News Update

Airbnb Cuts 2Q Loss To $68 Million

• ByAyushi Ray     |    August 13, 2021

Airbnb cuts 2Q loss to $68 Million as revenue exceeds that of 2019. As covid restrictions have eased all around the world, people have started both international as well as vacationing within the country which resulted in this rise in revenue. However ,management is a bit skeptical regarding keeping up this revenue and enhancing it further as Delta variations of Covid make its way in Western countries. They have said that this would affect their bookings for the rest of the year. The San Francisco-based home-sharing company’s stock fell nearly 5% in extended trading. Airbnbs business has picked up along with the recovery in travel that, at least in the U.S., began early this year as Americans began to get vaccinated against the coronavirus. Many vacationers have looked to avoid crowds and steer clear of hotels, creating an advantage for Airbnb and rival Vrbo. 

The home-sharing companies are less reliant than hotels on business travelers, who have been much slower to get their revenue back on the road. However, like airlines, the home-rental companies face new uncertainty because of the recent surge in COVID-19 infections. Last week, Expedia Inc., which owns Vrbo, reported that travel dipped and cancellation rates rose in July, and that the outlook for travel remains uncertain. The company is spending heavily to recruit new hosts.  Despite the precarious state of the pandemic, Airbnb expects to post record revenue in the third quarter, well above the 2019 peak of $1.65 billion. That is based on a sharp rise in unearned fees, or revenue that based on bookings the company expects to receive after customers check in.

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