HomeBusinessAirbnb forecasts upbeat revenue...

Airbnb forecasts upbeat revenue as international travel rebounds

Aug 3 (Reuters) – Airbnb (ABNB.O) forecast third-quarter revenue above market estimates on Thursday, but industry fears of softening U.S. domestic demand sent the vacation rental firm’s shares down 1.2% in after-hours trading.

The San Francisco-based company forecast quarterly revenue between $3.3 billion and $3.4 billion, ahead of analysts’ average estimate of $3.22 billion, according to Refinitiv data.

The company expects to gain from a rebound in urban and international travel but firms with significant U.S. exposure are losing domestic business as more consumers opt for vacations abroad.

Airbnb, which receives a majority of its revenue from outside the United States, said global cross-border bookings rose 16% in the second quarter from a year earlier and more guests were returning to cities, with urban nights booked increasing by 13% year-over-year.

“We continue to see signs of travelers returning to cities, historically one of the strongest areas of our business,” the company said.

However, its average daily rate (ADR) globally rose just 1% to $166, as the company said it was looking to moderate price hikes for consumers. Daily rates in North America decreased 1%.

The demand for domestic hotels has been flat in the United States as pandemic restrictions ease and a strong U.S. dollar encourages consumers to book flights and stays overseas, according to analysts.

But short-term rental company Airbnb, which has a large presence in cities, said it saw an acceleration in the total growth of nights booked from the first to second quarters in North America.

“I think that was telling, just the strength and resiliency of the North American consumer and we’re continuing to see that strength lead into Q3,” said Airbnb CFO David Stephenson on a call with investors.

Airbnb’s second-quarter revenue rose 18.1% to $2.48 billion, ahead of analysts’ estimates of $2.42 billion.

Gross bookings rose 13% to $19.1 billion, in line with expectations.

The short-term rental company reported a profit of 98 cents per share, compared with estimates of 78 cents.

Online travel agency Booking Holdings’ (BKNG.O) shares rose 10.25% in extended trading after the company raised its annual forecast as it benefits from international travel demand to Europe.

Reporting by Priyamvada C in Bengaluru and Doyinsola Oladipo in New York; Editing by Pooja Desai, Maju Samuel and Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.

Source link

Most Popular


Please enter your comment!
Please enter your name here

More from Author

Read Now

The New York Film Festival opens with the industry in limbo

Comment on this storyCommentNEW YORK — The New York Film Festival got off to a stylish start Friday night with a party at Central Park’s famed Tavern on the Green — or as stylish as you can get when none of the striking actors in this...

Live updates from Week 5 of college football

No. 6 Penn State 10, Northwestern 10 Early turnovers were always apart of Northwestern’s upset formula against top-10 Penn State, but even the most optimistic Wildcat fans likely couldn’t imagine forcing a turnover on the very first play.  After fielding the opening kickoff on a triple hop, Penn...

Apple Says iPhone 15 Pro’s Titanium Frame Does Not Contribute to Overheating Issue

Apple today said it plans to release an iOS 17 software update with a bug fix for the iPhone 15 Pro and iPhone 15 Pro Max overheating issue, and the company has since shared additional details about the matter with MacRumors. Importantly, Apple said the issue is...

Beyonce in Final Talks to Release ‘Renaissance’ Concert Film Through AMC Theatres Following Taylor Swift Deal (EXCLUSIVE)

Mason Poole A film based on Beyonce‘s smash hit Renaissance World Tour is in advanced talks to distribute directly to AMC Theatres, sources with knowledge of the project told Variety. Mega-agency CAA held preliminary talks with major studios and streamers two weeks ago, another source added, urging...

These are the top 4 Club stocks — and the bottom 4 — during the third quarter

September, historically the worst month of the year for stocks, once again brought pain to Wall Street, sending the market lower for the third quarter. A steep rise in Treasury yields and oil prices, combined with fears that the Federal Reserve would keep interest rates "higher...

Apple Says iPhone 15 Pro Overheating Due to iOS 17 Bug, Not Hardware Design

Widespread complaints about overheating of the new iPhone 15 Pro and Pro Max can be traced to several factors, including a software bug in iOS 17, Apple told CNET on Saturday. The company said the new phones' titanium frame and aluminum substructure aren't contributing to the issue, and that...

Giants LT Thomas out; Saquon a game-time call

Jordan RaananESPN Staff WriterSep 30, 2023, 11:57 AM ET2 Minute ReadEAST RUTHERFORD, N.J. -- The New York Giants could be extremely short-handed Monday night with left tackle Andrew Thomas being ruled out and running back Saquon Barkley expected to be a game-day decision, according to coach...

Amy Schneider, historic ‘Jeopardy!’ champ, is more than a trivia buff

Comment on this storyCommentThe past two years have been a whirlwind for Amy Schneider. In late 2021, the trivia buff became a household name when she appeared on “Jeopardy!” and rattled off a remarkable 40-game winning streak — the second highest in the show’s history.Her success...

Tory MPs demand Cabinet minister position for the North and 500,000 new homes

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emailsSign up to our free breaking news emailsA group of Conservative MPs representing the North of England has set out a manifesto calling for a dedicated Cabinet minister...

‘Any of us can foster’: New short film encourages more people in Wakefield to become foster carers

Rachel said: “We hope that this will mean that the film and its messaging will appeal to as wider audience as possible and encourage people to foster for their local authority.The film looks at three very different people who all show some of the attributes needed...