April 6, 2016 (Reuters) – Shares in Airbnb Inc (ABNB.O), fell as high as 6% Thursday after an independent publication published a report detailing the unpleasant experiences customers had while renting short-term apartments through the platform.
According to The Bear Cave report horror stories of guests staying in individually managed Airbnbs are common on the internet. These include last-minute cancellations and surprise cleaning requirements, as well as many examples of guests finding hidden cameras inside bedrooms and bathrooms.
Airbnb did not respond.
In afternoon trading, the company’s shares fell 5%.
Airbnb’s revenue for 2022 was 40% higher than the previous year. It was also the company’s most profitable year ever. The San Fransico-based company reported a 16% rise in active listings during the fourth quarter 2022 compared to the same period 2021. The number of nights and experiences booked increased 20% over a year ago, but this was below analysts’ estimates.
Travel companies stated earlier this year that they have not seen a decrease of demand despite concerns about a slowing economy.
A fire broke out last month in Montreal’s building that was being used by both long-term residents as well as short-term guests who rented accommodation through Airbnb. Officials from the city said that the units in the residential building weren’t meant to be rented for such purposes.
Some of the top professional hosts in the company have left Airbnb and created their own booking platforms, offering lower rates and better service.
According to the report, the company’s revenues could be further threatened by the increase in professionally managed properties. However, some analysts are more optimistic about Airbnb’s prospects.
“Airbnb.. sits within a much better supply market, and appears much more like Amazon: Everything on Amazon can pretty much be purchased another way, however, that does not make it less valuable,” Richard Clarke, a Bernstein analyst, stated in a note.
Airbnb laid off some staff in March to reduce costs and protect margins.
Reporting by Priyamvada in Bengaluru and Doyinsola Oladipo in New York; Editing: David Gregorio
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