Airbnb (NASDAQ:ABNB) has spiked in recent years. It’s grown to the point where some believe it may start seriously taking market share from hotels thanks to its variety of hosts and sheer availability. Yet, some issues have come with Airbnb’s growth, and Airbnb recently removed nearly 4,000 account holders over policy violations. That includes issues related to Airbnb’s nondiscrimination policy.
While this may sound like a potential PR nightmare, it’s actually a significant improvement. The nearly 4,000 accounts removed this year represent a little over a 20% decline from last year. That year, Airbnb removed 5,100 accounts. Yet it’s still clear that Airbnb is actively moving to prevent such matters from being a factor at all.
To that end, Airbnb stepped up operations designed to prevent discrimination in bookings. It recently augmented access to its “instant book” feature. That allows customers to book a listing without requiring the host’s approval. Airbnb previously expanded the feature in November and now expanded it further. More users will be able to make connections, which could translate into higher operating cash flows for ABNB.
The move was sufficient to kick Airbnb’s share price up a notch. Moreover, the analyst community is solidly in favor as well. Airbnb currently holds a “Moderate Buy” consensus rating with 36.89% upside potential, thanks to its average price target of $128.36.
