Airbnb Inc. plans to close its domestic business in China after harsh COVID-19 lockdowns compounded the pain from mounting local competition, according to people familiar with its decision.
Bookings of stays and experiences in China typically account for about 1% of Airbnb’s overall revenue, the people said.
The home-sharing company is a small competitor in China’s travel industry. It had more than 500,000 active properties through April, according to market-research firm AirDNA, out of its more than 6 million active global listings.
So-called super apps such as Meituan, which delivers food and offers other services including travel, dominate the market and can acquire new customers without spending as much as Airbnb ABNB, +0.65%. This makes them tough to compete with, said the people familiar with Airbnb’s decision.
Harsh and continuing COVID-19 lockdowns exacerbated Airbnb’s problems. It was becoming costlier to operate a travel business in China, the people said, and the company decided it wasn’t worth the payout. CNBC earlier reported Airbnb’s plans to exit China.