Yesterday in stock Airbnb reported its biggest drop shortly after it expressed reservations in its earnings announcement, suggesting that rising prices and a bleak economic outlook were starting to take a toll on consumer appetite for travel. Its shares fell 14% at the open on Wednesday. This is the biggest drop in the stock since the company went public in December 2020. San Francisco-based Airbnb expects $2.35 billion to $2.45 billion in revenue for the quarter through June, up 12-16% year-over-year. previously.

This is the company’s slowest revenue growth rate. Analysts, for their part, predict they will rise to $2.4 billion, according to a Bloomberg survey, while Airbnb estimates operating EBITDA will remain at the same level as in the second quarter of the previous year. In recent years, Airbnb has benefited from changes in lifestyle and work due to the pandemic. However, the appetite for travel has begun to wane and some consumers have slashed their travel budgets amid an extremely persistent inflation and unstable economy.

The company estimates that the number of overnight stays, as well as the number of activities provided through its platform, will not be favorable compared to a year earlier, when there was an increase in demand as a result of the Omicron Mutation transfer. Therefore, the company estimates that the number of stays and experiences offered through its platform on an annual basis will increase in the second quarter, but at a slower pace compared to the revenue growth rate over the same period.

Of course, in the first quarter, its revenue grew by 20% to $1.82 billion, which means they reached the highest figures for this period. This is in line with analysts’ estimate of $1.79 billion in revenue. Adjusted earnings before interest, taxes, depreciation and amortization were $262 million, beating Wall Street’s estimates.

Earnings per share were 18 cents per share, while analysts had expected 17 cents. Companies from airlines to hotels have raised prices as consumers have so far shown willingness to spend. In the first three months of 2023, spending for personal consumption increased by 3.7%, the biggest increase in the last two years. However, the world began to put a limit on this. Bank collapses, rising interest rates and rising mortgage payments, especially in high-yield industries like technology, could lead tourists to cut back on spending.

Airbnb’s solid financial results are also in line with those of companies in the sector. Booking and Expedia recorded double-digit growth in bookings in the first quarter of 2023. At the same time, analysts at Atlantic Equities note that the slowdown in Airbnb’s growth is expected to increase competition from the Booking platform.

In a conference call with investors, Airbnb CEO Brian Chesky stressed that affordability is a key priority for the company, remaining optimistic that a significant number of apartments on the platform will help ease pricing pressure.