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- Airbnb says its strong pandemic recovery may be sidetracked as vaccination rates fall off and cases of the COVID-19 Delta variant rise.
- After a strong booking season over the summer, the company is expecting a slide in coming months.
- Online travel booking services like Airbnb benefited during the pandemic, as more people were able to work remotely and travel.
- See more stories on Insider's business page.
Airbnb is expecting a hit in bookings ahead of the fall season due to concerns over the coronavirus Delta variant.
The home-share company experienced strong bookings and soaring revenue in the late-spring and summer, the company said Thursday in its latest earnings report. The travel surge came as people began vaccinating, lifting travel restrictions, and feeling more comfortable to travel.
Travel plans are changing though as cases of the COVID Delta variant begins to rise and vaccination rates continue to slow down, particularly in areas of the US.
"In the near term, we anticipate that the impact of COVID-19 and the introduction and spread of new variants of the virus, including the Delta variant, will continue to affect overall travel behavior, including how often and when guests book and cancel," the company said in its earnings letter.
Though booking numbers in the company's third quarter are expected to surpass numbers from the same time last year, it won't be enough to return to pre-pandemic levels in 2019.
"In July, we've seen some of the pullback in demand, but it's likely due to summer peak and possibly partial to the Delta variant," said Dave Stephenson, AirBnb chief financial officer. AirBnb shares fell 4% following the company's earnings call.
"The trends in our recovery continue to vary by region due to vaccination rates, COVID caseloads and associated travel restrictions, as well as pre-COVID travel patterns," added Airbnb CEO Brian Chesky, who remains positive on upcoming booking numbers.
Earlier this year, Chesky was feeling confident for a post-pandemic rebound, putting a call out for more AirBnb hosts to support a travel boom. Airbnb prices also saw an increase as Americans flocked from cities to larger temporary residences in suburban and rural areas.
The online travel booking industry saw a spike during the pandemic, especially as people found flexibility in more opportunities to travel and work remotely.
"Airbnb has benefited from our adaptable business model, which is able to meet the changing needs of our guests," said Chesky. "And as a result, Airbnb has emerged from this crisis faster than others and we're better positioned for the future of travel."
Airbnb did not provide any further comment on how the spread of the delta variant or how it could affect future booking numbers.
Axel Springer, Insider Inc.'s parent company, is an investor in Airbnb.