Airbnb will reportedly cease operating domestically in China, according to a breaking report from CNBC.
Listings for all the company’s homes and experiences are expected to be taken down this summer.
Airbnb (ABNB) launched in mainland China in 2016, but it was reportedly an expensive and costly country to work in, with a great deal of competition from native businesses. The pandemic also increased the difficulty of operating in the area.
Ultimately, stays in China accounted for only 1% of the company’s total revenue, despite marketing efforts to establish a greater foothold in the area.
Airbnb Will Continue To Have A Presence In China
While Airbnb will no longer provide lodging in China, it will not completely divest itself from the country.
The company will reportedly maintain an office in Beijing with hundreds of employees, and will focus solely on providing listings for Chinese travelers. Apparently, there was little overlap between Airbnb’s outbound and domestic businesses.
Airbnb’s Shares Have Fallen This Year
Airbnb recently announced it was doing away with its policy to allow Covid as a reason to cancel a trip and get a full refund.
Airbnb initially struggled during the pandemic, laying off laying off about 25% of its staff in May 2020.
But eventually it was able to weather the pandemic better than many other companies in the travel industry, as the company’s business model could easily shift to contactless transactions between guests and hosts. The company posted soaring revenue for the final quarter of 2021, raking in a record $834 million.
But like many companies that saw a “pandemic boost,” it’s been seeing a deflation of late, as its share prices have dropped 30% since February.
But while rentals went up last year as people began traveling again, the Chinese market was slow to recover compared to the rest of the world and has been hit with recent covid-related lockdowns in much of the country.
