Americans aren't booking as many Airbnbs - and the short-term rental company is feeling the pinch. Airbnb reported a 14 percent drop in after-hours trading on Wednesday after the company issued a report saying it had missed its analysts’ expectations due in part to slowing demand from US customers. The company cautioned on Wednesday that it was "seeing shorter booking lead times globally and some signs of slowing demand from US guests," according to a report by CNBC.
"We're watching these trends closely, along with the impact any macroeconomic pressures might be causing," Airbnb CEO Brian Chesky said. "Lead time" refers to the number of days between a reservation date and the actual arrival date, suggesting more trips are being booked last minute rather than planned out weeks or months in advance. The company anticipates a third-quarter revenue of $3.
67bn to $3.73bn, which falls below analysts' forecast of $3.84bn.
Airbnb did not provide any insight into why fewer Americans might be booking stays on the platform but rising costs caused by inflation certainly aren't helping. In May, a survey found that nearly 80 percent of Americans even considered fast food a "luxury" purchase due to the rising cost of menu items. On top of tightening wallets, Airbnb has also faced pushback in some parts of the country.
In April, the Los Angeles Board of Supervisors voted unanimously to approve an ordinance that restricts the short-term rental market in the unincorporated LA County, accordi.