Airbnb is making a strong 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 big earnings growth for the third quarter.
Back in May of 2020, Airbnb seemed on the precipice when the company CEO Brian Chesky announced the laying off of nearly 2,000 employees. But, the tourism sector returned strongly from the pandemic lows, and now Airbnb seems to be back, stronger than ever. According to this report, Airbnb has over 12 million listings worldwide as of this month. And date from Statista as of June showed over 300 million Airbnb experience nights booked at that point.
Airbnb’s Average Daily Rate (ADR) in 2021 was $137/night, up from $110/night in 2020. As I type this number has climbed to $149/night, which is a 15% rise. The Nasdaq report reveals net income came to $834 million, which is up 280%. Another impressive figure is Airbnb’s total number of users, which reached 163 Million users worldwide
Back in 2020, the company peaked at a valuation of over $31 billion before the pandemic, then sunk beneath the $20 billion mark when the full effects of COVID smashed everyone in the industry. Recently, Airbnb stocks his $109.57, but as of yesterday, the share price at the closing was $95.38. This is far beneath a February peak of $186.64. The news that the company has made it possible for apartment renters to host their rentals will certainly affect the share price, as well as the concerns competing businesses have.
Finally, legislation and pushback from the hotel industry worldwide is causing Airbnb a lot of trouble. This Boston Globe report on the comeback of hotel restaurants shows hotel stays’ past and current allure. Lawmakers from Arizona to 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 some years now. Things like lack of transparency and data security are at the forefront now. So, it remains to be seen whether or not Airbnb can continue as before, with rapid expansion.