© Reuters. FILE PHOTO: The Airbnb logo appears on a small pyramid under the glass pyramid of the Louvre Museum in Paris, France, March 12, 2019. REUTERS/Charles Plateau
(Reuters) – Airbnb Inc’s quarterly revenue beat Wall Street expectations, and the short-term home rental company said on Thursday that a rebound in global travel amid high vaccination rates in the final three months of the year will drive growth in 2022.
Search volumes for international travel have increased as countries, including the United States, begin to ease pandemic-related restrictions on fully vaccinated visitors.
The easing of shutdowns helped Airbnb recover from a sharp decline in business early last year as local travelers looking for entertainment booked their homes away from the big cities. It now expects cross-border travel to increase its revenue.
“We are seeing a recovery in both long-distance and cross-border travel this year, while domestic and short-haul travel remain more common than 2019 levels,” the company said in a statement.
Vacation Rentals said the recovery was dominated by North America and Europe – regions with higher average daily rates. It rose 15% to about $149 in the third quarter from a year earlier.
For Thanksgiving week in the US, Airbnb said that as of September 30, booked nights are up 40% from the same period in 2019.
With the pandemic causing lasting advancements in the accommodation industry mix, analysts expect Airbnb to continue to grow in the alternative accommodation market, where it owns more than 50% of online travel agents.
In the third quarter, total bookings rose 48.8% to $11.9 billion. However, it missed market expectations of $12.23 billion.
Revenue rose 66.7 percent to $2.24 billion, exceeding estimates of $2.05 billion. Net income jumped four times to $833.9 million from the previous year.
Airbnb expected fourth-quarter revenue to be between $1.39 billion and $1.48 billion. Analysts estimated an average of $1.44 billion, according to Refinitiv data.
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