AIRBNB BECOMES PROFITABLE DUE TO TOURISM REBOUND


Airbnb Becomes Profitable Due to Tourism Rebound

The travel and hospitality industry has been hard hit by the ongoing pandemic but certain sectors such as Airbnb have experienced an impressive rebound. Airbnb reported a net income of $219 million in the first quarter of 2021 and is now operating as a profitable business.

Positive Impact of Rebounding Tourism on Airbnb

The global lockdowns imposed due to the pandemic had a major impact on the travel industry, with Airbnb being no exception. However, the chain was able to make a quick turnaround due to certain factors such as the following:

  • Increase in Domestic Travel: With international borders being closed, people have had to settle for domestic holidays. This has increased the demand for vacation rentals in many countries, resulting in a surge in Airbnb rentals.
  • Flexible Cancellation Policies: Due to the pandemic, Airbnb offered customers flexible cancellation policies which provided them with an extra layer of security. This made the customers more comfortable in booking Airbnb rentals.
  • Rise in Investment: Airbnb has been the beneficiary of a large influx of investment from different quarters. This has enabled it to become a profitable business during the pandemic.
  • New Initiatives: Airbnb also launched new initiatives such as remote work hubs, providing people with the opportunity to work from different cities. This has enabled them to make the most of their holidays, making Airbnb an attractive proposition.

Future Outlook of Airbnb

The travel industry is slowly recovering from the effects of the pandemic, with Airbnb at the forefront of the revival. The chain is expecting to make even more profits in the coming months as more people begin to travel internationally.

Airbnb is also planning new initiatives such as better services and infrastructure to cater to the needs of its customers. With such plans in place, Airbnb is sure to continue its successful journey in the near future.

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