Business

Airbnb bets on summer of travel to drive revenue growth

(Reuters) -Trip rental agency Airbnb Inc projected second-quarter income above market estimates on Tuesday, betting on pent-up demand to drive a summer season of robust journey after COVID-19 curbs have been eased globally.

FILE PHOTO: Airbnb brand is seen displayed on this illustration taken, Might 3, 2022. REUTERS/Dado Ruvic/Illustration

The San Francisco-based agency expects income between $2.03 billion and $2.13 billion, in contrast with the typical analyst expectation of $1.96 billion, based on Refinitiv information.

The rise of hybrid working has in latest months inspired folks to ebook longer and extra frequent stays in locations away from cities, giving a lift to rental suppliers.

“We’re going to proceed to see continued and sustained development for stays of longer than a month and stays of longer than every week,” Chief Government Brian Chesky stated on a name with analysts.

Shares of the corporate rose greater than 4% in prolonged buying and selling.

Airbnb, which made a slew of adjustments to its service final yr to reap the benefits of the post-pandemic journey surge, stated it posted the strongest development in gross nights booked in non-urban areas within the first three months of 2022.

Gross booked nights in city locations additionally rose sharply to above pre-pandemic ranges, whereas the variety of nights and experiences booked – a key metric of the platform’s efficiency – exceeded 100 million for the primary time.

That together with a 37% surge in common each day charges over 2019 ranges drove Airbnb’s income 70% larger from a yr earlier. The corporate reported a web lack of 3 cents per share which was a lot smaller than analysts’ estimates.

“Airbnb exceeded expectations on nearly each line merchandise, with robust bookings developments for the summer season and steadiness of the yr,” Baird Fairness Analysis analyst Colin Sebastian stated.

“Journey restoration in city areas, cross-border and APAC (Asia-Pacific) ought to gas extra bookings development within the coming quarters/years,” he added.

Reporting by Aishwarya Nair in Bengaluru; Modifying by Aditya Soni

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