Airbnb Inc., a company known for its room, apartment and home rental platform, has completely revolutionized the world of travel in recent years, creating a whole new market.
Since December 2020, despite the economic crisis caused by the global pandemic that has also severely affected tourism and stopped travels, the company has decided to debut in the stock market reaching a value of over 100 billion dollars.
A few days ago, Airbnb published its first financial report since it landed on the stock market: Airbnb lost 3.9 billion dollars during the first half of the year as a publicly traded company, in relation to 352 million dollars in 2019.
In the third quarter of 2020, revenue fell “only” by 18% and in the fourth quarter the company recorded 859 million dollars in revenue, corresponding to a fall of 28%, in addition the total annual turnover fell by 30%, reaching 3,3 billion dollars.
In April, due to the significant drop in bookings that reached about 72%, Airbnb implemented a global refund policy and thus distributed a billion dollars to cover the expenses related to the many cancellations.
The company’s total losses were also weighed down by an emergency loan worth 827 million dollars and the stock-based compensation, related to its IPO, of 2.8 billion dollars.
Despite the many difficulties faced, Airbnb has shown a recovery thanks to new strategies aimed at reducing costs and thanks to a business based on shorter trips to less common areas. Also for this reason, the company’s stock market value is still higher than the total values of hotel giants such as Hilton, Marriott and Hyatt.
“Travel is coming back”, said Brian Chesky, CEO of Airbnb. “We believe people are yearning for what has been taken away from them”.
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