(Yicai Global) March 30 -- Short-terms rental platform Airbnb is making prepayments for its landlords in China to improve cash flow for those struck by the Covid-19 pandemic.
The move is one of several measures aimed at retaining its Chinese accounts, Airbnb China President Peng Tao said during an online press briefing on March 27. Landlords usually receive payment one working day after a tenant moves in, but Airbnb will pay half of the amount due in advance, he added.
China is a growing market for Airbnb, which contributed USD3.6 billion to the local economy last year, the firm said on March 27. That was up 61 percent from 2018.
Under the new scheme, if a tenant reserves a home for June 20 to June 22, 2020, on April 15, the landlord will receive 50 percent of the total amount due on April 18. Usually, the landlord would take full payment on June 21.
Some 99 percent of landlords surveyed by Airbnb are optimistic or neutral about renting after Covid-19, according to the company's landlord confidence index, and 72 percent of these plan to maintain their current business scale or expand.
Editor: James Boynton