Airbnb records a much lower first-quarter loss, revenue double compared to 2021

Airbnb drastically reduced the first quarter loss to $ 19 million, as the rebound in travel after two years of the pandemic increased bookings and revenue by 70% compared to a year ago.

The short-stay home rental firm on Tuesday predicted that second-quarter revenue will exceed Wall Street expectations. He said bookings are strong for summer and year-end holidays, and international bookings by Americans are moving ahead of the pre-pandemic pace.

“People are safer to book travel earlier and we are seeing strong demand for summer bookings and beyond,” CEO Brian Chesky he said during a call with analysts. “We are also seeing guests returning to cities and crossing borders at, or even above, pre-pandemic rates.”

However, the price hike that has helped Airbnb for a long time may be on the decline. The company said average daily rates only increased 5% from a year ago because there were more urban rents with relatively lower prices, and second-quarter rates will be flat compared to a year ago.

However, according to a FactSet survey, Airbnb expects second-quarter revenue to be between $ 2.03 billion and $ 2.13 billion, above analysts’ forecast of $ 1.96 billion.

Chesky’s remarks echo comments from U.S. airlines and other travel companies, which predict an increase in revenue this summer as people resume traveling after being locked up 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 solid.”

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Airbnb said the possibility of future Covid-19 outbreaks, the war in Ukraine and inflation pose risks to its business.

Last week, Airbnb said on its website that it was tightening its cancellation policy: it will no longer accept “Covid-19 circumstances” as a reason for a refund for bookings made on or after May 31.

The company said it was making the change due to vaccinations spread across most of the world and “this new way of living” with the virus.

Airbnb said nearly two-thirds of the listings on its site allow visitors to cancel at least five days before check-in and get a full refund. It also said that consumers can filter a search to find listings that allow for free unsubscribes. Airbnb has advised customers to consider travel insurance, a product the company plans to sell “in the coming months.”

Domestically, Chesky told Airbnb employees last week that they can work virtually anywhere without having to cut their paychecks.

At the start of the pandemic, Airbnb benefited from offering consumers the ability to work from a place other than home or office. Bookings have increased to less crowded places like seaside and mountain resorts, and long-term stays have increased.

The first quarter loss was a slice of the $ 1.17 billion loss that Airbnb suffered a year earlier when it requested $ 782 million in write-downs on loans and office space in San Francisco.

Revenue rose to $ 1.51 billion, 80% more than in pre-pandemic 2019. This was driven by over 100 million nights and experiences booked, a quarterly record.

On a per share basis, 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.

Shares of Airbnb Inc. rose 5% in after-hour trading. They had lost 5% during the regular session.

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