Supporting outbound travel in China
When Airbnb launched our business in mainland China in 2016, we did so knowing outbound travel was our biggest opportunity. China is home to nearly one-fifth of the world’s population, and building a business for Chinese travelers was an important way to contribute to our global network and fulfill our commitment to connecting people from communities and neighborhoods around the world.
Our teams in Beijing and San Francisco initially focused on building an outbound business to support Chinese travelers traveling abroad. We later invested in growing our domestic homes and Experiences offerings predicated on the thesis that this would drive the growth of our outbound business. We grew these offerings successfully: since 2016, more than 25 million guests have been hosted in China. Our success in China is testament to the talented and hard-working team there and our incredible Hosts.
However, the overlap between our outbound and domestic businesses was not strong. The domestic segment is costly and complex to operate. COVID-19 worsened these issues and heightened their impact. Stays in China have accounted for approximately one percent of revenue over the last few years.
We continue to believe supporting Chinese travelers as they explore the world is the best opportunity for Airbnb in China. According to the UNWTO, in 2019, the number of outbound tourists from China reached nearly 155 million, almost three times as many as 2010. We expect outbound tourism from China to rebound as borders reopen and COVID-19 subsides.
Given this, we have made the decision to focus on our outbound business in China and suspend our domestic homes and Experiences. Airbnb will continue to have hundreds of employees based in our Beijing office supporting both local and global initiatives.
This decision will impact our incredible Host community across China. China has a sizable short-term rental market and we hope Hosts will continue to share their homes through other platforms. To make the transition for our Host community easier, we will be waiving our Host fees from now until we suspend our domestic homes and Experiences later this summer.
While Nights and Experiences booked in the Asia Pacific region remain below 2019 levels, we continue to believe the region represents one of the biggest untapped growth markets for Airbnb over the next five years, with China outbound as a cornerstone of that growth.
The region is home to one of the largest populations of Millennials and Gen Zers in the world – travelers who prefer the sort of local, authentic experiences that only Airbnb can offer. New research commissioned by Airbnb and undertaken by YouGov underscores enthusiasm across the region for international travel, including in China, where almost two-thirds of respondents (63%) plan to travel internationally as soon as they’re able.
As borders across Asia Pacific begin to open up, we look forward to supporting our Host community there as they welcome guests from across the region and around the world.