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 travelers 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.

Travelers across Europe and North America have made early bookings to visit their favorite tourist spots both domestically and internationally, 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.


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