May 24, 2022 12:30:00

Airbnb is reported to close its business in China, business for Chinese tourists traveling abroad continues

When Airbnb, a private lodging service, will stop providing

accommodation (listing) in China by the summer of 2022, CNBC, an overseas media, reported as a story of two sources. The business in China is expected to be closed, but the outbound business for Chinese tourists traveling abroad will continue.

Airbnb is closing its domestic business in China, sources say
https://www.cnbc.com/2022/05/23/airbnb-is-closing-its-domestic-business-in-china-sources-say.html

Airbnb to shut down domestic operations in China | Engadget
https://www.engadget.com/airbnb-to-shut-down-domestic-operations-in-china-212516568.html

Airbnb officially launched its business in mainland China in 2016, with Airbnb co-founder and chief strategy officer Nathan Brecharck serving as chairman of Airbnb China. However, it seems that the revenue from the business for residents in China is about 1% of the whole platform, and Airbnb has been forced to struggle in the business in China.

The reasons why Airbnb struggled in China are due to the complexity of operations and intensifying competition due to the regulations of the Chinese government. For example, Airbnb had to sign contracts with local governments to do business in China and was required to store customer data on government servers .

It has also been pointed out that in China,severe urban blockades have been implemented to curb the new coronavirus infection (COVID-19), and the inconsistent flow of domestic and foreign travelers also made the business difficult. increase.

Foreign media CNBC reported that 'Airbnb will close its business in China,' according to two sources familiar with the matter. Employees in China will be notified as early as May 24th (Tuesday), and all listings will be withdrawn by the summer.

For Airbnb, Chinese tourists traveling abroad are still a big business opportunity, and the outbound business will continue in the future. Airbnb is reported to maintain its Beijing office in its outbound business and continue to employ hundreds of employees.

Airbnb struggled with announcing that it would dismiss 25% of its employees in May 2020, when the COVID-19 pandemic occurred, but in December of the same year it went public on the US Nasdaq market and then went public . However, the stock price has remained at a level exceeding 68 dollars per share at the time of the initial public offering (about 7700 yen at the rate at that time). In November 2021, sales and net income exceeded those before the pandemic, partly due to an increase in long-term residents due to the introduction of remote work.