Airbnb is making a comeback, according to Nasdaq and other sources. The world’s most popular online platform that offers rental properties and experiences for vacations and extended stays reported strong earnings growth in the third quarter.
In May 2020, Airbnb seemed on the brink of a precipice when company CEO Brian Chesky announced the layoff of nearly 2,000 employees. But the tourism sector has come back strong after pandemic lows, and now Airbnb appears to be back, stronger than ever. According this reportt, Airbnb has more than 12 million listings worldwide as of this month. And date of Statistical by June, more than 300 million Airbnb Experience nights had been booked by that time.
Airbnb’s average daily rate (ADR) in 2021 was $137/night, up from $110/night in 2020. As of this writing, that figure has risen to $149/night, a 15% increase . The Nasdaq report reveals that net profit was $834 million, an increase of 280%. Another impressive number is the total number of Airbnb users, which reached 163 million users worldwide.
In 2020, the company peaked at a pre-pandemic valuation of over $31 billion, then sank below $20 billion when the full effects of COVID shattered everyone in the industry. Recently, Airbnb stowed its $109.57, but yesterday the stock closing price was $95.38. It’s well below a February peak of $186.64. The news that the company has allowed apartment tenants to host their rentals will certainly affect the share price, as well as the concerns of competing companies.
Finally, legislation and the decline of the hotel industry around the world are causing a lot of problems for Airbnb. This The Boston Globe’s report on the return of hotel restaurants shows the past and current appeal of hotel stays. The legislators of Arizona here in the EU are cracking down on the short term rental market. Hotel competitors have been campaigning to rein in Airbnb and others for a few years now. Things like lack of transparency and data security are now front and center. So it remains to be seen whether or not Airbnb can continue as before, with rapid expansion.
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