Airbnb to Exit China Lodging Business... Focuses on Outbound Market

[Asia Economy Reporter Kim Hyunjung] Accommodation sharing platform Airbnb plans to cease its local accommodation sharing business in China after six years of operation and focus on Chinese outbound travel business, Bloomberg reported on the 23rd (local time).

The news agency, citing sources familiar with the matter, reported that Airbnb plans to remove accommodation listings in mainland China from its website and halt related business by this summer. However, the company expects Chinese outbound tourism to improve once COVID-19 related restrictions are eased and plans to maintain its office in Beijing.

Although the China business accounts for only 1% of Airbnb's total revenue, the company sees greater opportunities in Chinese travelers' trips to the Asia-Pacific region, the report explained.

Airbnb first entered China in 2016 under the brand name Aibiying (愛彼迎·Aibiying), but after five years of operation, it faced the COVID-19 pandemic and has not been able to operate properly since 2020. Since February 2020, the company has stopped check-ins at Beijing accommodations to comply with local regulations. Additionally, the requirement by the Chinese government to share user information and the emergence of similar competitors leading to price competition also contributed to the business downturn.

In a report, Airbnb expressed concerns that "these factors, combined with the sentiment of the Chinese workforce and China's policies on foreign direct investment, could impact the China business." It also forecasted that "if US-China relations deteriorate over a long period or geopolitical risks in China escalate, the business would be negatively affected."

This content was produced with the assistance of AI translation services.