Maintain resilience, seize the trend and embrace changes–Siew Kum Hong
2021-03-19
Siew Kum Hong
Airbnb China COO
Q1: As one of the key players in the industry, how would you summarize 2020 in one word? And why?
A: The word that sums up my 2020 would be “resilience”.
The resilience of Airbnb and the tourism industry: COVID-19 and its uncertainty brought the serious test of the resilience and risk resistance of all players across the travel ecosystem. The tourism industry is geographically sensitive, so it took a substantial hit last year. Airbnb, as a technology-empowered and community-driven company, has always focused on using technology to gain insight into users’ travel needs, empower guest and Host communities, and adjust according to the real world situations. Sudden changes can better demonstrate our flexibility and resilience. We believe that the people to people connection and the desire to communicate with each other will not be stopped by the outbreak, and the tourism industry will eventually see the reopening of the world.
The resilience of the Airbnb Host community: We often say that the Hosts are the core of the Airbnb community. During the outbreak, Airbnb Hosts’ flexible and effective strategies also demonstrated their resilience. According to the “Airbnb China Host Community Report 2020” released by Airbnb in early 2021, 2020 is a year when Airbnb Host community bravely fought and grew, with some Airbnb Hosts:
- Identifying new pain points and new needs of travel, such as strengthening the listing safety, launching popular weekly and monthly rentals, and upgrading listings to improve the quality.
- Turning crisis into opportunities, and enriching travelers’ check-in experience by integrating resources and launching “listing +” initiatives, or introducing new customized products, such as new ways of camping combining stays with experiences.
Q2: Looking forward to 2021, how do you think the tourism industry should build its core competitiveness in order to survive?
A: Take 2020 as a lesson: Our CEO Brian Chesky said in an interview last year that the travel we knew is over, and it’s never coming back. “Instead of the world’s population traveling to only a few cities and staying in big tourist districts we are going to see a redistribution of where people travel. They’re going to start traveling because they are going nearby to thousands of local communities.” Therefore, it is very important to seize the trend and embrace changes in a timely manner.
Looking forward to the trends of tourism in 2021:
- Grasp travel insights: In the post-COVID era, we believe that travel has gone beyond tourism itself, and became an integration of life, work and tourism. According to a survey conducted at the end of last year, we saw that 76% of the respondents said they would try to “travel near the city or leave the city to live in the countryside” in the future because of the outbreak. 64% of respondents were considering “working and living remotely at a new place, or traveling on a business trip”. Airbnb will also embrace the emerging trend of lodging and provide travelers with more diverse and high-quality options.
- Help the “Double Cycle” of Chinese economy with home sharing:
In terms of individuals: In July last year, 13 departments, including the National Development and Reform Commission, also put forward the concept of “new individual economy” for the first time, especially advocating the development of micro-economy and encouraging sideline innovation. Becoming Airbnb Hosts is actually a preferred option for people to obtain employment flexibly and to earn more. And such “slashie” Hosts can enjoy a more colorful and flexible life.
In terms of local community: Airbnb’s latest Host community report shows that Airbnb Hosts are becoming “Travel Influencers”, who share with the travelers the most authentic ways to enjoy the destinations. More than 90% of Chinese Hosts interviewed made at least one recommendation to their guests in the last year, and 79% of guests interviewed have visited places recommended by their Hosts. They are also a booster for local communities and economic development, with 91% made recommendations located in the neighborhood of their listing(s), and 90% of the recommended businesses are local businesses.
Since March 2020, new Hosts globally who operate only one listing and have begun to receive guests have generated more than $1 billion (6.45 billion Chinese yuan) in cumulative income, according to data from Airbnb. Female Hosts account for 55% of the total, with a total income of more than $600 million (about 3.88 billion Chinese yuan).According to internal data from Airbnb, women account for 59% of China’s new Hosts, higher than the global average. Young people (aged 18 to 40) are also the main force who joined Airbnb Host community in China during the outbreak. More than 70% of the new Hosts who have joined since March 2020 are millennials and Generation Z. The income of new Hosts in first-tier and new first-tier cities is among the highest, with Beijing, Shanghai, Hangzhou, Chengdu and Shenzhen ranking the top five respectively.
Airbnb will continue to actively empower the Host community with its global connections and technologies, create a sense of “Belong Anywhere” for travelers, create greater social and economic values for the local community, and better promote the recovery and development of the tourism market
Q3: The term ‘New Normal’ is really popular since the COVID-19 outbreak. What does it mean to you?
A: Under the new normal of COVID-19 prevention and control, travel behavior and habits in China have undergone some subtle changes. Cross-border travel is impossible due to the epidemic, and this changes people’s attitude toward traveling from previous years.
In the post-COVID era, we believe that travel has gone beyond tourism itself, but the integration of life, work and tourism. “Domestic travel” becomes the first choice under the “new normal”, and travelers are eager to “live anywhere”. Among them, ‘Escape to the country’, ‘Snowbirds’ and ‘Digital Nomads’ are the top 3 use cases[1].
- Escape to the country: The outdoors and countryside are people’s desired destinations. According to the survey, 76% of respondents would consider “escape to the country” (look for nearby trips to rural areas or leave cities to try out rural living). 50% of respondents say that there are more people considering “escape to the country” after the outbreak and the trend of “escape to the country” will continue in the next year.
- Snowbirds: 71% of the respondents were considering spending the winter in warmer climes.
- Digital Nomads: “Working from home” is becoming working from any home. According to a global survey, the number of full-time remote employees around the world will double in 2021, and the proportion of long-term remote workers will rise from 16% to 34%. In China, a survey shows that 64% of respondents would consider “digital nomads” living (work from any home or combine business trips with leisure trips).
In addition, travelers’ requirements for the listings’ health and safety have also increased. To address travelers’ concerns, Airbnb launched a new category called “Rest Assured Stays” to meet the needs of travelers during the epidemic. According to a survey conducted for Airbnb China[2],cleanliness (97%) is the top concern for prospective travelers looking for listings, and sanitization status ranked the third (84%). More than half (53%) also cared about whether the Host provided disinfectants. To help the local community to recover from the pandemic, we launched this new category, and only listings that are allowed for operation, open to self-service check-in, and have a 4.8 or above cleaning review will have a special tag attached to it, which raises their possibility of getting booked.
[1] A survey of 1000 Chinese adults in November 2020 by Kantar, commissioned by Airbnb China
[2] The data come from an Airbnb China survey for guests who searched on Airbnb platform between February 15 and 27, 2020.
Q4: What are your expectations for 2021? If summed up in one word, what would it be and why?
A: I’d like to use a small phrase to better explain my expectations for 2021: meaningful travel.
On the one hand, the “social distancing” caused by the epidemic also makes people cherish the time they spend with friends, relatives and loved ones. The amenities of shared accommodation can better meet the needs of family tours, parent-child trips and other travel scenarios. Airbnb Hosts’ unique way of hospitality can bring home-like warmth to the guests, and the most sincere communication and warmth between people is a further extension of “Belong Anywhere”, which also vividly embodies the meaning of travel.
On the other hand, the epidemic briefly halted travel around the world, giving travelers, including me, more time to think ‘why do we travel?’. Travel should not be as simple as taking a quick look at local places of interest. My ideal travel is to slow down and live at the destination like the locals for a while, learn more about local customs, and at the same time be a responsible traveler and have more positive interaction with the place. This is what I mean by ‘meaningful travel’.
Q5: What would you like to share with the tourism industry in 2021?
A: Let’s look further along the way. The outbreak is temporary, and the beauty of the world will not be dispelled by it. We should remain curious and keep our faith in exploring the world, and I believe that after the outbreak, we will surely witness a better and more resilient tourism industry.
