China Hit With CRIPPLING Blow As Major Business Leaves
(FeaturedNews.com) – Airbnb has operated in China since 2016, but the wildly successful business’ plan is soon to change. An anonymous source recently told The New York Times the company would be leaving the nation due to increased competition. The source explained local companies are out-pricing Airbnb, which has slowed business considerably.
The zero-tolerance COVID-19 policy in the country is also hurting the company, which had to implement special cleaning procedures to meet national health safety requirements. Additionally, the increasing prevalence of lockdowns has all but wiped out Airbnb’s profitability in the region. CNBC reported the company is working to close down all listings by summer.
Airbnb to remove listings in China https://t.co/8u48RfcX5G
— Washington Examiner (@dcexaminer) May 24, 2022
Airbnb plans to refocus efforts on advertising services to those traveling from China, which has been a more significant segment of business for the company. The source told CNBC there are no plans to close the Beijing office, which employs hundreds of people.
Stock prices for the company have fallen over 30% this year despite a general rebound within the travel industry. Airbnb also closed services in Russia and Belarus due to the Russia-Ukraine conflict, effective April 4. Still, CNBC reported sales from China only made up about 1% of the company’s profits recently. The company didn’t respond to requests for a statement.
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