5Y News | Fliggy Makes Strategic Investment in Xiaozhu, Xiaozhu's Full Inventory to Be Integrated into Fliggy's Vacation Rental Channel
The homestay industry enters a "new decade."
On September 22, Fliggy announced a strategic investment in Xiaozhu. The two companies will also enter into a deep strategic partnership to explore more robust solutions for the long-term, sustainable development of the homestay industry and to enrich accommodation options for travelers. The investment amount and Fliggy's equity stake were not disclosed.
In an employee letter issued that day, Xiaozhu founder and CEO Wang Liantao stated: "The homestay industry as a whole has entered a new phase of quality improvement and high-quality development, and the comprehensive implementation of the rural revitalization strategy has brought historic opportunities for rural homestays. Going forward, Xiaozhu will leverage Fliggy's strategic resources, making full use of the platform's young consumer base, digital marketing, and operational systems to deepen our presence in the homestay industry. Together with Fliggy, we will generate more sustainable business growth for the sector."
"After more than a decade of development, the homestay industry has reached an entirely new level," said Zhuang Hai, general manager of Fliggy's homestay business unit. "The implementation of the national rural revitalization strategy, combined with younger consumers' demand for personalized, high-quality vacations, has injected broad growth potential into homestays. Fliggy's investment in Xiaozhu is rooted in our long-term confidence in the strategic value of homestays and our high regard for Xiaozhu's professional capabilities and industry influence. A simple homestay transaction platform can no longer meet the dual demands of consumers and the industry today. Through our future collaboration, we hope to redefine what a homestay platform can be, connect with more partners, and deliver value across the entire homestay industry chain to better serve both consumers and practitioners."
Xiaozhu's entire supply of properties will be integrated into Fliggy's homestay and short-term rental channel. Users of both Fliggy and Xiaozhu will gain access to a more diverse range of homestay products. According to official data released by Xiaozhu, as of June 2021, its listings covered more than 710 cities and destinations globally, with over 800,000 total properties, including 300,000 rural homestays.
Additionally, Fliggy and Xiaozhu will undertake deep integration of homestay supply chains, helping operators address pain points in brand marketing, customer acquisition, and profitability, while advancing the industry's branding, platformization, and digitization.
Following a decade of explosive growth and market consolidation, homestays are entering a new phase of in-depth development. Beyond刚需型观光旅游 [basic sightseeing tourism], experience-driven leisure travel is increasingly becoming mainstream. Homestays, with their emphasis on differentiated experiences and unique local culture, have thus entered a springtime of demand — particularly in local and short-haul travel scenarios, where quality homestays are destinations in their own right. Over the past two years, the pandemic has rapidly increased the proportion of short-distance travel, and homestays' appeal to consumers has continued to rise.
At the same time, the comprehensive rollout of the rural revitalization strategy has injected powerful momentum into the quality improvement of rural tourism, creating new development opportunities for rural homestays. In recent years, high-quality rural homestays have emerged in clusters in regions such as Jiangsu-Zhejiang and Sichuan-Chongqing, with some areas gradually showing agglomeration effects. Even as the tourism industry suffered heavy pandemic-related losses, rural homestays maintained rapid growth. According to the 2020 Annual Homestay Industry Research Report published by the China Tourism and Homestay Development Association, China's rural homestay listings surged 90% in 2020 compared to 2019, significantly driving overall market expansion.
With maturation on both the demand and supply sides, combined with supportive policies and industry standards, Fliggy's strategic investment and deep cooperation with Xiaozhu will undoubtedly help both parties seize first-mover advantage in homestays' next decade.
Image: Qinling Feiniaoji · Kongshan Jiutie
Fliggy has the youngest user base among comprehensive online travel platforms in the industry, with post-90s users accounting for over 60%. From destination IPs like Antarctica, the Arctic, Yunnan, and Northwest China to innovative services such as hotel "credit stay," online visa applications, and membership systems, expanding personalized, experience-driven travel products and services has long been a core development strategy. Deepening its homestay footprint will help Fliggy further meet the diverse consumption needs of young users.
In April 2018, Xiaozhu and Fliggy established a strategic partnership, with Xiaozhu's listings officially joining Fliggy's homestay and short-term rental channel. Leveraging Fliggy's "credit stay" system, the companies gradually rolled out "stay first, pay later" services for users. Since then, their collaboration has deepened continuously across content marketing, brand marketing, and product innovation.
In April this year, Xiaozhu and Fliggy jointly launched the "100+ Lodging" brand growth initiative, providing marketing support, subsidies, traffic prioritization, and operational tools to quality homestays lacking brand recognition — helping more small, distinctive properties build their brands among young travelers. During a July summer promotion, Xiaozhu's Fliggy flagship store livestream generated 4.32 million yuan in sales within 30 minutes.
Ahead of the National Day Golden Week, Fliggy and Xiaozhu have launched a "Homestay Festival" campaign themed "Discover Homestays Worth Staying At," featuring over 100 distinctive rural homestay packages across popular destinations including Jiangsu-Zhejiang-Shanghai, Sichuan-Chongqing, and Hainan.
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