Rental service for homes A source close to Airbnb told AFP Monday that the company is shutting down its operations in China due to the ongoing pandemic.
According to the source, Airbnb will no longer book stays or tourist “experiences” in China, instead focusing on assisting Chinese citizens with travel plans outside of the nation.
The business, which is based in San Francisco, declined to comment.
Airbnb began operations in China six years ago and has since hosted over 25 million visitors in private homes. According to Airbnb, bookings in Chinese households account for only one percent of all bookings in recent years.
In China, Airbnb faced stiff competition, so Covid-19 made its business there more cumbersome and costly.
Even while much of the rest of the globe has learned to live with the coronavirus, China has maintained its zero-Covid policy, enforcing tight lockdowns and movement restrictions in numerous cities.
As Covid-19 restrictions loosen and crossings reopen, Airbnb anticipates outbound tourism from China, which had been surging prior to the outbreak, to resume.
Bookings on Airbnb reached a new high in the first quarter of this year, according to the company’s latest earnings report, indicating that the Covid-19 outbreak has curbed vacation demand.
Despite the Omicron outbreak and ongoing infections, Airbnb’s lodging and travel “experiences” bookings surpassed 102 million in the first three months of this year, setting a new quarterly record, according to the firm.
In a letter to shareholders, Airbnb stated, “Guests are booking more than ever before.”
“We see strong sustained pent-up demand in the future.”
The company stated that while individuals are still booking stays outside of cities and staying close to home, they are also returning to cities and doing cross-border journeys.
