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Thursday 19 November, 2020
TOP STORY
Airbnb files S-1 form for long-awaited IPO
Airbnb has submitted its S-1 form with the Securities and Exchange Commission for an IPO, which is set to take place in December and raise $3 billion for the company.
If you missed our last newsletter....
1. JetBlue to diversify into short-term rentals
2. Airbnb glitch cancels trips after account deactivations
3. Mabaat launches first-of-its-kind platform in Saudi Arabia
4. Join our LinkedIn group here
5. Frontdesk introduces Flex solutions platform
Editor's comment
19•11•20 Welcome to the latest ShortTermRentalz newsletter!
• The worst-kept secret in the short-term rental industry is finally out: Airbnb has filed for its IPO. Though the IPO is not expected to be finalised until December, it throws up questions about the future of Airbnb and what the short-term rental industry will look like in the 'new normal'.
Airbnb's S-1 filing manifests the financial impact on the company during a tumultuous year, in which it has laid off 25 per cent of its staff and secured $2 billion in emergency funding. Despite posting escalating losses in the first nine months of 2020 of $697m and plummeting gross monthly bookings, though, Airbnb saw a late-summer booking surge and posted net income of $219m in the third quarter.
CEO Brian Chesky has long been predicting a post-pandemic travel "redistribution" and for Airbnb to be at the heart of that movement, it will have to continue innovating and address some significant challenges.
Airbnb's long-term growth strategy will boil down to growing and engaging its host and guest communities, both of which have been disillusioned by pandemic refund policies, to ensure existing guests return and book more frequently. The company will also seek to expand in lower penetration markets [Asia, LatAm], develop its presence in China and design new offerings to placate investors and return to a stable financial footing.
To achieve this, Airbnb will be faced with a number of obstacles it must overcome.
The platform will be coming up against increased OTA competition [Booking and Expedia's rental brand Vrbo] and new players such as Google, whose travel and vacation rental categories are adversely affecting Airbnb's SEO results. Regulations on short-term rentals are only likely to intensify once Airbnb's IPO is completed, so maintaining and enhancing the brand's reputation will be crucial to its future growth.
As I predicted on camera in September, Airbnb has the potential to be one of the most successful stock market debuts in recent years as it has previously proved its ability to operate on a profit. However, Airbnb must also stand up to the record levels of scrutiny it will face at a brand level, the company's most valuable asset, including what the brand stands for and how much it can control what is being delivered.
• Ahead of the publication of my 2021 short-term rental predictions, I am delighted to announce that I will be hosting a special Trendsetters webinar on Thursday 3 December at 4pm GMT. The session will delve into the major trends I am forecasting for the year ahead - join me to stay ahead in 2021!
Joining me for the webinar will be:
• Bob Garner, owner, Casal Dei Fichi
• Vered Raviv Schwarz, president and COO, Guesty
• Jeremy Gall, founder and CEO, Breezeway
• Bill Evans, CEO, BlueZoo
Register for this not-to-be-missed conversation here.
Our two sister sites are also hosting webinars in the same week: you can sign up to our Serviced Apartment News trends webinar on Tuesday 1 December here and our Boutique Hotel News trends session here.
If you have a story you want us to tell the industry, please click here or contact me at my email below.
Paul Stevens, editor
paul@internationalhospitality.media
For more information and sponsorship / advertising opportunities, please get in touch with us.
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