Airbnb exits China: insights from platform competition

Abstract

Purpose This study aims to provide insights into Airbnb’s exit from the China market, specifically from the perspective of platform competition. Design/methodology/approach Based on the understanding of the evolution and competition of peer-to-peer (P2P) accommodation market in China and the double-edged network effects, this viewpoint article provides an in-depth discussion on Airbnb’s withdrawal from the China market. Findings This viewpoint paper contends that Airbnb faced increasing challenges in establishing unique competitive advantages against local rivals, who demonstrate a capacity for innovation and maintaining loyal customers in adapting to the market evolution. Consequently, this may inhibit Airbnb from attracting the mainstream market and lead Airbnb into a negative spiral, exacerbated by indirect network effects. Originality/value This study offers insights into the failure of an internationalisation process, drawing from an analysis of the competitive environment and the competition strategies of P2P accommodation platforms in China. These findings have practical implications for the implementation of international business strategies in P2P accommodation.