Sources tell CNBC that Airbnb Inc ABNB is shutting down its domestic business in China.
What Happened: According to two sources, the company plans to remove all of its listings in China by this summer, CNBC reports. Employees of Airbnb in China will be informed of the decision as early as Tuesday morning.
The company plans to maintain a presence in the country, with hundreds of employees working out of an office in Beijing. Even though Airbnb is ending its listings in mainland China, sources say providing homes and experiences for those traveling abroad will become the company’s focus.
A source tells CNBC, there wasn't a significant amount of overlap between the domestic business and the listings outside the country being provided to Chinese customers.
Impact Of The Decision: Airbnb entered the Chinese market in 2016, although competition from domestic rivals and the pandemic shutdowns have played a role in the company’s decision to exit the market, the sources indicate.
The company’s decision is not likely to have a significant impact on Airbnb’s bottom line, as revenue generated from China listings have amounted to just 1% of overall profits in recent years.
ABNB Price Action: Shares of Airbnb are up 0.31% on Monday to $112.90 according to Benzinga Pro.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.