Airbnb Faces $400m in Lost Bookings Due to Crackdown
Research highlights cost of enforcing annual limit of 90 nights on hosts.
By: Leslie Hook in San Francisco for Financial Times
Airbnb will miss out on more than $400m worth of bookings in London this year as it starts enforcing its new 90-night limit for hosts there, according to new analysis. The research, which draws on data from AllTheRooms, an accommodation search engine, and analysis by the FT, underscores the growing cost of regulatory compliance for one of Silicon Valley’s most high-profile start-ups.
In London, nearly half of the nights booked on Airbnb in 2016 would be jeopardised by the 90-day limit, according to data collected by AllTheRooms. That shift could reduce Airbnb’s bookings by a third. Some travellers will just shift to other Airbnb rooms instead, but most will shift off the platform altogether, it is estimated.
AllTheRooms estimates that Airbnb’s London bookings were previously on track to rise from about $600m in 2016 to $1.24bn in 2017. However, as the new rule goes into effect, next year’s bookings will instead be around $812m, the group estimates.
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