Xiaozhu

The company's business model is centered on connecting individual property owners with travelers seeking accommodations. Xiaozhu's primary revenue stream is a commission fee, historically around 10%, charged to hosts on each successful booking. This peer-to-peer approach allows for a wide array of lodging options, ranging from city apartments and historic courtyard homes to unique stays like treehouses and campers. The platform targets a diverse client base, including leisure travelers, families, and business travelers looking for more personalized and cost-effective alternatives to traditional hotels.

To address the initial challenges of building trust and supply in a nascent market, Xiaozhu invested heavily in its offline operations. The company developed a comprehensive service system to support both hosts and guests. For property owners, Xiaozhu provides services such as professional photography, housekeeping, and guidance on interior design to make listings more attractive. To enhance security and user trust, the platform has implemented features like a two-way review system, real-name verification for both parties, partnerships with third-party credit systems like Sesame Credit, and property and personal accident insurance. Technologically, the company has integrated smart home devices, including facial recognition smart locks and gas leak detectors, to improve safety and security.