Well friends, Airbnb is about to change up the game again. The company that redefined how we crash in someone else’s place while on vacation is now making a bigger bet on long-term rentals. Yep, that’s right—you commitment issue people could all be on the verge of living your best Airbnb lives for months at a time. Who needs to buy a home, anyway, amirite? 

(Source: Giphy) 

In short, shares are popping north of 10% this week after Airbnb CEO Brian Chesky stated the company’s throwing its weight behind stays of 28 days or longer. Currently, these extended stays make up 17-18% of Airbnb's business, up from 13-14% before the world went to sh^t in 2020.

But according to Chesky, it’s not enough. He’s got his eyes on the long-haul: “Stays of 30 to 90 days, monthly stays, the seasonal stays, I think that's a huge growth opportunity.” Translation: Airbnb’s about to milk this cash cow for all it’s worth.

(Source: Reuters) 

Now with that said, it’s not like Airbnb woke up one morning and said, “You know what would be fun? Long-term rentals.” (although they could’ve, I mean FedEx was the product of one friggin hand of blackjack). However, the real push comes as some of the world’s hottest tourist traps—cough Europe cough—are cracking down on short-term rentals. 

(Soure: Bloomberg) 

Cities like Barcelona and Athens are throwing up middle fingers to Airbnb-style stays to combat housing shortages and keep rents in check for locals. That’s a problem. And when you’re Airbnb and your bread and butter is short stays, you’ve got to find new ways to keep the dough rolling in. Which is why, long term booking is looking like the gift that keeps on giving. Aka, fewer guest turnovers, less hassle for hosts, and more $$$ flowing into Airbnb’s pockets. 

(Source: Giphy) 

But, but, but… if you thought Airbnb was just going to stop at longer stays, you haven’t been paying attention. Chesky isn’t looking past the little guys on this either. According to the man himself, Airbnb is cooking up a way to match wannabe hosts (who don’t own property and still live in moms basement) with homeowners who can’t be bothered to rent out their place themselves. So essentially it’s like playing matchmaker… but actually making money doing so. 

Now, on the other hand, let’s not forget this is all coming to a head after Airbnb has been through the gauntlet of despair lately. For instance, the company posted a $292 million net loss in Q2 of this year. And while revenue did shoot up 58% to $2.1 billion, investors weren’t impressed. This has resulted in Airbnb’s shares falling 33% (from their peak of $168) in 2024, with the market giving Chesky & Co. the side-eye ever since.

(Source: Aol. Insider) 

The bright side? Airbnb’s still got over 7 million listings worldwide, from chic lofts to those tiny houses you see all over Instagram. And they’re forecasting $8.1 billion to $8.3 billion in revenue for 2024. Which is not bad at all considering that’s could end up being a nice 16-18% bump year-over-year. 

However, while the news has definitely sparked some bullish optimism in this weeks price action, long-term stays aren’t exactly new for Airbnb. Professional property managers have been listing extended rentals on the site for a minute now, and the pandemic pushed everyone to book longer, more spacious stays anyway (thanks, remote work). But Chesky’s latest comments show that Airbnb’s ready to go all-in on this market.

(Source: Giphy) 

So clearly the man is ready to capitalize on these money moves to  keep Airbnb growing after its not so great past few years. As we all know, since going public in 2020 (talk about horrific timing), the company’s had to dodge more curveballs imaginable.

Yet, even with all the turbulence that would have most CEOs hiding under a shell, Airbnb is still sitting pretty with $1.9 billion in net income for the first half of this year. Meaning, if they can tap into this demand for longer stays and sponsored listings, it could be the boost they need to get back on track. Especially since we live in a world (like mentioned above) where commitment issues are paramount… you know, like living in someone else’s house for three months instead of signing a death wish on a mortgage. 

In the end, keep an eye out on Airbnb shares as they are definitely flying high this Friday. And as always, stay safe and stay frosty, friends! Until next time…

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Stocks.News does not hold any positions mentioned in the article.