Airbnb announced on May 24 that it would end its operations in China from July 30. The decision was partly motivated by the numerous confinements introduced by the government. Since the start of the pandemic in 2020, activity has inevitably suffered.
End of rentals in China for Airbnb
The rental giant unveiled the news on the WeChat social network, owned by Tencent. If the company ends its services in China, it specifies that its Chinese users will be able to continue to use it outside the country. Nathan Blecharczyk, co-founder of Airbnb, explains in his message that they ” have made the difficult decision to refocus their China efforts on overseas travel and to suspend their China guesthouses and experiences, effective July 30, 2022 “.
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Airbnb established itself in China in 2016. The Californian company failed to win against super local apps that offer the same services at a lower cost. Added to this is the coronavirus crisis which, since 2020, has paralyzed China’s tourist activities.
The Chinese government maintains a “zero Covid” policy on its territory in order to isolate sources of contamination. According to The echoes, at the end of April, a quarter of the Chinese population would be subject to some form of confinement. The company’s activity has been greatly reduced by the weak tourist presence.
According to New York Times, Airbnb’s listings in China attracted nearly 25 million customers. However, in recent years, stays in the Middle Kingdom only represented 1% of the company’s turnover. By withdrawing from the Chinese market, the company will withdraw only 150,000 rental offers out of the 6 million that make up its global catalog.
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Airbnb is not the first Western company to leave China after failing to establish a foothold there. Many have tried to acclimatize to Chinese censorship to win over a new clientele.
Last October, LinkedIn announced the closure of its social network in China. Targeted by the Chinese authorities, the platform had to “improve” the moderation of its content, going so far as to block certain American journalists in China. The latter were accused by regulators of “posting prohibited content”.
Despite leaving China, Airbnb plans to keep its offices in Beijing open and continue to employ its Chinese staff.