Streamlined business and a surge in domestic bookings may help Airbnb survive, says data and analytics company, GlobalData, in a statement.

The company says Airbnb could still be successful if it scaled down in the short- to medium-term and operated in a more efficient manner.

Ralph Hollister, Travel Analyst at GlobalData, said: “Airbnb may be turning a corner. It is terminating the contracts of 1 900 of its 7 500 staff members, as well as scaling back its spending in growth areas such as luxury homes and traditional hotels. These actions are necessary as the company has no choice but to streamline its business in order to survive.”

There has been a recent surge in bookings in Europe as restrictions have been relaxed. The accommodation platform recently said domestic bookings in Denmark were at about 90% of April 2019 levels, and in The Netherlands around 80%, according to GlobalData.

Hollister said increased bookings in Europe were a beacon of hope for Airbnb and advised it to focus on maximising domestic bookings. “It is likely that a combination of a lack of consumer confidence and increased fear regarding where the virus may still be, will push travellers toward domestic trips.”