{"id":4006,"date":"2023-08-10T08:00:00","date_gmt":"2023-08-10T06:00:00","guid":{"rendered":"https:\/\/natixis.ezine.intercountry.com\/?p=4006"},"modified":"2023-08-07T14:00:50","modified_gmt":"2023-08-07T12:00:50","slug":"airbnb-profit-jumps-to-650-million-in-2q-as-bookings-increase-and-rental-rates-hold-steady","status":"publish","type":"post","link":"https:\/\/natixis.ezine.intercountry.com\/index.php\/2023\/08\/10\/airbnb-profit-jumps-to-650-million-in-2q-as-bookings-increase-and-rental-rates-hold-steady\/","title":{"rendered":"Airbnb profit jumps to $650 million in 2Q, as bookings increase and rental rates hold steady"},"content":{"rendered":"\n

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FILE – The login page for Airbnb’s iPhone app is seen in front of a computer displaying Airbnb’s website on May 8, 2021, in Washington. Airbnb reports earnings<\/span> on Thursday, Aug. 3, 2023. (AP Photo\/Patrick Semansky, File)<\/sub><\/figcaption><\/figure><\/div>\n\n\n

By DAVID KOENIG AP Business Writer<\/p>\n

Airbnb said Thursday its second-quarter profit jumped more than 70% over last summer, to $650 million, as revenue rose on strong bookings for summer-vacation rentals.<\/p>\n

The San Francisco company said bookings grew 11% over the same period last year. Still, they were a bit lighter than analysts expected.<\/p>\n

The shares fell about 1% after three hours of late trading.<\/p>\n

Airbnb has been battling complaints that high cleaning fees have pushed prices closer to, or even above, hotels for short rentals. It changed its site to display cleaning fees upfront<\/span>, when consumers are price-shopping.<\/p>\n

Prices, however, remain stubbornly<\/span> high. Airbnb had forecast<\/span> that average rates customers pay per night would fall slightly<\/span> in the second quarter compared with last year. Instead, the average nightly rate rose 1% to $166.<\/p>\n

CEO Brian Chesky said on a call with analysts that the price customers book is lower than list prices on average.<\/p>\n

“So we do see people gravitating toward more affordable stays,” Chesky said. He said some of the modest increase over last year’s average rate is due to people booking bigger homes.<\/p>\n

Chesky argued that hotels are raising prices faster, but Airbnb is trying to nudge<\/span> many hosts to drop<\/span> their rates.<\/p>\n

“Most hosts are not booked most nights,” he said. “If they lower the price just a little bit, they will add more bookings, more nights, and they’ll end up making more money.”<\/p>\n

The company said new tools that make it easier for hosts to compare prices they charge to the nearby competition “had a moderating effect” on rates in the second quarter. However, it expects third-quarter average prices to be higher than a year ago, partly because of a shift<\/span> to higher-priced listings.<\/p>\n

The rental giant has recently increased its effort to offer more single rooms inside homes and apartments as a low-cost option, particularly for younger travelers.<\/p>\n

And it is fighting back against cities that seek<\/span> to limit or more tightly<\/span> regulate short-term rentals.<\/p>\n

Airbnb said Thursday its second-quarter profit rose from $379 million in the same period last year, when the company took $89 million in restructuring charges. Adjusted to exclude special items, Airbnb said it earned 98 cents per share.<\/p>\n

Revenue increased 18% to $2.48 billion.<\/p>\n

Analysts were expecting earnings<\/span> of 80 cents per share on $2.42 billion in revenue, according to a FactSet survey.<\/p>\n

Bookings rose to 115.1 million in the quarter, up from 103.7 million a year earlier and more than one-third higher than in 2019, before the COVID-19 pandemic. But analysts expected 117.6 million.<\/p>\n

Airbnb predicted that third-quarter revenue will be $3.3 billion to $3.4 billion. Analysts were expecting $3.23 billion.<\/p>\n

The company said it added a record number of new listings in the quarter, pushing its total over 7 million.<\/p>