Airbnb Inc. delivered an upbeat forecast for the second quarter as the company sees a recovery in the travel sector.
The home-sharing platform expected revenue to be between $2.03 billion and $2.13 billion. This projection surpassed analysts’ average estimate of $1.96 billion. Remarkably, the low end of its range would represent a growth of 52.00% year-over-year.
This rosy outlook came as the San Francisco-based firm hit record bookings. Airbnb reported that reservations for lodging and travel experiences topped 102.00 million in the first three months of this year. The figure also outpaced the analysts’ consensus of 100.87 million.
Remarkably, travellers became increasingly confident in booking trips further in advance. At the end of April, the firm had 30.00% more nights booked for the summer travel season.
Then, the firm also reported that long-term stays of 28 days remained its fastest-growing category by trip length. Subsequently, they accounted for 21.00% of gross nights booked in the first quarter.
The business also signalled vital signs that travellers return to cities. For instance, gross nights booked in high-density urban areas jumped 80.00% from a year ago.
Additionally, Q1 gross booking value posted at $17.20 billion, exceeding Wall Street’s expectation of $16.54 billion. This key metric also represented an annual increase of 67.00%.
Consequently, average daily rates edged up 5.00% from a year ago to $168.00 in the quarter. However, the company anticipates ADR to be flat in the second quarter on a year-over-year basis. The company explained that stable rates in Q2 2022 suggest a good indicator of growth.
Moreover, Airbnb has benefited from the remote work shift during the Covid-19 pandemic. Eventually, work-from-anywhere policies emerged and still take place today.
Airbnb shares soar on rosy forecast
Airbnb stock price climbed 4.55% or 6.60 points to $151.60 on Wednesday’s pre-market after delivering a rosy projection. The firm said the gains in its business came despite the prevalent macroeconomic headwinds.
The booking platform also gave an update on its humanitarian efforts in Ukraine. At the onset of the crisis, it offered free, temporary housing for up to 100,000 refugees fleeing the war.
At present, more than 14,000 people have received temporary accommodations in Europe. Furthermore, the company noted that more than 34,000 people have signed up to offer homes to affected Ukrainians.
The business also waived guest and host fees after people began booking listings in Kyiv with no intention to stay.
Airbnb has found traction across the globe, but it still faces regulatory challenges in several jurisdictions.
Last month, the European Union ruled that the firm must share booking data with regional tax authorities in Brussels.