Daily Management Review

Airbnb is expecting drop in bookings due to the delta COVID-19 strain


08/16/2021


Rental housing service Airbnb expects the number of bookings on the site to decline in the third quarter compared to the same period in 2019. The company's stock fell 4 percent after the announcement.



piqsels
piqsels
Executives at international apartment rental service Airbnb warned investors of a possible drop in bookings in the third quarter of 2021 compared to the same period in 2019 due to the spread of a new strain of the coronavirus.

Although Airbnb's Q2 2021 revenue grew nearly 300% year-over-year to $1.34 billion, the company‚Äôs management fears that the delta strain of the coronavirus could negatively impact business. Revenue grew in the second quarter thanks to a recovery in tourist traffic, according to a letter to shareholders that Airbnb published along with its quarterly earnings. 

Over the past few weeks, the company set a record for the number of simultaneous guests staying in Airbnb rentals in the U.S. since the pandemic began. But Q3 2021 bookings will be lower than the same period in 2019, though Airbnb expects to generate record quarterly revenue. The impact of COVID-19, as well as the emergence and spread of new variants of the virus, including the delta strain, will continue to affect travelers' behavior - how often they book and cancel, Airbnb said.

The company already sees a negative impact of the new restrictions because of the spread of variants of the virus and the slowdown in vaccination rates on the number of cancellations.

source: forbes.com