The short-term home rental company predicted on Tuesday that second-quarter revenue would beat Wall Street expectations. He said bookings are strong for the summer and year-end holidays, and international bookings by Americans are ahead of their pre-pandemic pace.
“People are more confident booking trips further in advance, and we’re seeing strong demand for summer bookings and beyond,” CEO Brian Chesky said in a call with analysts. “We are also seeing customers returning to cities and crossing borders at pre-pandemic rates, if not higher.”
However, the price hike that has long helped Airbnb may be easing. The company said average daily rates were up only 5% from a year ago as there were more urban rentals with relatively lower prices, and rates in the second quarter will be flat by compared to a year ago. Still, Airbnb forecast second-quarter revenue of between $2.03 billion and $2.13 billion — above analysts’ forecast of $1.96 billion, according to a FactSet survey.
Chesky’s remarks echo comments from US airlines and other travel companies, which expect increased revenue this summer as people start traveling again after being locked down for much of the past two years. Expedia CEO Peter Kern said on Monday that his company “feels very good about a summer recovery that should be very robust.”
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Airbnb said the possibility of future Covid-19 outbreaks, the war in Ukraine and inflations pose risks to its business.
Airbnb last week said on its website that it was tightening its cancellation policy – it will no longer accept “circumstances related to Covid-19” as a reason for refunds for bookings made from May 31.
The company said it was making the switch because of widespread vaccinations across most of the world and “this new way of living” with the virus.
Airbnb said nearly two-thirds of listings on its site allow visitors to cancel at least five days before check-in and get a full refund. He also said consumers can filter a search to find listings that allow free cancellations. Airbnb has suggested customers consider travel insurance – a product the company plans to sell “in the coming months”.
On the home front, Chesky told Airbnb employees last week that they could work just about anywhere without having to take a pay cut.
Earlier in the pandemic, Airbnb took advantage of this by offering consumers the option to work away from home or the office. Bookings have surged to less crowded places like beach and mountain towns, and long-term stays have increased.
The first-quarter loss was just a fraction of the $1.17 billion loss Airbnb suffered a year earlier when it took $782 million in write-downs on loans and office space in San Francisco. .
Revenue reached $1.51 billion, 80% more than in 2019 before the pandemic. This was driven by more than 100 million nights and experiences booked, a quarterly record.
Per share, the loss was 3 cents. Analysts had expected the San Francisco-based company to lose 25 cents per share on revenue of $1.45 billion, according to FactSet.
Airbnb Inc. shares rose 5% in after-hours trading. They had fallen 5% during the regular session.
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