Techlife News - USA (2020-12-05)

(Antfer) #1

That would value the company at nearly
$35 billion at the high end of its offering price,
or $31 billion at the low end.


It’s a remarkable comeback for the company
that delayed its IPO when the coronavirus
pandemic crippled global travel in the spring.
Airbnb has more than 7 million listings on its
platform, run by 4 million hosts worldwide.


Its revenue fell 32% to $2.5 billion in the first
nine months of this year as travelers canceled
their plans. Hosts revolted when Airbnb
canceled reservations without penalties. In May,
the company cut 1,900 jobs — around 25%
of its workforce — and slashed investments
in projects not related to its core business,
including movie production.


But Airbnb has recovered more quickly than
traditional hotels as travelers seek whole homes
in rural areas far from crowds. The number
of nights and experiences booked, which
plummeted 72% April, were down about 20% in
July, August and September.


In Miami, for instance, short-term rental
occupancy reached 83% in October, while
average occupancy for hotels was 42%,
according to STR, a hospitality data firm. In
Nashville, rental occupancy was 59% while hotel
occupancy was 44%.


Airbnb said it also expects more business people
will book vacation rentals, since many can now
work from home.


“We believe that the lines between travel and
living are blurring, and the global pandemic has
accelerated the ability to live anywhere,” Airbnb
said in a recent financial filing.

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