Airbnb’s competitors in China offer low handling fees and low accommodation fees, coupled with China’s main zero-clearing policy, millions of people are in isolation, thus deteriorating operations.
According to multiple media reports, Airbnb, an online short-term rental and travel company, will officially shut down its local business in China. Among them: Airbnb (Chinese translation: Airbnb) will completely offline nearly 150,000 listings and experience businesses in China, and only keep outbound business, which is expected to be completed this summer.
As for the analysis of the main reasons for withdrawing from the Chinese business, Airbnb’s competitors in China have offered a price advantage of low handling fees and low accommodation fees, coupled with China’s main zero-clearing policy, millions of people are in isolation, thus deteriorating operations.
Although the local business in China is completely closed, Airbnb has not completely “broken off”, but will continue to maintain a large team in China. In fact, outbound travel orders from China are still a business that Airbnb is very concerned about, which is why the company will still retain teams locally to serve these consumers.
Airbnb has a bumpy road in China
For a long time, Airbnb’s China business was a well-liked but not well-received existence, and was criticized for being “unacceptable.” As for the growth of listings in China that Airbnb considers, it is also facing fierce competition in the online short-term rental industry: “Many listings are registered on many platforms at the same time, not only on Airbnb.”
Seeing the news that Airbnb will shut down its local business in China, many people are not surprised. After all, the Chinese business now only accounts for about 1% of its revenue, and even before the epidemic, it was only 5%. With U.S. stocks plummeting for several consecutive days and major technology companies’ spending tending to be conservative, this may be Airbnb’s helpless move.
In a letter to users in China, Airbnb pointed out that starting from 11:00 a.m. on May 24, 2022, users will not be able to book check-in/participation experiences on the platform in China where the date is on or after July 29, 2022 Listings, and experiences in China after July 30, 2022 (inclusive); from 0:00 on July 30, 2022, all services related to listings and experiences in China will be suspended.
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