No Vacancy: Woke Airbnb to Close Business in China Due to Fierce Competition
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Airbnb to Close in China
Last updated Sep 19, 2022
Image credit: Getty Images [via Business Insider]Facts
- Airbnb announced on Tues. that it will remove all 150K of its listings in China starting from Jul. 30, as the country's zero-COVID policy, lockdowns, and travel restrictions continue.
- The ability to book for dates beyond Jul. 29 has been suspended, according to screenshots of the Airbnb notice shared across Chinese social media. Bookings from outside China after that date have also produced an error message.
- Airbnb has operated in China since 2016 and has struggled to compete with the country's domestic platforms. The Chinese market has only made up around 1% of Airbnb's business in recent years, even though the PRC's market is the largest in the world.
- Airbnb generated $6B in revenue last year, up 77% from the previous year. However, its stock has fallen 34% this year amid a wider downturn, even as tourism and the demand for travel services have surged.
Spin
Anti-China narrative
This was a long-time coming. AirBnB has been a staunch and shameless supporter of the communist regime in Beijing, but even that wasn't enough to save it from the fierce competition of the Chinese market; the government's stifling of tourism through its zero-COVID policy was simply the final straw.
Pro-China narrative
China's zero-COVID is essential to keeping the population safe, and business will simply have to adapt to this reality. A recent study suggests that over 1.5M people could die in China if the country were to lift its zero-COVID policy. Large companies must understand that they have a duty to the people over profits.
