Two sources are saying that Airbnb is closing its China domestic business. The company is reportedly planning to announce the news to its employees in Beijing.
Airbnb Started Its Presence in Mainland China in 2016
According to the story by CNBC, Airbnb will be announcing that homes and all other experiences will be taken down by the summer. All mainland China listings are expected to be taken down.
The business has launched a presence in mainland China back in 2016. Since then, the company has been faced by mounting competition from other domestic players.
China Accounted for Approximately 1% of Airbnb's Revenue
As per sources, Airbnb's China segment was already dealing with complex and costly operations. The company's struggle was reportedly made worse when the pandemic happened.
Nathan Blecharczyk, cofounder of Airbnb and head of the China effort, says that the country has only accounted to approximately 1% of their revenue. Blecharcqyk was put in charge of in-country branding and taking control of the efforts.
Company to Focus Its Efforts on Chinese Outbound Travelers
Now, sources are saying the company will be focusing its efforts on Chinese outbound travelers instead of travelers that are visiting China. According to one source, "the overlap between Airbonb's outbound and domestic businesses was not strong."
A source says that despite a change in direction for Airbnb's efforts, the company will be keeping its Beijing office which currently has hundreds of employees. The company has had a huge drop since its initial IPO price back in 2020.
Airbnb Shares Fell 30% Since Its $68 IPO Price
As of press time, the company reportedly fell by 30% since its $68 IPO price as per The Motley Fool. This comes at a time when the market is experiencing a much broader tech stock selloff with other large tech companies are also down in value.
During the early days of the pandemic, the company reportedly had to lay off 25% of its staff on May, 2020 according to an article by Forbes. The company still decided to go public during November, 2020 despite having to lay off employees.
Chinese Hosts Used Separate Cleaning Program
Upon its IPO announcement, the company shared details regarding how Chinese hosts have to use a different cleaning program. The separate cleaning program follows a five-step cleaning process which as per Airbnb, helps them ensure that covid transmission is prevented.
The company is also implementing the smae five-step cleaning process around the world as well. As per CNBC, the business has started to recover as more and more individuals begin traveling again.
Read Also: AirBnB Is Cool With Employees Working From Home 'Forever'
Airbnb Saw Increase in Long-Term Rentals Amidst Pandemic
Airbnb has reportedly seen a long-term rental increase due to flexible work arrangements and amidst the pandemic. Chinese businesses, however, have experienced a slower recovery due to periodic lockdowns.
The lockdowns were imposed by China in order to curb the "subsequent wave of infections."
Related Article: Airbnb Updates Features as Company Prepares for Summer Travelers
This article is owned by Tech Times
Written by Urian B.
