Booking Holdings announced the suspension and partial termination of its ground transportation services in China, marking a significant shift in its operations in the world's largest travel market.
According to a screenshot of an email shared with its partners, Booking.com Transport Limited outlined two key updates regarding its services in China:
(1) Effective October 22, 2024, Booking has suspended future sale of transportation services for China pick-ups;
(2) Starting December 1, 2024, Booking will partially terminate agreements specifically related to Chinese territory operations.
This decision, implemented through Booking.com Transport Limited, will primarily affect international travelers seeking to book airport transfers and other ground transportation services within China through the platform.
While some industry observers suggest potential challenges with operating licenses for foreign companies in China’s transportation sector, this explanation appears unlikely.
As of April this year, China has issued operating licenses to 349 online car-hailing platforms. Service providers with valid licenses should theoretically be able to continue operations through aggregator platforms.
Furthermore, even as a foreign-owned platform, Booking could potentially secure necessary licenses through legal investment and acquisition channels, making licensing requirements an unlikely barrier to operations.
Another theory points to stricter regulations regarding personal data collection by foreign-owned service platforms in China.
However, there are currently no publicly available specific guidelines or restrictions targeting ground transportation platforms' data security requirements.
The long-term implications of this service suspension remain unclear. As one of the largest global online travel agencies, Booking's decision could signal broader changes in how international platforms operate within China's ground transportation sector.
