- Airbnb, Inc ABNB CEO Brian Chesky continued to increase room supply on the travel platform, with the average price per night soaring more than 40% above pre-pandemic levels, the Financial Times reported.
- He laid out countermeasures, including a move to pay existing hosts to help new ones get set up on the platform as longer-term plans to reduce cleaning fees.
- Among the new hosts joining the platform is Chesky, whose San Francisco home is now among those listed.
- The average daily cost of a stay on Airbnb was $156 in July-to-September, up 5% versus 2021 and over 40% compared with 2019.
- “If you’re looking for a city on a certain day, kind of last minute, that’s not nearly what we’d want,” Chesky said. “So I’m not satisfied; I’d like it to become more affordable.”
- Chesky said the rise in rental rates continued to be driven by supply constraints in popular locations and a dramatic spike in the cost of cleaning fees added to customers’ bills.
- He considered launching a marketplace that would allow local cleaning providers to compete against each other more directly to reduce rates.
- Supply on the site has shown signs of picking up, with active listings up 15% over last year. Airbnb launched several service updates this week to increase the number of available rooms and properties.
- Airbnb said it would also verify the identities of all Airbnb customers by spring 2023. Chesky said Airbnb had no plans to freeze hiring or change its recruitment plans.
- The company raised the insurance cover to $3 million and now includes hosts’ parked cars, or boats, at the property.
- Price Action: ABNB shares traded lower by 1.5% at $105.39 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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