Airbnb predicts weaker growth for third quarter
Airbnb predicted weaker growth for the rest of the year on Wednesday. Last year, strong bookings in Asia and Latin America had significantly boosted profits.
The short-term letting platform’s shares fell by more than 6% in after-hours trading.
In the second quarter, Airbnb saw travel appetite in the United States pick up again after a temporary dip in April. This pattern was also observed at other travel companies such as United Airlines and Wyndham Hotels.
The sector remains cautiously optimistic, hoping that consumer confidence will continue to improve despite President Donald Trump’s trade strategy and ongoing inflation.
According to Airbnb, the growth in the number of booked nights accelerated each month during the quarter ending in June. That growth was mainly due to an increase in domestic travel in the US.
The company reported quarterly revenue of $3.10 billion, compared to analysts’ expectations of $3.04 billion.
For the third quarter, Airbnb expects revenue between $4.02 and $4.10 billion. Analysts had on average expected $4.05 billion. Net profit amounted to $264 million.
Meanwhile, the number of legal issues surrounding Airbnb is increasing.
The tax authorities of the Brussels-Capital Region have sent fines and additional tax assessments to nearly 2,000 private landlords based on data from Airbnb. The sanctions include fines of €1,000 per unregistered rental unit, combined with a tourist tax of €3 per night. Landlords have 31 days to submit evidence, such as screenshots or administrative records, to correct the calculation.
The operation was made possible by a legal decision in 2022, which obliges Airbnb to share data with the Brussels administration. For that year alone, the fines already amount to between €1.5 and €2 million.
In Spain, Airbnb has had to remove 65,000 illegal listings from its website, according to the Spanish Ministry of Consumer Affairs. In the meantime, the ministry has identified more than 55,000 additional listings that it also considers illegal. In total, this concerns more than 110,000 listings.
Airbnb unsuccessfully challenged the ministry’s removal requests in court. In Spain, a registration number is required for any room or apartment rented out for a short period. It must also be clear whether the landlord a private owner or a company.
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