Airbnb Plans to Close Business in China Due to Covid-19 Lockdown

Airbnb Inc. plans to close its domestic operations in China after the strict lockdown of Covid-19 has added to the pain of intensifying local competition, according to sources. Booking of stays and experiences in China usually account for around 1% of Airbnb’s total revenue.

The home-sharing company is a small competitor in the Chinese travel industry. As of April, the company had more than 500,000 active properties out of more than 6 million active global lists, according to market research firm AirDNA.

So-called super apps like Meituan can deliver food, provide other services such as travel, dominate the market and attract new customers at less cost than Airbnb. People familiar with Airbnb's decisions said it made it difficult for them to compete with them.

The severe and long-term lockdown due to Covid-19 exacerbated Airbnb's problems. People said that running a travel agency in China became more expensive, and the company decided it wasn't worth the payment. 

Airbnb's share price, like other tech stocks, has fallen by more than 30% this year. The company's revenue increased 70% in the previous quarter as people continued to book rentals in the suburbs, despite hosts' prices increasing.