Airbnb IPO suspended due to the Covid-19 pandemic

Airbnb recently launched its initial public offering (IPO) and plans to become a public entity by the end of the year. In these days, the Airbnb IPO has become part of the long list of global projects that have been suspended due to the global COVID-19 epidemic.

Airbnb is certainly not the only company affected by Covid-19

The company has decided to adhere to these extraordinary measures until the virus is contained and the situation returns to control. Company sources revealed that Airbnb's IPO could no longer hold up as market events do not favor such a plan.

The spokesman also said that Airbnb will now proceed gradually, abandoning the initial hurry to turn into a public body. The outbreak of the coronavirus has affected other companies and industries globally, nationally and locally, in addition to Airbnb.

All of these are suffering losses, both financially and operationally, as people are adjusting to travel restrictions in different countries.

The suspension of Airbnb's IPO aggravates the company's losses

Airbnb in its recent analytical data and quotes, has revealed that the company has undergone a downward turn in terms of revenue and reservations in Europe in recent times. The number of people who sponsor the travel and tourism industry has been drastically reduced.

The reservations made on the Airbnb platform have also been reduced in various European cities such as Milan, Rome, etc. Beijing, one of the cities where Airbnb has a strong presence, has seen about 96% of reservations canceled due to its proximity to Wuhan, the city that recorded the first coronavirus case. Airbnb bookings dropped from over 40,000 in January to 1,655 in March.

Travel restrictions are being applied worldwide

The government's travel ban and restrictions have adversely affected the company along with airlines, hotels and travel agents. U.S. President Donald Trump has also suspended all passenger transportation from America to Europe for the next 30 days, accusing European governments of not being able to contain the virus.

The Airbnb market is expected to collapse further as company data reveal that some cities where reservations are generally high have been hit hard.

The fate of Airbnb in the United States

The suspension of Airbnb's IPO adds more trouble to what the company is already undergoing in the United States and other countries. Kameron Bain, director of Airbnb, said that the cancellation of many major events that should have been held around the world.

This occurred especially in major cities in the United States, such as San Francisco and Chicago, would have strongly influenced them since public events in these areas attract tourists from all over the world.

And you? How are you fighting the Covid-19 pandemic? Are you barricaded at home, have you canceled your reservations or are you pretending nothing? Write us what you think in the comments below!