Airbnb experiences hit the speed bump

Good morning from Skift. The date is Friday April 14th. Here’s what you need to know about the travel business today.

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Episode notes

Airbnb has paused new experiences or tours and activities without saying when they will resume, Travel Experience reporter Selene Brophy reports.

An Airbnb spokesperson said it is stopping new experience offerings to focus on other aspects of its business. Brophy reports that the short-term rental aggregator has resumed its practices in 2020 after halting it at the start of the pandemic. Airbnb CEO Brian Chesky said the company is for people who are working from home and others. In its initial public filing published in November 2020, Airbnb valued its total accessible market at around $1.4 trillion.

Next, Delta Air Lines acknowledged industry-wide concerns about reduced travel demand and possibly a weak summer season. However, the company does not share these concerns, reports Edward Russell, editor of Skift Publishing, Earle’s Weekly.

Russell wrote that Wall Street analysts have been concerned about the demand for domestic travel in recent weeks, a slowdown in new registrations. But Delta President Glenn Hauenstein said during a first-quarter earnings call on Thursday that the data cited by analysts reflects a change in booking patterns, not a slowdown in demand. Russell explained that many travelers are booking trips earlier than usual, confident that they can change their flights later if necessary.

Delta reported an operating profit of nearly $550 million for the first quarter. The company generated nearly $13 billion in revenue during the period.

Finally, travel entrepreneurs often face challenges in securing funding for their startups. But those barriers are compounded for black startup founders seeking capital to bolster Africa’s tourism offerings, Travel Experience Reporter Brophy reports.

Brophy cited Rwandan-Canadian Charles Shiman, founder of Africa-focused online travel marketplace Zaniheza, as one executive to raise funds. Despite receiving a few grants, Shima admits that getting funding for his travel startup concept was his biggest challenge. Zaniheza says he aims to create a travel experience that encourages travelers to visit African cities rather than exploring the continent’s popular safari destinations.

Although Brophy predicts that African startups will receive a continental record $5 billion in funding by 2022, the majority of investments have gone into fintech, energy and agriculture startups. A technology executive in South Africa says the continent’s travel sector does not have unicorns, adding that officials across Africa need to get the basics of travel and tourism right.