SHANGHAI, March 22 U.S. short-term rental giant
Airbnb Inc will triple its China staff this year as it targets
the country's millennial consumers, its chief executive said on
Wednesday, even as the Silicon Valley firm faces competition
from local rivals.
Airbnb co-founder and CEO Brian Chesky said China was a key
market for the firm to achieve its global ambitions. He was
talking at an event in Shanghai to launch the brand's Chinese
name "Aibiying", literally "welcome each other with love".
"Chinese millennials, they are a huge market - nearly half a
billion people, 400 million Chinese millennials and they
represent 80 percent of our business here in China," he said.
"Our idea is to bring people together from every country in
the world and that must start from the biggest country on earth,
right here in China."
The firm, valued at $30 billion in a round of fundraising
last year, has seen strong growth from Chinese tourists, with
outbound travellers from the country staying at its properties
globally growing 142 percent last year, the firm said.
Within China, the government has been ramping up pressure on
foreign tech firms operating in the country, forcing many to
find ways to bring Beijing on-side. Airbnb told Chinese users in
November it would store their personal data locally and
announced a series of agreements with local city authorities
including Shenzhen, Chongqing, Shanghai and Guangzhou.
Beyond regulation, Airbnb is facing a handful of highly
funded local rivals, including Tujia.com and Xiaozhu.com, often
dubbed China's Airbnb clone.
Chesky added the firm had looked closely at the successes
and failures of other companies operating in the country. Many
international firms, especially in tech, have faced hurdles in
China from ride-hailing firm Uber Technologies Inc to
"To get things right in China we've tried to learn from
other companies, what they did right and what they did wrong,"
he said. "The first thing is we've built a local team that is
tripling in size this year."
The firm now has around 80,000 homes listed in China, a
number growing at over 160 percent year-on-year, while its
business is being driven by Chinese millennials, loosely defined
as adults under 35 years old.
Chesky said this group was "moving away from mass tourism"
of their parents and looking for authentic, local experiences:
"(It's) a new generation that is travelling very differently."
(Reporting by Adam Jourdan; Editing by Christopher Cushing)