Illustration shows Airbnb app
Airbnb app is seen on a smartphone in this illustration taken, February 27, 2022.

Airbnb Inc said on Tuesday it will make permanent its ban on parties in homes listed on its platform after seeing a sharp drop in reports of unauthorized gatherings since the prohibition was put in place in August 2020.

The company announced seeing a 44% year-after-year drop in the rate of party reports since implementing the policy.

This comes after the San Francisco-based company introduced and extended the party ban to halt the spread of COVID-19 infections. Now the company wants to make the ban permanent as the summer travel season begins.

"This is an issue where I don't know if I'd say there's a finish line," said Ben Breit, a spokesperson for the company, adding that Airbnb will keep working to address the issue.

The company said it will also remove its 16-person limit, allowing larger homes listed on the platform to be booked to full occupancy.

In 2019, Airbnb began imposing much stricter limits, starting with a global ban on so-called "party houses" or listings that create persistent neighborhood nuisance.

Airbnb has also updated its policies considering the pandemic, removing both the "event friendly" search filter and "parties and events allowed" house rules.

More than 6,600 guests and some hosts were suspended in 2021 for attempting to violate the party ban, the company said.

In May 2022, the company reported revenue was up 70% from the previous year bringing in $1.5 billion in the first quarter of 2022. The company also projected revenue to be above market estimates for the second quarter of the year, expecting to bring in between $2.03 billion and $2.13 billion.