Shared accommodation providers get helping hand from platforms

Since the outbreak of the novel coronavirus, online shared accommodation booking platforms have invested a large sum of money and launched a string of measures to help landlords with financial losses due to canceled reservations and related fees, as well as assist them in training and house listing upgrades.

United States-based home-sharing service provider Airbnb China announced an investment of $10 million to support Chinese hosts during the local tourism industry's recovery period in the coming years. The company has set up a special work group to monitor the situation and prioritize the safety of its community of hosts, guests and employees.

In accordance with guidance and recommendations from the World Health Organization, the Chinese government and local authorities, Airbnb has activated its extenuating circumstances policy to offer affected hosts and guests the option of canceling reservations without penalty.

"In such a challenging moment, we stand firmly with our hosts, guests, partners and employees," said Peng Tao, president of Airbnb China. "We have also mapped out key initiatives to support our community and are committed to harnessing the positive power of travel and people-to-people connections to help boost the tourism sector and overcome the negative aftermath of this health emergency."

Investments and action plans are being designed to help hosts with financial losses due to canceled reservations and rental fees, create a reward program for hosts that have actively supported the community during the epidemic and implement programs to train hosts and upgrade their house listings.

Airbnb is also matching its global employees' donations to organizations fighting the epidemic and will also be offering travel coupons to health workers who have stood out in battling the novel coronavirus.

Moreover, the company has launched a new set of courses for hosts that provide knowledge about housing management under current circumstances, redesigning homestays, innovative operational methods, communication skills with guests, and best practices in disinfection and epidemic prevention and control.

Peng said Airbnb is fully aware of the impact of the public health emergency on the short-term vacation accommodation industry－especially the challenges placed on hosts－so they expect to help them positively cope with the epidemic and rebuild their confidence through launching a series of courses.

He added that the travel industry won't recover until two or three months after the epidemic is alleviated, adding that the short-term rental and homestay service industry has been hard hit, with 74 percent of respondents to a survey by consulting firm Kantar having canceled travel-related spending plans.

"Market demand still exists, but has been postponed," Peng said.

According to the State Council Information Center, the market for home-sharing services is expanding rapidly in the country, with the sector's revenue expected to reach 50 billion yuan ($7.1 billion) in 2020. It forecast that in 2020, the number of tenants is likely to exceed 100 million and the number of shared homes will exceed 6 million.

Tujia.com has provided 200,000 yuan in epidemic-related insurance for hosts on its platform free of charge through cooperation with Ping An Insurance Group. It also grants membership identity and more rights for hosts who have reduced or waived guest rental fees during the epidemic period. The measure is aimed at protecting the rights of landlords and their family members.

Tujia said landlords have already become an inseparable part of the platform, while noting that prevention and control of the epidemic is still at a critical stage.

Han Mengying, an analyst at market consultancy Analysys, said the popularity and market share of online shared accommodation booking platforms are less than hotels, and its nonstandardized and community-based services－which are advantages in normal times－h(huán)ave become fatal weaknesses due to the epidemic.

"The supportive measures for landlords are very necessary to maintain the stability of supply, and also a key step to restore market confidence. In particular, Airbnb's special fund is a more favorable and practical guarantee than other policies, as the operators of short-term home rental and homestay services are facing insufficient cash flow," Han said.