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Airbnb CEO refutes recent AirDNA data that suggests high churn

By:
on Nov 17, 2022
Updated: Nov 21, 2022
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  • CEO Brian Chesky says the rate of churn at Airbnb is really stable.
  • Airbnb Inc is focused on affordability to weather a recession.
  • The vacation rental company is down 45% versus its YTD high.

This article has been updated to include commentary from AirDNA

Airbnb Inc (NASDAQ: ABNB) CEO – Brian Chesky this morning on CNBC’s “TechCheck” denied the recent data from AirDNA that rate of churn at his vacation rental company is at its highest in years.

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Madeleine Parkin, a PR representative for AirDNA, however, told Invezz that CNBC took the aforementioned data out of context, and said:

We want to clarify that churn has been elevated due to Airbnb leaving China on 30th July this year, taking some 500,000 properties offline. As this is a three-month moving average, the effects of this removal will affect churn figures for August, September and October. Excluding China from the equation, there was a net gain of 80,000 listings globally in September. As Brian Chesky mentions, host numbers (rather than listings) remain stable, though they are of course also affected by Airbnb’s departure from China.

Chief Executive says churn is stable

The data analytics firm also said in its report that Airbnb has faced a “net loss in listings” for the first time since the start of the COVID pandemic.

On the contrary, though, Chesky said his Nasdaq-listed firm was actually committed to bringing more hosts to the platform to meet the persistently strong demand.

Churn is really stable. Hosts are making more money than ever on Airbnb. I haven’t seen the report you’re referring to. But we have the best data about Airbnb on our platform.

Offerings like Airbnb Setup and AirCover, he added, are making it all the more enticing for hosts to join Airbnb.

Airbnb is positioning itself for a recession

Earlier this month, the hospitality services company reported a record third quarter on strong travel demand.

According to CEO Brian Chesky, Airbnb Inc is committed to “affordability” to retain that strength even through the impending recession.

We’re ranking higher the very best value homes on Airbnb. We’re building more tools for hosts to set discounts. We started as affordable alternative to hotels. So, that’s what we’re focused on.

Interestingly, the Chief Executive himself has listed one of his home bedrooms on Airbnb for “zero” dollars. Wall Street recommends that you buy Airbnb stock as it has upside to $130 on average – a 30% return from here.