Bookings rose 8.7% in the second quarter to 125.1 million, falling well below analysts’ estimates.
And Airbnb said it expects “sequential moderation” of growth in bookings in the third quarter, too, signaling that results will disappoint analysts who had projected an 11% gain amid the peak summer travel season. The company’s forecast sets it up for the slowest pace of growth since 2020. Even as the pandemic retreats, headwinds have dogged the broader industry.
Last week, Booking Holdings Inc. gave worse-than-expected guidance , blaming “mild moderation” in the European travel market and consumers who are opting for lower-star hotels and shorter stays, particularly in the US. advertisement Don't want to see this? Remove ads Airbnb’s shares slid 14.
7% after trading opened in New York on Wednesday, their biggest intraday drop since the company went public in 2020. Airbnb’s outlook “will likely only further stoke the soft consumer thesis,” RBC Capital Markets analysts led by Brad Erickson said in a note, calling the company’s report disappointing. For its part, Airbnb said it’s “seeing shorter booking lead times globally and some signs of slowing demand from US guests.
” Latin America and Asia Pacific continue to be its fastest-growing regions, the company added. Airbnb forecast revenue for the current quarter of $3.67 billion to $3.
73 billion, short of analysts’ consensus of $3.84 billion. The company cited its challenges with foreign currency exchan.