Airbnb, the home-rental platform, saw its stock plummet after revealing that its pandemic-time partying ban would be made permanent.
The company said limit the so-called party houseFirst introduced in 2020 as the coronavirus crisis was accelerating, will remain in place after reports of unauthorized gatherings plummet.
It reports a 44% year-on-year decline amid efforts to stop persistent offenders or properties that are creating nuisance.
In the UK, the number of complaints dropped by 63%.
However, more than 6,600 guests and several hosts have been suspended globally in 2021 for attempting to violate the ban on partying, Airbnb said.
It has loosened one rule; The 16-person limit at one facility, the company said, will allow larger properties on the platform to reach full capacity.
Airbnb admits cracking down on its bad behavior will remain a work in progress.
“This is an issue where I don’t know if I’d say there’s a finish line,” added Ben Breit, a company spokesman.
Shares ended the day nearly 4% lower, falling more heavily than the broader Nasdaq index, with its update likely to be seen as a threat to revenue ahead.
