Airbnb is set to leave China amid COVID-19 Lockdown Pains: Report
Airbnb is set to leave China amid COVID-19 Lockdown Pains: Report

Airbnb is set to leave China amid COVID-19 Lockdown Pains: Report

  • CNBC spoke with sources familiar with the matter, who said Airbnb is withdrawing its ads in China.
  • According to CNBC, Airbnb plans to maintain its Beijing office but will not operate local listings.
  • The decision comes amid a protracted shutdown in Shanghai over China’s Covid zero policy.

Airbnb closes its domestic business in China amid the country’s harsh COVID-19 restrictions, CNBC reported Tuesday, citing unnamed sources familiar with the matter.

According to CNBC sources, Airbnb plans to remove all of its ads on mainland China this summer. One of the sources added that Airbnb plans to keep its office in Beijing, which employs hundreds of employees.

The insider also spoke to a source familiar with the matter, who confirmed that Airbnb pulled the plug on home ads at home and turned to focus on its outbound travel business.

Insider source added that since Airbnb set up its China business in 2016, nearly 25 million guests have booked stays in the country through the company.

However, Airbnb stays in China have only accounted for 1% of the company’s revenue over the past few years, according to the source, which highlighted how China has “been closed since the beginning of 2020, with no end in sight.”

The source told Insider that the Chinese domestic market has been challenging for Airbnb to gain a foothold in, in part because of the intense competition the company faced in the country’s domestic short-term rental rental market. This was exacerbated by the COVID-19 pandemic, the source added.

The company’s decision to withdraw its listings from the Chinese market comes amid harsh COVID-19 restrictions imposed by China, which have been adheres to its Covid-zero policy.

Portions of Shanghai stay under a hard lockdown which has stretched almost two months. While Shanghai struggles with its many lockdown pain – ranging from widespread food shortages to public unrest Beijing, China’s capital, is that too preparation for a potential lockdown.

Airbnb underwent a round of staff cuts in May 2020 amid worldwide pandemic restrictions and a sharp drop in travel. With Airbnb laid off about 25% of the company – or almost 1,900 employees.

The company has seen significant growth in its business this year.

Wall Street Journal reported that Airbnb’s revenue increased by 70% in the first quarter of 2021. The company also told The Wall Street Journal that it expected revenue in the second quarter of 2021 to fall between $ 2.03 billion and $ 2.13 billion, in the middle of an increase in the demand for summer rentals.

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