Airbnb is closing domestic business in China - CNBC
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Airbnb (NASDAQ:ABNB) is reportedly shuttering its domestic Chinese operation.
Citing sources familiar with the matter, CNBC reported on Monday that all mainland listings in China will be wound down by the close of the summer. Shares fell just over 1% in intraday trading after the news was released. 
Prior to the COVID-19 pandemic, the internet-based travel provider had struggled for years to carve out a place in the market as domestic competitors like Tujia, Meituan, Mayi, and Xiaozhu challenged its inroads to the huge market. Prior to the outbreak of the pandemic, that strategy looked promising with growth beginning to shine through in 2019.
However, according to recent 10-K filings, that trend was quickly shifted by epidemiological restrictions in the region.
âWe will continue to incur significant expenses to operate our business in China, and we may never achieve profitability or sizable supply penetration in that market,â the companyâs most recent 10-K stated, adding that the market was not of significant importance to the overall business. 
As lockdowns have put Airbnb's (ABNB
+0.3%) business essentially on hold for the past two years, the fleeting importance of the market has likely been only further diminished.
Despite the pullout of the Chinese market, the company will by no means ignore Chinese travelers. In contrast to the inconsequential revenue derived from China as a market, Chinese travelers account for a significant portion of global travelers. According to travel data provider Skift, Chinese outbound tourism spend topped $277 billion total in 2019, over $120 billion greater than US expenditure in the same year.
CEO Brian Chesky recognized that fact, explaining the importance of outbound Chinese travelers in the companyâs latest earnings call.
Per CNBC sources, the Beijing office of the internet hospitality leader will remain open specifically to tap into this outbound demand. 
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