said on Tuesday that it expected fewer bookings and lower average daily rates in the second quarter versus a year earlier, sending shares down 11.5 per cent in after-hours trading.
People are most price sensitive in North America, especially in the United States, Airbnb CEO Brian Chesky told investors on a call.The company’s gross booking value increased 19 per cent to $20.4-billion in the first quarter from a year earlier, in line with a 19 per cent increase in nights and experiences bookings to 121 million. Average daily rates were flat year-on-year at $168.
“The company is now facing fierce competition from rivals like Booking.com and Expedia’s Vrbo so its future looks less certain,” he added. “Some of the pressures that we’re seeing there on overall revenue growth has frankly just been some of the elevated rates,” Airbnb Chief Financial Officer David Stephenson told investors.