The business made the news in a message that was published on its official WeChat account and was directed to the company’s Chinese users. The statement did not include any other information on the reasoning for the company’s decision. The firm, which is headquartered in San Francisco, said that Chinese customers will still be able to book items and experiences located in other countries.
Airbnb Inc. made the announcement on Tuesday that starting July 30, it would stop all listings and experiences in mainland China. With this move, Airbnb joins a growing number of Western online companies that have decided to avoid competing in the China market.
The business made the news in a message that was published on its official WeChat account and was directed to the company’s Chinese users. The statement did not include any other information on the reasoning for the company’s decision. The firm, which is headquartered in San Francisco, said that Chinese customers will still be able to book items and experiences located in other countries.
Nathan Blecharczyk, one of the co-founders of Airbnb, wrote in a letter that the company had come to the “difficult decision” to refocus its efforts in China on outbound travel and to suspend its homes and experiences of hosts in China beginning on July 30, 2022. “We apologize for any inconvenience this may cause,” Blecharczyk said.
By doing so, Airbnb is following in the footsteps of a long line of Western online companies like LinkedIn and Yahoo that have withdrawn from China. This is a symptom that the internet is decoupling the economy of the world’s second-largest economy and most of the rest of the globe.
Nearly all of the major Western internet platforms, including Alphabet Inc.’s Google and Meta Platforms Inc.’s Facebook, have ceased providing services to end users in mainland China, citing reasons that range from censorship to operational difficulties in the country. Among the platforms that have stopped providing services to end users in mainland China are:
Blecharczyk said that it was a tough choice to make, but he was happy of the accomplishments that Airbnb has made in China. He added, “The choice was not easy for us, and I know that it is even more tough for you.” “I know that it is much more difficult for you.” Together, we have established and fostered the growth of a healthy host community in China, and since 2016, we have greeted more than 25 million guests as they arrived.
According to a story by The New York Times, as part of its withdrawal from China, Airbnb plans to delete around 150,000 listings out of the six million it now has there. According to the reports, Airbnb’s revenue from stays in China has contributed for around 1 percent of the company’s total revenue over the last several years.
Airbnb, which was established in 2008, did not begin offering its services in mainland China until 2015. It has integrated its services with Chinese platforms like as WeChat, which is owned by Tencent Holdings, as part of its attempts to localize its offerings. Tujia and Xiaozhu are its primary competitors in the Chinese market.
During Monday’s trading on Nasdaq, shares of Airbnb increased by 0.65 percent; however, the same shares have decreased by 1.59 percent after the market closed.
