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Short-term rental platform stocks airbnb (NASDAQ:ABNB) I popped it today. Stock prices rose modestly until around 2:00 pm ET, but then the pop became more pronounced. The timing of this pop coincides with reports of new pricing being rolled out by the company. And that’s probably why Airbnb stock was up about 6% as of 3 p.m. ET.
What are the additional charges for Airbnb?
According to a report from Bloomberg, Airbnb plans to charge guests a new service fee starting April 1st. This amounts to an additional charge of approximately 2% for cross-border bookings. This means that if your listing’s currency is different from the currency your traveler uses, a fee will apply.
Airbnb says the international market is an opportunity for growth and an area of focus. But the company’s international business may already be bigger than many investors realize. It doesn’t happen every quarter.However, in 2022, nearly 54% of Airbnb’s revenue came from listings outside the US.
Charging a 2% surcharge isn’t a big deal in itself, but for a multi-billion dollar global business like Airbnb, it can add up to a lot of money.
global push
In its Q3 2023 report, Airbnb’s management spent a lot of time highlighting international growth. Specifically, cross-border bookings increased 17% year over year in the third quarter. The company hasn’t disclosed how much this will be, but it’s worth pointing out that it will receive a 2% surcharge starting in April.
Within the next month, Airbnb is expected to report financial results for the fourth quarter of 2023. We expect management to explain in more detail why they made this change. However, given that this is a focus area, we also expect to continue to report cross-border growth.
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Jon Quast has a position at Airbnb. The Motley Fool has a position in and recommends Airbnb. The Motley Fool has a disclosure policy.
The post Why Airbnb Stock Suddenly Soared Surprisingly Today was originally published by The Motley Fool
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