Airbnb, the “do-it-yourself” vacation destination rental website, is sounding the alarm bells that demand that is slowing to a crawl. Last Wednesday, stocks tumbled as much as 14.6% in light of their lackluster second-quarter results.
The booking website was once an absolute giant, especially during the years preceding the Coronavirus. Travelers loved the ease of booking and the wide options of “houses” to stay in to give a more local feel to their stay, as opposed to the traditional hotel.
However, now it seems the pendulum may be swinging the other way, proving that time is a flat circle indeed.
Airbnb is reporting a slow demand due to US customers, suggesting that they are going elsewhere for their lodging accommodations.
With many customers now complaining of “low-quality” listings, invasive owners installing cameras, and enforcing a “laundry-list” set of rules, renters and travelers are now reaching a breaking point. Due to these extremities, travelers are flocking back to traditional hotels.
“I want to walk into a hotel room and not have to worry about running the laundry or doing dishes for the host,” wrote one Reddit commenter. It is indicative of the consumer mindset that is fueling this switch. Additionally, added “cleaning” and security fees have made the cost of an Airbnb not much more competitive than other travel lodging options.
However, it wasn’t all doom and gloom for Airbnb.
One sector of notable growth they are experiencing is ‘Nights and Experiences’, which accounted for its highest second-quarter growth. This feature offers a more curated-traveling experience, allowing visitors to book tickets for things such as walking/bike tours and sightseeing. This also meant they saw growth in regions outside of the U.S, with the Asian Pacific and Latin American regions leading the way.
Despite the slump, many financial experts and analysts still believe that the company is strong and will find ways to rebound.
