This is fair. A lot of hotel groups have seen their revenue drop 75 to 90 percent. Airbnb was never profitable (I think) and this round of trip cancellations put them deeply in the red.
Airbnb Racks Up Hundreds of Millions in Losses Due to Coronavirus
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Re: Airbnb Racks Up Hundreds of Millions in Losses Due to Coronavirus
#22How? What are they spending their money on? They need to put people on leave and "pause" their business as quickly as possible!
They’re losing revenue due to the massive amount of recently cancellations.
I think the OP was asking, why is income negative on any revenue (they lost in Q3/Q4 of FY19), what are the expenses that can't be covered?
Re: Airbnb Racks Up Hundreds of Millions in Losses Due to Coronavirus
#23Makes me wonder if they will start to offer "trip protection" or the like. The economics of it checks out.
Who would underwrite that at this moment?
Great question. But, at a company in the past that I worked at, they just took a gamble and hoped they wouldn't have to pay it out. Morals aside, simpler times.
Re: Airbnb Racks Up Hundreds of Millions in Losses Due to Coronavirus
#24Absolutely nobody find I surprising that China claims no new cases? I'm beginning to wonder if they're lying... (For Chinese two cent army, look up tiananmen square)
i am still speculating that they manufactured the virus as a way to curb their elderly population. lots of people i come in contact with are saying the same thing. its a little too coincidental that this virus is dangerous to mostly the elderly.
Re: Airbnb Racks Up Hundreds of Millions in Losses Due to Coronavirus
#25Why should Airbnb be making losses at this point? Are they refunding booking fees to customers while paying hosts? Traditional hotels lose money because of huge amount of, costs (both fixed and variable) associated with running a hotel. shouldn't Airbnb be making so much money at this point? Edit: "...at this point?" not in reference to the current pandemic, rather at this point of how far Airbnb has come and how the…
Why would they be making lots of money when their business is tanking? Their reservations have more than halved, so that's a huge drop in revenue without much if a drop in costs (unless they fire half their workforce and walk away from half of their office leases).
Re: Airbnb Racks Up Hundreds of Millions in Losses Due to Coronavirus
#26It's kind of frightening to think of the broader economic impact it would have on the whole real estate market if Airbnb went belly up. Aren't there a ton of cases where people are mortgaging multiple homes and paying them off with the revenue they generate? That cash just dried up over night and there doesn't appear to be any incoming federal support. Edit: Look, I'm all for affordable housing, but when viewing this…
As someone that would like to buy a house one day, I welcome this. People owning multiple houses to rent out to vacationers that people would like to actually live in doesn't upset me at all. If people buying houses to rent on Airbnb artificially inflated the housing market, it's just a necessary correction and federal support would be a mistake.
>People owning multiple houses to rent out to vacationers that people would like to actually live in doesn't upset me at all.
If people buying houses to rent on Airbnb artificially inflated the housing market
net-net : is n't both the same?
Re: Airbnb Racks Up Hundreds of Millions in Losses Due to Coronavirus
#27Is WeWork still worth something ... guess co-working is a bum idea right now.
Re: Airbnb Racks Up Hundreds of Millions in Losses Due to Coronavirus
#28Earlier quoted context omitted.
They’re losing revenue due to the massive amount of recently cancellations.
I think the OP was asking, why is income negative on any revenue (they lost in Q3/Q4 of FY19), what are the expenses that can't be covered?
They employ a lot of people and have office space. Any big company has a large amount of fixed costs that will drag you under when income dries up.
Re: Airbnb Racks Up Hundreds of Millions in Losses Due to Coronavirus
#29It's kind of frightening to think of the broader economic impact it would have on the whole real estate market if Airbnb went belly up. Aren't there a ton of cases where people are mortgaging multiple homes and paying them off with the revenue they generate? That cash just dried up over night and there doesn't appear to be any incoming federal support. Edit: Look, I'm all for affordable housing, but when viewing this…
> It's kind of frightening to think of the broader economic impact it would have on the whole real estate market if Airbnb went belly up.
Oh I (living in Munich) hope for AirBnB going belly up. This will free a LOT of apartments back to normal rental markets. The rental markets won't be "hit" at all, the landlords will only lose the difference between "30 days of rent at AirBnB prices" and "30 days of rent at market value".
The winners will be those priced of their own home cities by hipsters and the neighbors of current AirBnBs who don't have to suffer from people running, essentially, illegal hotels in their houses - with people abusing apartments for sex orgies/porn sets, mass parties, or simply losing their keys and mashing on the doorbells.
Re: Airbnb Racks Up Hundreds of Millions in Losses Due to Coronavirus
#30It's kind of frightening to think of the broader economic impact it would have on the whole real estate market if Airbnb went belly up. Aren't there a ton of cases where people are mortgaging multiple homes and paying them off with the revenue they generate? That cash just dried up over night and there doesn't appear to be any incoming federal support. Edit: Look, I'm all for affordable housing, but when viewing this…
Airbnb and VRBO have similar revenues (~2.6 billion). So im not sure the hosts will be out of options, but you aren't wrong that a ton of mortgages could be foreclosed due to the lack of revenue for hosts for the foreseeable future