Resurgence in travel and tourism globally because of rising rates of Covid-19 vaccinations in the last three months of the current year would drive growth for the company next year, said the short-term home rental company Airbnb Inc, as it reported better than expected revenues for its latest completed quarter.
With nations, including the United States, having started to relax the restrictions induced by the Covid-19 pandemic for travelers show are fully vaccinated, there has been a constant rise in the volumes of international travel search.
Airbnb saw a sharp fall in its business starting early in 2020 when travel was virtually stopped because of the breakout of the pandemic, the business of late has witnessed a recovery in its business because of the easing of the lockdowns in various markets and with leisure-seeking domestic travelers more intent on booking homes away from major cities because of infection concerns. The company now expects a further boost to its revenue because of a growth in cross-border travel.
"We are seeing recovery in both longer-distance and cross-border travel this year, while domestic and short-distance travel continues to be more popular than 2019 levels," the company said in a statement.
North America and Europe were the markets that were instrumental in its recovery, said the vacation firm – as these regions reported higher average daily rates. There was a 15 per cent growth in the metric in the third quarter to about $149 from a year earlier.
As of Sept. 30, nights booked are 40 per cent higher than for the same period in 2019, for the Thanksgiving week in the United States, Airbnb said.
According to analysts, there has been a permanent step up in the lodging industry mix because of the Covid-19 pandemic, and Airbnb is expected to continue to register growth in this alternative accommodation market where the company has a market share of more than 50 per cent among all online travel agents worldwide.
The company reported a 48.8 per cent year on year rise to $19 billion in its gross bookings in the third quarter. The company however fell short of market expectations of the metric of $12.23 billion.
There was a 66.7 per cent rise in revenues of the company during the quarter to $2.24 billion which easily beat expectations of analysts of $2.05 billion. Airbnb also reported an almost fourfold growth in its net income to $833.9 million compared to the same quarter a year earlier.
The company forecast revenues of between $1.39 billion and $1.48 billion for the fourth quarter. Analysts on average estimated $1.44 billion, according to Refinitiv data
(Source:www.thenationalnews.com)
With nations, including the United States, having started to relax the restrictions induced by the Covid-19 pandemic for travelers show are fully vaccinated, there has been a constant rise in the volumes of international travel search.
Airbnb saw a sharp fall in its business starting early in 2020 when travel was virtually stopped because of the breakout of the pandemic, the business of late has witnessed a recovery in its business because of the easing of the lockdowns in various markets and with leisure-seeking domestic travelers more intent on booking homes away from major cities because of infection concerns. The company now expects a further boost to its revenue because of a growth in cross-border travel.
"We are seeing recovery in both longer-distance and cross-border travel this year, while domestic and short-distance travel continues to be more popular than 2019 levels," the company said in a statement.
North America and Europe were the markets that were instrumental in its recovery, said the vacation firm – as these regions reported higher average daily rates. There was a 15 per cent growth in the metric in the third quarter to about $149 from a year earlier.
As of Sept. 30, nights booked are 40 per cent higher than for the same period in 2019, for the Thanksgiving week in the United States, Airbnb said.
According to analysts, there has been a permanent step up in the lodging industry mix because of the Covid-19 pandemic, and Airbnb is expected to continue to register growth in this alternative accommodation market where the company has a market share of more than 50 per cent among all online travel agents worldwide.
The company reported a 48.8 per cent year on year rise to $19 billion in its gross bookings in the third quarter. The company however fell short of market expectations of the metric of $12.23 billion.
There was a 66.7 per cent rise in revenues of the company during the quarter to $2.24 billion which easily beat expectations of analysts of $2.05 billion. Airbnb also reported an almost fourfold growth in its net income to $833.9 million compared to the same quarter a year earlier.
The company forecast revenues of between $1.39 billion and $1.48 billion for the fourth quarter. Analysts on average estimated $1.44 billion, according to Refinitiv data
(Source:www.thenationalnews.com)