Airbnb has been the rare success story of a travel company during the pandemic. It shows no signs of slowing down. Remote work trends, pent-up travel demand and aggressive pricing are helping to keep the short-term rental platform high.
vacation rental business Airbnb Inc. Projected second-quarter revenue topped market estimates on Tuesday, betting on pent-up demand to drive a strong summer travel season after COVID-19 restrictions were approved globally.
The San Francisco-based company expects revenue between $2.03 billion and $2.13 billion, versus an average analyst expectation of $1.96 billion, according to Refinitiv data.
Shares of the company rose more than 3% in extended trading.
The rise of hybrid working has in recent months encouraged people to book longer and more frequent stays in destinations away from cities, giving renters a boost.
Airbnb, which made a slew of changes to its service last year to take advantage of the post-pandemic travel rebound, said it saw the strongest growth in gross room nights booked in non-urban areas in the first three months of 2022.
“In the first quarter, long stays of 28 days or more remained our fastest growing category in terms of travel duration compared to 2019,” the company said in a statement.
Gross room nights booked in urban destinations also recorded strong growth and surpassed pre-pandemic levels thanks to the return of international travel, while room nights and experiences bookings – a key indicator of platform performance – surpassed 100 million for the first time.
This, combined with a 37% increase in average daily rates from 2019 levels, increased Airbnb’s revenue by 70% over the previous year.
Online travel websites Expedia Group Inc and Trivago NV also posted higher quarterly revenue on Monday as demand returned to pre-pandemic levels.
Airbnb reported a net loss of 3 cents per share, versus an analyst estimate of a loss of 29 cents per share.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Aditya Soni)