Airbnb exits China as Beijing’s tough Covid-19 containment measures add to woes of ill-suited business model, fierce local competition
- Company to serve the Chinese market by providing options for accommodation when Chinese people travel abroad
- ‘Received barely one order via the Airbnb platform last year’, says Shanghai host who found that US firm’s business model did not work for her
The company, which has faced fierce local competition, said it will concentrate on serving the Chinese market by providing options for accommodation when Chinese people travel out of the country.
“In the face of the challenges of the epidemic, we reconsidered and made this difficult decision: Airbnb China will strengthen its base and focus on the outbound travel business, that is, from July 30, 2022, it will suspend support for domestic travel listings and experiences and related reservations,” Nathan Blecharczyk, Airbnb co-founder and chief strategy officer, said in the note.
“We cherish the Chinese market very much, and always believe that Chinese users, who account for one-fifth of the world’s total population, are an indispensable part of our global network and even the realisation of the company’s vision, creating cultural exchanges and emotional connections between people,” he added.
The move is being viewed as the culmination of an ill-suited business model, local competition and Beijing’s insistence on its zero-Covid policy, which has kept the country’s borders shut to international tourists and hampered local tourism with routine lockdowns.
