Among the immediate consequences of the outbreak of the pandemic, we were able to appreciate a couple of years ago how the tourism and hotel industry saw their activity reduced like never before. Now, everything indicates that things are getting back on track.
Airbnb said in its latest earnings report that revenue in the recently ended quarter topped $2 billion as people shed pandemic worries and partook in a banner travel season.
Airbnb and the resurgence of tourism
The housing rental platform recorded a net income of $379 million dollars, in what was defined as the second most profitable quarter in its history. Showing off the future they project, the company announced that it will allocate 2,000 million dollars to the repurchase of shares.
“During the height of the pandemic, we made many difficult decisions to reduce our expenses, which made us a more agile and focused company”said the company based in San Francisco, United States, through a letter to investors, where they assure that “Airbnb is well positioned for what lies ahead”.
Among the figures that stand out from the quarter, the company points out that more than 103 million nights were booked and travel “experiences” organized by Airbnb, which established a new record, despite inflation and other general economic problems, the company reported. .
The $2.1 billion in revenue earned during the quarter was 58% higher than the same period a year ago.
“We are in the midst of our strongest travel peak season yet”Airbnb said in the letter.
“On the 4th of July (US Independence Day), we recorded our highest single-day revenue, signaling the strong summer season ahead”.
Airbnb expects to set a new revenue record in the current quarter, generating between $2.78 billion and $2.88 billion. “We have almost every kind of space in almost every place, so regardless of changes in travel, we can adapt”Airbnb said. “Regardless of the economic environment, our guests come to Airbnb because they can find great value and our hosts can earn additional income”.
The optimism came despite Airbnb closing its business in China earlier this year, as the pandemic lockdowns show no signs of ending there.
In July, Airbnb stopped booking stays or “experiences” for visitors in China after six years, focusing on the 99% of users who for them represent the rest of the world, to help people there with travel plans outside of the world. country, the company said in an earnings report.
“We made this difficult decision based on the costly and complex challenges of operating in the country, exacerbated by the severe COVID closures”said Airbnb, also noting that “We continue to expect Asia Pacific, including outbound travel from China, to represent a significant long-term growth opportunity for Airbnb”.
Despite the fact that the demand for the service brokered by Airbnb is “higher than ever”, with profits close to $2.1 billion, which is 58% higher than the previous year, according to the company. For analysts, this performance is poor, as $2.11 billion in profits were projected for this period. Even so, this economic performance is still a milestone for an iconic company in an industry that has been hit particularly hard in recent times.
