Airbnb limits revenue losses to 30% in 2020 despite pandemic

Airbnb, sponsor of the International Olympic Committee (IOC), managed to limit revenue cuts to 30% in 2020 during a terrible year for the international travel industry.

New figures from the short-term room rental service put last year’s turnover at $ 3.4bn (£ 2.4bn / € 2.8bn), up from 4 , $ 8 billion (£ 3.4 billion / € 4 billion) in 2019.

The San Francisco-based company’s net loss for 2020 was $ 4.6 billion (£ 3.3 billion / € 3.8 billion).

However, this was largely due to the ripple effects of the company’s successful IPO last December.

Specifically, Airbnb recorded a stock-based compensation expense of $ 2.8 billion (£ 2 billion / € 2.3 billion).

He explained that at the end of his initial public offering (IPO), he was required to recognize “a significant portion of all stock-based compensation provided to Airbnb employees in recent years.”

The post-IPO increase in Airbnb’s share price also increased the value of warrants issued under a loan agreement reached last April.

This resulted in a further market value adjustment of $ 827m (£ 594m / € 682m).

Airbnb co-founder and chief executive Brian Chesky said the tight revenue cuts showed the organization was
Airbnb co-founder and chief executive Brian Chesky said the restricted revenue cuts showed the organization to be “resilient and inherently adaptable” © Getty Images

Brian Chesky, co-founder and chief executive of the group, said his performance in 2020 showed Airbnb to be “resilient and inherently adaptable.”

Sounding optimistic, he said the trips “are coming back and we are laser-focused on preparing for the trip rebound.”

The company became a sponsor of the IOC in 2019.

The five cities planned to host the Games during its sponsorship period – Tokyo, Beijing, Paris, Milan and Los Angeles – have traditionally been among the group’s largest markets for the rental of private accommodation in the world.

However, the pandemic is said to have resulted in some model shift, with customers more inclined to book relatively long stays in relatively remote locations.

Last April, the group responded to travel restrictions by launching a new online platform for its Olympian Experiences initiative.

This offers special experiences involving athletes to Airbnb customers.

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