Airbnb Soars Beyond the Shadow of COVID-19... 1Q Revenue Surges 70%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Global accommodation sharing company Airbnb is completely shaking off the shadow of COVID-19 and soaring high. Its revenue in the first quarter (January to March) surged by 70% compared to a year ago, and with a significant increase in bookings for this summer travel season, it is expected to achieve strong performance in the second quarter as well.

According to CNBC and other media on the 3rd (local time), Airbnb announced in its earnings report that it recorded $1.51 billion (approximately 1.9 trillion KRW) in revenue and a net loss of $19 million in the first quarter. First-quarter revenue increased by 70% compared to the same period last year, and the net loss significantly decreased from $1.2 billion in the first quarter of last year.

Bookings also reached 102.1 million during the first quarter, surpassing pre-COVID-19 levels. The Gross Booking Value (GBV), which is directly linked to Airbnb’s performance, was $17.2 billion in the first quarter, up 67% year-over-year and exceeding the market forecast of $16.54 billion. The average daily rate in the first quarter was $168, a 5% increase compared to a year ago.

Airbnb stated that as of the end of last month, bookings for the summer travel season are about 30% higher than the same period in 2019, and it expects growth to continue in the second quarter. Based on this, Airbnb projects second-quarter (April to June) revenue to be between $2.03 billion and $2.13 billion, significantly surpassing the market forecast of $1.96 billion. However, Airbnb mentioned potential risks to future performance, including the possibility of a COVID-19 resurgence, decreased travel demand due to the Ukraine war, and the impact of rising consumer prices.

Since COVID-19, Airbnb has been focusing on attracting long-term customers who stay for more than one month. It reported that long-term stays of 28 days or more accounted for 21% of total stays in the first quarter. Considering this, Airbnb announced on the 28th of last month that employees would be allowed to work remotely from anywhere for up to three months (90 days) per year.

Brian Chesky, Airbnb’s CEO, said during the earnings conference call, “Most companies are not requiring employees to return to the office after COVID-19,” adding, “We expect to see sustained growth in the long-term stay segment over the coming years.”

Following the strong earnings announcement, Airbnb’s stock price rose nearly 6% in after-hours trading on the same day.