Airbnb is the first travel company to rebound from the pandemic. – Reuters
NEW YORK: Airbnb Inc chief executive officer Brian Chesky says he feels good about the fourth quarter, citing the home-rental site’s adaptable sales model and customers’ continuing interest in long-term stays.
Speaking in an interview with Bloomberg Technology anchor Emily Chang, Chesky responded to Airbnb’s shares dropping 13% on Wednesday after the company said it expects the pace of bookings to “moderate slightly” in the last three months of the year.
The forecast followed Airbnb reporting record revenue in the third quarter and its highest-ever adjusted earnings before interest, tax, depreciation and amortisation.
“This is a very uncertain time and people are looking for indications of what the future holds,” Chesky said. “We tried to make clear that we feel very confident about the fourth quarter.”
Chesky said Airbnb was the first travel company to rebound from the pandemic because – as people cut back on cross-border travel – they increasingly sought out nearby homes in rural environments for extended stays.
In response to a question about whether Airbnb rentals will continue to be affordable, Chesky said, “They will be.”
Prices have gone up because people have switched to renting larger houses for families, instead of small apartments in the city for vacation trips, Chesky said.
He expects the average daily rate to remain stable.
In coming years, long-term stays will grow as a percentage of Airbnb’s business, he said.
“I think more people will be flexible, and maybe fewer people will have leases. This is a huge new growth opportunity for us in the years to come.”
As the economy slows down, Airbnb wants to ensure that its value is even better.
“We want to make sure our pricing is dynamic,” he said, noting that Airbnb is investing in pricing tools for hosts so they can remain competitive with hotels.
Chesky said that no matter how bad or good the economy is, it won’t change the way the business is run.
That’s why Airbnb has planned to hire 7% more employees this year, and is sticking with that target, not cutting back like some other tech companies.
“We’re not pulling back,” he said. “In fact, we’re stepping on the gas.” — Bloomberg
