People still traveled: Airbnb survived the crisis better than expected

Friday, February 26, 2021

They still traveled
Airbnb survives the crisis better than expected

2020 was a horror year for the tourism industry. The pandemic is also initially affecting Airbnb with full force. But in the end, the mediation portal does far better than feared. For the current year, the US group expects the travel industry to make a comeback.

The apartment broker Airbnb did better in the Corona year 2020 than initially assumed. Overall, revenues fell by 30 percent to 3.4 billion dollars, as Airbnb announced after the US market closed. After the severe slump at the beginning of the pandemic, business recovered significantly; in the final quarter there was only a drop in sales of 22 percent to $ 859 million compared to the previous year.

Nevertheless, the crisis tore deep holes in the balance sheet – Airbnb made a total loss of $ 4.6 billion in 2020. The enormous minus was not only due to the burdens of the pandemic, which brought business to a standstill in the spring and led to massive cancellations. Airbnb also had to cope with high costs due to its IPO in December. At the premiere on the New York Nasdaq, investors had fought over the shares, since then the price has risen sharply. The papers had been issued for $ 68 and last cost a good $ 182. The market value of 109 billion dollars is higher than that of the hotel chains Marriott, Hilton and Hyatt combined.

Strong recovery expected

The quarterly and annual reports were also well received by the market, with the share initially posting price gains after the trading hours. Analysts had expected significantly worse results on average. The numbers showed that Airbnb is resilient and adaptable, said CEO Brian Chesky. At the height of the crisis, the company had warned of a drop in revenues of more than 50 percent for 2020. The fact that it didn't turn out to be that bad was mainly due to bookings by users who, during the pandemic, relied on apartments that are closer to home and are easily accessible by car.

Airbnb expects the travel industry to make a comeback in 2021. With the increasing spread of vaccines and the end of the lockdowns, a strong recovery will set in, it said in the outlook. Airbnb is fully focused on preparing for this boom. Founded in 2008 in San Francisco, the company started hitting the hotel industry with online brokerage of private rooms and apartments. However, the business model is not without controversy. Airbnb is accused, for example, of contributing to the shortage of living space or of promoting disturbing rush of tourists.