Airbnb shuts down business in China

Airbnb shuts down business in China

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The home-sharing company made a decision on business declines in the world’s second-largest economy and the worsening of “costly and complex” operating constraints due to the impact of Covid-19, the official told CNN on Monday.

from this summer, Airbnb Stop providing domestic listings and hosting experiences.

According to the source, Airbnb (ABNB) will not completely cease operations in China. The company will continue to maintain an office in Beijing with hundreds of employees focused on outbound travelers and global projects.

Dozens of mainland China cities have been shut down in recent weeks as authorities work to eradicate the coronavirus.

Impact of China's lockdown on global businesses
This approach took a toll on the economy and disrupted nearly every major line of business, from Big Tech to consumer goods. foreign brands, apologize (AAPL) to estee lauder (el)We have warned of the financial impact of the restrictions.

Airbnb was launched in China in 2016. As in any other industry, outbound travel by Chinese customers (mostly to other destinations in Asia Pacific) was a significant opportunity for the company.

China has historically been biggest market Outbound tourism is the world’s largest spender of visitors. World Tourism Organization.

However, since the pandemic, China has seen a sharp drop in traffic and most international travelers have also been blocked.

Sources said they expected a rebound in foreign tourists from China once China fully opens its borders.

Meanwhile, Airbnb’s domestic business, which has accommodated about 25 million guests since 2016, has only accounted for 1% of the company’s revenue over the past few years, the official added.

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