Airbnb CEO identifies 5 trends that shouldn’t be reversed
Before the pandemic, Airbnb’s core business was motivated by vacationers going abroad for a week’s vacation. Adventurers sought locations in urban centers, accessible to major city attractions. Today, it is the home rental platform that is experiencing the strongest growth in trips within 80 km of home, with a quarter of all stays lasting 28 days or more.
It turns out that the traveler is very adaptable and Airbnb (ABNB), being a technology platform backed by four million hosts in 100,000 cities, has been able to adapt to changes in behavior in the midst of prescriptions. home stay and mandatory quarantines.
Despite the increase in demand for exploring remote rural destinations, Airbnb is seeing a slow return to the cities. Forty percent of all nights booked in the first quarter were in high density urban areas.
As hotel chains like Marriott (MAR) bet on returning leisure travelers to popular tourist destinations, Airbnb CEO Brian Chesky believes the hype around crowded and congested cities may be a relic of the pre-pandemic past.
“This is a long-term trend – a trend towards bigger houses, a trend towards longer stays, a trend to go from a few cities to anywhere, a trend of business travel to pleasure travel and a trend from mass travel to meaningful travel. I think of all of these things … it’s hard to imagine these reversing, “he said during an interview with Yahoo Finance Presents.
The roll-out of vaccines in wealthy countries and the potential for more cross-border travel is a looming reality, but if Airbnb’s Average Daily Rate (ADR) is any indication, short-term forecasts appear that first quarter elements will continue. .
Airbnb’s ADR rose 35% to $ 160 in the first quarter, reflecting the relative strength of North America, which tends to have higher listing prices.
“The United States is [recovering] disproportionately faster than other countries. And people go to non-urban areas more than to urban areas. As countries lift restrictions, people visit cities, people cross borders, then ADR should drop a bit, because we’re going to come back to Europe, Latin America, Asia, to the city. And in cities, people tend to book studios, one or two bedroom apartments, rather than four or five bedroom houses and vacation rentals, ”Chesky said.
Melody Hahm is Yahoo Finance’s correspondent for the West Coast, covering entrepreneurship, technology and culture. Follow her on Twitter @melodyhahm and on LinkedIn.
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