Shares in Airbnb more than doubled on the IOC sponsor's first day of market trading ©Getty Images

Timing is everything in sport and financial markets – and, boy, does International Olympic Committee (IOC) global sponsor Airbnb appear to have got its timing right on when to float on the stock market.

Having been sold to investors at $68 (£51/€55) on Wednesday (December 9), shares in the San Francisco-based short-term room-rental service more than doubled on their first day of trading yesterday.

The shares eventually closed at $144.71 (£108.53/€117.22), as investors seemingly dashed to take a punt on the recovery of the international travel sector, one of the industries hardest hit by the COVID-19 pandemic.

It all makes for a stark contrast with the situation in May, when the company, which became an IOC sponsor last year, decided to cut 25 per cent of its workforce.

Airbnb co-founder and chief executive Brian Chesky at that time described the pandemic as "the most harrowing crisis of our lifetime", while also asserting that "we know Airbnb’s business will fully recover."

Investors now appear to have come around to the same conclusion.

Airbnb co-founder Brian Chesky retained confidence in the company bouncing back, even during the most difficult days during the coronavirus pandemic ©Getty Images
Airbnb co-founder Brian Chesky retained confidence in the company bouncing back, even during the most difficult days during the coronavirus pandemic ©Getty Images

While events, sports and non-sports-related, continue to be called off well into next year, the recent positive vaccine developments have boosted confidence that people’s appetite for travel is poised to return sooner rather than later.

Indeed, a bulky 350-page-plus prospectus published ahead of the market debut disclosed that the business made money in the third quarter, posting a pre-tax profit of $307 million (£227 million/€254.8 million), compared with losses of $357 million (£270.7 million/€296.3 million) and $639.4 million (£484.9 million/€530.7 million) in the first and second quarters respectively.

In April, the group responded to travel restrictions by launching a new online platform for its Olympian Experiences initiative.

This offers special experiences involving athletes to Airbnb customers.

The five cities scheduled to host the Games during Airbnb’s sponsorship period – Tokyo, Beijing, Paris, Milan and Los Angeles - are among the group’s biggest markets for private accommodation rentals worldwide.

The business’s expansion in recent years has not, however, been without controversy, particularly in Paris, whose Mayor, Anne Hidalgo, has warned the IOC of the "risks" of its Airbnb deal.

Hoteliers, plainly, tend not to relish the innovative competition that businesses like Airbnb represent, while residents and local politicians are inclined to fret about the possible inflationary impact on rental markets and a perceived risk that popular tourist zones might become largely denuded of long-term residents.