Airbnb Inc. plans to close its national business in China after the harsh blockades of COVID-19 increase the pain of increased local competition, according to people familiar with its decision.
Bookings for stays and experiences in China typically account for about 1% of Airbnb’s global revenue, people said.
The housing company is a small competitor in China’s travel industry. It had more than 500,000 active properties as of April, according to market research firm AirDNA, of its more than 6 million global active listings.
So-called super apps like Meituan, which offers food and other services such as travel, dominate the market and can acquire new customers without spending as much as ABNB Airbnb.
This makes it difficult to compete with them, said people familiar with the Airbnb decision.
COVID-19’s harsh and continuous confinement exacerbated Airbnb’s problems. People said it was more expensive to run a travel business in China, and the company decided it wasn’t worth the payment. CNBC previously reported on Airbnb’s plans to leave China.
An extended version of this report appears on WSJ.com.
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