To hell with recession, inflation and other economic fears: Short-term rental company Airbnb has reported record revenue.
According to Airbnb’s latest financial report, published tuesday, the market for non-hotel overnight stays is hotter than ever. The vacation company posted record revenue of $2.9 billion in the third quarter of 2022. In contrast, last year, when the coronavirus pandemic caused even more fallout for the hospitality industry, net income was 29% lower.
“The third quarter was our largest and most profitable quarter ever despite geopolitical and macroeconomic headwinds,” Airbnb co-founder and CEO Brian Chesky said in the report. “The third quarter of 2022 demonstrates that we continue to drive growth and profitability at scale. Customer demand on Airbnb remains strong, our host community continues to grow, and this was our most profitable quarter ever.
The report also noted a number of positive business trends, including the fact that, despite back-to-office requirements, guests continue to book long-term Airbnbs at a steady pace. Additionally, “guests are increasingly returning to cities and crossing borders,” with 48% of total gross room nights booked in high-density urban areas. The number of hosts on the platform, and therefore the supply, has also increased.
Since the company was founded 14 years ago, hosts have accumulated over $180 billion on the platform.
“Just like during the Great Recession in 2008, when Airbnb started, people are especially interested in earning extra income through accommodations,” Chesky noted in the report.
Airbnb’s rising returns came on top of news that its shares had fallen more than 5% after hours on Tuesday, MarketWatch reported. The drop followed a 2% rise in the regular session.
“We continue to thrive despite macroeconomic uncertainties,” Chesky said during an earnings call, according to the outlet. He also noted on the call that an average Airbnb costs $156 a day, 5% more than this time last year.
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