Airbnb Revenue Soars 70% With Strong Prospects Ahead — Should You Invest in the Travel Juggernaut Post-Pandemic?
“Despite the ongoing pandemic, the war in Ukraine, and macroeconomic headwinds,” Airbnb reported first quarter earnings of $1.5 billion on May 4 — a 70% increase than pre-pandemic, also exceeding pre-pandemic Q1 2019 revenue by 80%.
The company delivered a strong growth outlook for the second quarter, as well, increasing stock 7.7% on May 4. During the first quarter, Airbnb exceeded 100 million nights and experiences booked, its largest quarterly number ever, according to a letter to shareholders.
“Two years since the pandemic began, a new world of travel has emerged. Millions of people are now more flexible about where they live and work. As a result, they’re spreading out to thousands of towns and cities, staying for weeks, months, or even entire seasons at a time,” the letter continued. “Through our adaptability and relentless innovation, we’ve been able to quickly respond to this changing world of travel. Now, two years into the pandemic, Airbnb is substantially stronger than ever before.”
Long-term stays — 28 days or more — remained Airbnb’s fastest growing category by trip length compared to 2019, as the way people travel and live continues to change. This accounted for 21% of nights booked in Q1 2022 — up from 13% in the first quarter of 2019. The number of long-term stays were also at an all-time high in the quarter.
The company explained it is looking forward to another strong summer travel season and expects to deliver Q2 2022 revenue between $2.03 billion and $2.13 billion.
As for an update on its efforts in Ukraine, the company stated “in March, a collective effort by our guests demonstrated the power of our community. Airbnb guests began booking homes in Ukraine without any intention of staying in them as a way to support Ukrainian Hosts. Guests were able to choose the Hosts they wanted to support and in certain cases, communicate with the Hosts. We waived all guest and Host fees on these bookings to ensure that all earnings went directly to Hosts. For the quarter ended March 31, 2022, approximately 600,000 nights were booked in Ukraine.”
Last week, Airbnb co-founder and CEO Brian Chesky said on Twitter that employees will now have the possibility to “live and work anywhere.” The move comes against the backdrop of a tight labor market and employers having to find creative ways to attract and retain employees.
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