Shares in Airbnb (NASDAQ:ABNB) fell nearly 7% after the company said it will be permanently banning parties and events at the properties listed on its platform.
The move had first been introduced as a temporary measure during the pandemic but has “proved effective,” according to a statement.
Airbnb (NASDAQ:ABNB) said it was concerned by guests who had used the rented properties for parties during COVID, largely because of the “disruptive nature of unauthorised parties and the risk of such gatherings spreading the virus.”
Since then, the ‘party ban’ has become much more than a public health measure, it said, adding it has been well received by its host community, with positive feedback from community leaders and elected officials.
In its statement, Airbnb (NASDAQ:ABNB) states it believes there is a direct correlation between the implementation of its policy in August 2020 and a 44% year-over-year drop in the rate of party reports.
Additionally, it said it will be removing the limit on people allowed to be accommodated in one listing at any time, which was a 16-person limit imposed due to COVID concerns.
Violation of the party bans could lead to a suspension of the user’s account or a full-time ban among other things.
During 2021, 6,600 guests were suspended for attempts to violate the rules.