Airbnb (NASDAQ: ABNB) on Tuesday announced that it will be officially codifying its ban on parties and events in its listings globally, making the ban part of its policy.
The party ban was initially introduced as a temporary measure in August 2020 at the height of the Covid-19 pandemic. It was instated to curb “both the disruptive nature of unauthorized parties and the risk of such gatherings spreading the virus.”
But in the past two years, the San Francisco-based company found that the party ban was becoming something more, “it developed into a bedrock community policy to support our Hosts and their neighbors,” Airbnb said in a blog post.
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The now permanent ban will continue to prohibit disruptive parties and events, which the company defines as gatherings, particularly open-invite ones, that attract complaints from neighbors.
But the updated policy also removes the 16-person occupancy cap. The temporary ban introduced in 2020 included a 16-person occupancy cap, mostly as a health safety protocol during the pandemic. The removal of the occupancy cap will apply to listings that can house over 16 people comfortably and safely, while still complying with Airbnb’s ban on disruptive parties.
Airbnb’s revenue grew by 70% year-on-year in May 2022, with US$1.5 billion in the first quarter of the year. The company expects more revenue growth in the second quarter and sees itself bringing in US$2.03 to US$2.13 billion.
Airbnb last traded at US$93.71 on the Nasdaq.
Information for this briefing was found via Airbnb, Reuters and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
