Airbnb knows it’s making too much money now

By Chris Bryant

02 Nov 2022 · 3 min read

Editor's Note

Bloomberg's Chris Bryant writes that if there’s a problem at AirBnB 'it’s that Airbnb is making too much money, not too little'.

Social media was abuzz last month with anecdotal reports from Airbnb Inc. hosts about a collapse in bookings. There was precious little sign of that in the homestay platform's Tuesday earnings report, which saw a 29% increase in quarterly revenue from the year-earlier period to $2.9 billion.

If there's a problem - and it's a nice one from shareholders' point of view - it's that Airbnb is making too much money, not too little. The company risks alienating customers by advertising a low daily rate and then tacking on exorbitant service and cleaning fees. Happily, it's promising more transparency, and that's long overdue.

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