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

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More from Author

Read Now

Fever select Caitlin Clark with No. 1 pick in WNBA Draft

BROOKLYN, N.Y. — Eight days after completing one of the greatest collegiate basketball careers ever recorded, Caitlin Clark was selected with the No. 1 pick in Monday’s WNBA Draft by the Indiana Fever.Clark is poised to not only help the Fever return to the postseason for...

In 1998, Bollywood star killed two blackbucks. A gang still seeks revenge.

Khan has been in the crosshairs of an armed gang since 1998 for shooting two blackbucks on a recreational hunting trip.Two members of a notorious criminal gang have been arrested for firing at the home of Bollywood actor Salman Khan in apparent retaliation for the superstar’s...

14 More Games Land on PS Plus Extra, Premium Today

As always, we ran a Poll over the weekend to gather your thoughts on the line-up, and (almost) as always, one-third of you responded by saying "it's a crap selection". 26 per cent of voters were at least somewhat happy with the selection, with Dave the...

Where Biden’s billions in chipmaking money have gone — and what could be next

The White House announcement this week of up to $6.4 billion in chipmaking cash for Samsung (005930.KS) marks a move to the next phase of the Biden administration's effort to bring semiconductor manufacturing back to the US.The focus so far has largely been on leading-edge logic...

WNBA expansion headed for 16 teams. Portland, Toronto and Philly are options

NEW YORK — The WNBA is looking to continue growing in the next few years. The league intends to reach 16 teams by 2028, commissioner Cathy Engelbert said before the draft, confirming The Athletic report from earlier Monday.The league announced earlier this year that the Bay...

Microsoft Makes High-Stakes Play in Tech Cold War With Emirati A.I. Deal

Microsoft on Tuesday said it would make a $1.5 billion investment in G42, an artificial intelligence giant in the United Arab Emirates, in a deal largely orchestrated by the Biden administration to box out China as Washington and Beijing battle over who will exercise technological influence...

A hockey puck hurtled toward her son’s head. A fan jumped to block it.

Just over a minute was left on the clock during a hockey game in Cleveland Thursday when a player struck the puck, sending it barreling into the stands and toward Asia Davis’s 4-year-old son. That’s when another fan jumped and extended his right arm to block...

Thailand’s Finance Ministry to lead 17 agencies in considering House report on legalizing casinos

Thailand’s Ministry of Finance has been appointed lead agency to consider a House committee study recommending the legalization of casino gaming but will work with 16 other agencies in doing so, local media reports. According to English-language outlet The Nation, the appointment was ordered by way of...

WWE RAW Results Coverage, Reactions and Highlights for April 15, 2024

It’s Monday night, and you know what that means! WWE RAW will go down tonight, and Ringside News has got you covered with live play-by-play results coverage for the April 15, 2024 episode. The start time for WWE RAW is 8:00 PM EST. Match-by-match highlights...

Coachella Weekend 1 Recap, J Balvin’s Out Of This World Coachella Set, Metro Boomin & Future Top Hot 100 | Billboard News

It’s Monday April 15th, Billboard counts down the top 10 on the Hot 100, we’re running down all the headliners and special guest performers and some notable audience members that went down at the first weekend of Coachella, J Balvin gives us a behind the scene...