Just when the travel industry struggled in the past months, it’s a different story for Airbnb. Even with Delta variant concerns, Airbnb Inc recorded $2.2 billion in revenue for its Q3 performance. This represents a 67% jump in Airbnb’s Q3 revenue. According to analysts, Airbnb’s Q3 revenue was just expected to hit $2.07 billion. Also, the company’s $834 million net income surpassed Wall Street’s expectation of $456.2 million.
Airbnb’s Q3 Revenue Surpassed Expectations
In August, the San-Francisco-based company anticipated fewer bookings in the third quarter compared to 2019. However, Airbnb benefited from people who opted to travel closer to home as an alternative to taking longer trips. Some travelers even booked longer to take advantage of the new work-from-home policies of different companies.
In September, Airbnb marked its billionth guest. According to Airbnb’s CEO Brian Chesky, new travel trends will stay even after the pandemic. In a letter to shareholders, he said that “But something bigger than a travel rebound is happening”. He added that workers “can now work from anywhere, travel any time, and stay longer”. For Chesky, “we believe that flexibility will be the most important benefit after compensation”.
Airbnb estimates its fourth-quarter revenue to fall between $1.39 to $1.48 billion. Analysts, on the other hand, anticipate a $1.43 billion revenue for the San Francisco-based company.
Analysts at Cowen Inc estimate that more people are looking for alternative accommodations. According to analysts, global lodging spending increased by 33% from just 24% before the pandemic. 50% of those bookings came from Airbnb.
In a report published before Airbnb’s Q3 revenue was released, analysts believed that alternative lodging’s pandemic gains will stay.
Airbnb sees higher demand in the coming weeks as the US starts to welcome vaccinated travelers starting November 8. Airbnb said that it is “encouraged to see these new travel trends extending beyond summer travel peak, and are looking forward to a strong” fourth quarter.