels. Tujia, however, started from renting out vacation properties that were essentially mini-hotels, fully run by Tujia staff. The company often buys on vacant units in apartment building, hotels and other inventories, and provides services from property management and inspections of listings to cleanups after guests leave. Tujia is more like a B2C business other than C2C, operating in a heavy-asset model and reducing vacancy rate for China’s real estate developer. Sometimes it’s not that cool or unique compared to hotels even it is moving on to be a C2C platform after the company completed its series D round of funding in 2015. Under such business model, the company can cope with a general lack of trust among Chinese consumers. The company doesn’t expect to break even until the end of 2019 but once said it could pursue an IPO as soon as 2019. Tujia has close connections with government officials and people working with police departments, local and federal governments. Xiaozhu.com aims at down-market, offering much lower price point than that of Airbnb and Tujia. Airbnb targets at high-end accommodations, emphasizing quality over quantity. According to Nathan Blecharczyk, chairman of Airbnb China, they want to make sure the quality of the product in China is of equal quality to that globally. To fit in China, the company introduced Alipay, Zhima Credit and Wechat on its platform (see more in this article). It is common for Tujia and Xiaozhu expanded into value-added services to drive profits and beat the competition, Airbnb, however, emphasizes more on landlords training and government relationships, which is partly a lesson from its overseas experiences. In the third quarter of 2018, the number of guest arrivals of Airbnb China increased by 91% in Beijing. Backers and Advantages Tujia raised USD 300 million in October 2017 and is backed by the Chinese largest travel operator Ctrip.com International. At the time it claimed to have about 650,000 listing on its platform. In 2018, the number grew to one million. Tujia acquired Mayi.com, a smaller rival compared to Xiaozhu in 2016, and the homestay businesses of both Ctrip and Qunar in 2017. The company also has forayed into the overseas market like Japan. This series of movements are huge investments. Xiaozhu received USD 300 million in series F round of funding led by Advantech Captial and Alibaba’s Yunfeng Captial. The company is working on AI devices with Alibaba, one of its backer (see more in this article). Its latest big data report shows a sinking trend for many Tier 3 and Tier 4 cities are listed in the most popular fifty cities including Leshan, Liangshan, Zhangjiajie, which are well-known sightseeing locations in China (see more in this article). Airbnb China’s advantage lies on overseas even the company spend the most investment in China than any other districts it operating. Airbnb has 5 million listings worldwide, and it is an overwhelming number that beats all the contenders. The company chose slow and steadiness, aiming to be an outbound travel solution provide for Chinese consumers. The mission of Airbnb China is more like connections, not scale and expansion by burning money and beating competitors, instead. "I actually think our success domestically is a little bit of a race to educate the market and build the relationships that will hopefully blossom into an outbound travel," said Nathan Blecharczyk in an interview with GGV Capital in April 2018, one of its backer.

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Announcements
Jan 29, 2019 03:22 pm · Tujia

Tujia Yang Changle: 2019 transaction volume will achieve 100% growth

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