Airbnb to close its domestic business in China
All mainland Chinese listings will be taken down by this summer, but Airbnb will continue to maintain an office in the country
• All mainland Chinese listings will be taken down by this summer, but Airbnb will continue to maintain an office in the country
• Stays in China have accounted for around 1% of revenue for last few years
Airbnb Inc (NASDAQ: ABNB) is closing down its domestic business in China after facing mounting competition from domestic players and the heavy impact of the COVID-19 pandemic and lockdowns, CNBC reported on Monday, citing two sources familiar with the matter.
The online homestay rental company is planning to tell employees in the country as early as Tuesday morning in Beijing, and the listings will be taken down by this summer, the report said.
Although the business has recovered from pandemic hurdles, the company is seeing a much slower recovery in China, as the country has periodically locked down to fight subsequent waves of infection.
Airbnb formally launched its mainland China business in 2016 and faced a costly house rental market thats complex to operate, sources told CNBC.
Moreover, the overlap between Airbnb’s outbound and domestic businesses was not substantial.
The report said the company would refocus on providing listings for Chinese travelers going abroad.
Airbnb will maintain an office in Beijing with hundreds of employees, according to one source.
Picture Credit: Reuters
ALSO READ:
