International Trade and Global Business

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The Shared Economy: Accommodation Companies Race to Get a Foot in the Door

March 12, 2019 3:39 PM

The shared economy, powered by amazing software and marketing acumen, continues its march around the world. In trade terms, revenue generated by the service provider counts as an export for the headquarters’ company if derived from a cross-border sale.
 
Airbnb, the U.S. based lodging aggregator, is likely to add more to the US service export surplus by expanding in Asia, a region with excellent growth opportunities. Asia is attractive because as a market with a high per capital savings rate, consumers are starting to spend more in their home markets. Three years ago, Chinese travelers comprised 66% of Airbnb’s guests in China. Last year, the figure was 91%. In India, 78 % of guests last year were Indian travelers, up from 53% in 2015.
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