Airbnb to close domestic operations in China
Airbnb is closing its mainland China operations this summer due to rising costs and domestic competition, reported CNBC. The online vacation rental platform launched its first operations in China in 2016, boosted by enthusiasm Chinese tourists who use it frequently when traveling abroad. But according to sources who spoke to CNBC, Airbnb’s China segment has become too complex and expensive to operate, especially in light of the pandemic. Similar to what happened with Uber in China, a host of local competitors made it difficult for American society to gain an advantage. Stays in China accounted for just one percent of the platform’s revenue in recent years.
As a growing number of cities have banned or passed restrictive short-term rental laws, Airbnb’s fallout in China was due to entrenched competition and regulatory issues. Airbnb China operated differently from other Airbnb operations in other countries due to constraints imposed by the Chinese government. The company was forced to sign agreements with local municipal governments and shop his Data on government servers.
Another more recent obstacle for Airbnb was an irregular flow of international and domestic visitors due to the pandemic, given China’s extensive travel restrictions. While global tourism is recovering, the number of international tourist arrivals has still not returned to pre-pandemic levels according to figures from the United Nations World Tourism Organization. The Chinese government has also limit “unnecessary travel” for its citizens in light of a recent surge in COVID-19 numbers, reducing the number of potential domestic users for Airbnb.