Tourism decline hits Airbnb

Tourism decline hits Airbnb

The COVID-19 pandemic is seriously affecting many businesses and companies. But two of the sectors that are suffering the most this year are restaurants and tourism. The latter has been very touched even after confinement, since many are afraid to go on vacation. And in this sector are companies such as Airbnb, which has announced that revenues for the second quarter of the year have fallen by no less than 70%.

The shared housing startup has become one of the most important online companies in the world. However, this year it is suffering a lot due to the pandemic that we have worldwide. As published by Bloomberg, Airbnb revenue fell 67% in the second quarter. The company’s quarterly revenue plummeted to $ 335 million, well below the more than $ 1 billion it achieved last year in the same period.

However, in the first quarter of the year Airbnb generated 842 million dollars in sales. The company reportedly posted a loss in the second quarter of $ 400 million, while in the first quarter losses were $ 341 million. In the same period of the previous year, the company reported losses of $ 292 million.

Airbnb reactivates its plans to go public

falling tourism hits Airbnb stock market

This year’s poor results haven’t slowed Airbnb’s IPO plans. The tourist rental apartment company plans to go public on Wall Street in late 2020 and it plans to file the documentation with the Securities and Exchange Commission starting this month.

Airbnb had initially planned to start the process in March, but had to delay its plans due to the pandemic. As reported by the Wall Street Journal, Morgan Stanley has been the bank chosen to lead the operation.

The company that goes public at the end of the year will be very different from the one that announced its plans at the end of last year. In May Airbnb laid off 1,900 employees, 25% of its workforce, and its valuation has fallen from $ 31 billion to $ 18 billion today.

Brian Chesky, CEO of Airbnb, acknowledged in an interview with CNBC that in a period of between four and six weeks they have lost much of the business that it took them to build 12 years. Still, the summer has given Airbnb a little respite, as bookings have started to rise and, according to company data, in July they were already over a million nights.

Via | Bloomberg

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