Stocks coming week: Airbnb and Vrbo are overloaded with reservations

“Vacation, everything I ever wanted. Vacation, I had to get away.”

People are roaming the roads and airports for spring break trips this coming week and are already starting to make plans for the summer. And that’s good news for companies like Airbnb and its home-sharing rival Vrbo, which is owned by online travel giant Expedia (EXPED).
Airbnb shares have risen more than 20% this year after the successful IPO of 2020, while Expedia has climbed more than 30%.
Inventories of airlines and hotels also jumped. United (UAL) and South West (LCV) are each up more than 30% in 2021. Hilton (HLT) and Marriott (MAR) both gained around 10%.

Consumers clearly want to start traveling again, especially as more adults are vaccinated.

“We’ve had a phenomenal recovery,” said Vrbo President Jeff Hurst in an interview with CNN Business. “We could see a real boom in leisure travel.”

An upsurge in vacations could lift all the boats in the area. Hurst, who is also Expedia’s co-head of marketing, said the company’s many other brands, including, Travelocity, Orbitz and Hotwire, are also starting to rebound.

“More and more people are looking for central urban destinations that have been argued during the pandemic. People are interested in returning to Las Vegas,” said Hurst, adding that there is a certain degree of freedom for people who have already received coronavirus vaccines now. to feel.

“People will start to book more flights and hotels and resorts will make a big comeback,” he said.

But there will also be people who will want to drive a few hours to get to a rental house in the woods instead of flying to a beach or hill station and staying in a fancy hotel.

Hurst said that Vrbo, which was founded in 1995 as Vacation Rentals By Owner, is having its best start to a year in a quarter of a century in the United States, adding that people are also starting to book trips from. been much earlier than usual.

Airbnb is also booming. The company said earlier this month “That customers are increasingly looking for ways to meet safely and meaningfully connect with their loved ones” and his hosts said won a combined billion dollars since the start of the pandemic last year.
Places like southern Maine, the Jersey Shore, the suburbs of Austin, northern Arizona and – of course, the beaches of Florida – are hot spots for travelers, according to Airbnb.

Hurst de Vrbo said that another trend he is seeing is the rise of so-called “flexcation”. More and more people are willing to be away for longer periods.

The growing trend towards working from home and the availability of virtual education make it more desirable for people to be away from home for weeks … or even months.

The recovery in employment could accelerate

The US Jobs Report is the big event on the calendar next week.

Investors will be looking to see if the economy can improve on the 379,000 jobs created in February. March numbers will be released Friday at 8:30 a.m. ET.

How will investors react? Well … they won’t. At least not right away. U.S. markets will be closed for Good Friday, which is not a federal holiday.

The unemployment rate now stands at 6.2% from the peak of 14.7% last April. But there could be more improvement on Friday.

“With recent robust survey data indicating bullish business confidence, supported by the vaccine rollout and new $ 1.9 trillion stimulus, hiring is likely to have remained strong in March,” IHS Markit analysts said.

Capital Economics said the labor market recovery likely “kicked into high gear” in March, driven by a rebound in recreation and hospitality hires as states including Texas lifted restrictions on businesses and restaurants.

“The continued rebound in OpenTable restaurant data suggests that the recovery in bar and restaurant employment is accelerating, in line with overall employment in the leisure sector,” US economist Andrew Hunter wrote in a report. research note.

Capital Economics predicts that 700,000 jobs were added to the economy in March, which would be the best month since September.


Tuesday: US consumer confidence; Results from BioNTech, BlackBerry and Lululemon Athletica

Wednesday: EIA raw inventories; the benefits of Walgreens Boots Alliance and Micron; Deliveroo IPO

Thusday: ISM manufacturing index; claims for unemployment benefits in the United States; CarMax earnings

Friday: Employment report for March; American markets closed for Good Friday

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