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Airbnb revenue surges as international travel recovers

Airbnb said an increasing number of travelers are seeking vacations in foreign cities. Airbnb posted its first full-year profit thanks to higher prices and a recovery in global travel.

Cross-border travel increased by 49% in the fourth quarter of 2022 compared to the same period last year, and stays in “high-density urban areas” increased by 22% compared to the same period in 2021, according to the company.

Outbound travel from the Asia-Pacific region showed the strongest growth globally as China lifted Covid-19 travel restrictions, the company said. The number of nights booked by travelers from the region increased by 40% in the final quarter of 2022 compared to the same period in 2021.

“China’s recent lifting of travel restrictions is an encouraging sign that the region continues to recover,” co-founder and CEO Brian Chesky said in a letter to shareholders. I think so,” he said.

For the first time since the pandemic began, total bookings in urban areas accounted for more than half of all bookings on the platform.

According to FactSet, the two-year-old public accommodation company posted revenue of $1.9 billion in the final quarter of 2022, up 24% year-on-year and just short of analyst estimates of $1.86 billion. surpassed.

Full-year net income was $1.9 billion and 2021 full-year loss was $353 million.

Wall Street had expected gross bookings (the sum of all bookings) to rise slightly, but it grew 20% from 2021 to $13.5 billion. Analyst estimate of 89.7mn.

Shares rose about 11% in after-hours trading on Tuesday.

Airbnb forecasts “continued strong demand” this quarter, saying Europeans are booking earlier than in 2022. The company expects earnings for the quarter to be between $1.75 billion and $1.82 billion, beating Wall Street’s expectations.

“Consumer confidence in travel remains high,” writes Chesky. “We are particularly encouraged by our European guests who booked summer travel earlier this year, the increased market share we are seeing in Latin America, and the continued recovery in Asia Pacific.”

Average prices continued to be significantly higher than pre-pandemic. The company’s “average rate per day” has fallen by 1% year-over-year, but consumers haven’t felt the benefits. Excluding the impact of foreign exchange, ADR was $153, up 5% year-over-year. His ADR is up 35% when compared to pre-pandemic prices in Q4 2019.

Airbnb said it expects these rates to drop this quarter due to more short and cheaper stays, as well as the introduction of discounts and pricing tools.

The company said it has significantly improved its supply of available rooms, addressed key concerns of investors, and added 900,000 active listings year-over-year.

This will bring the total number of listings available on Airbnb up 16% in 2021 to a record 6.6 million, the company said. This figure does not include listings lost when Airbnb shuts down his China-based business in 2022.

https://www.ft.com/content/dde65da6-7da2-45fb-935c-c13b339ce45e Airbnb revenue surges as international travel recovers

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