Long-term stays boost for Airbnb
Airbnb last night forecast third-quarter revenue above estimates and announced a $2 billion share buyback, its first since going public, as pandemic-weary travellers make the most of the summer.
The San Francisco-based property sharing company expects current-quarter revenue of between $2.78 billion and $2.88 billion, higher than the average of analysts’ estimates of $2.77 billion. It reported a net profit of $379 million compared with a loss of $68 million a year ago.
Travellers across Europe and North America have made early bookings to visit their favourite tourist spots both domestic and international, accelerating demand for the company’s long-term vacation holiday rentals.
Despite the upbeat outlook the shares fell 7.4 per cent, or $8.59, to $107.75 in late trading on Wall Street.
Airbnb, which tweaked its service in May to facilitate longer rentals, said long-term stays increased nearly 25 per cent from a year ago and by almost 90 per cent from the second quarter of 2019.
Easing Covid restrictions and border reopenings spurred cross-border travel, encouraging hosts to charge more and so boosting Airbnb’s average daily rates by 1 per cent to $164.
The company’s forecast for third-quarter bookings was on par with growth in the second quarter.
The group was founded in 2008 and has a market value of $73 billion. It listed in December 2020.