Airbnb finally records a rebound in bookings with easing restrictions following speedy COVID-19 vaccinations. Bookings for Airbnb easily exceeds analysts’ estimates by growing nearly twice bigger than the number of estimates.
According to Reuters‘ report, Airbnb recorded a 52% jump in gross bookings for the quarter. This translates into $10.29 billion of gross bookings. In comparison, analysts’ estimate was comparably lower at $6.93 billion.
Additionally, revenue for Airbnb rose 5.4% to $886.9 million in the first quarter ended March 31. This figure outnumbers estimates at $714.4 million, Refinitiv IBES data notes.
Accordingly, adjusted loss before interest, taxes, depreciation and amortization (EBITDA) slimmed down to $59 million, presumably from cost cuts. As a note, Airbnb reported around $334 million a year earlier.
Quoted from Reuters, Airbnb said, “For guests aged 60 and above in the U.S., who were amongst the first groups to benefit from vaccine rollouts, searches on our platform for summer travel increased by more than 60% between February and March 2021”.
Will Airbnb report on surging bookings only from now on?
The lodging rental company said that the current expectation for the second-quarter revenue is good. Hoping for a rebound in urban and cross-border travels in the coming quarters, Airbnb expects revenue to grow back to 2019 levels.
Chief Executive Officer Brian also said on a post-earnings call that longer stays and a shift to travelling in groups by business travellers would benefit Airbnb a lot.
Airbnb managed to break through the pandemic by shifting its business strategy. To cater to people’s needs during the pandemic, Airbnb started to offer larger spaces and those located far away from major cities for the purpose of social distancing.
Bookings in Britain, for example, surged after the government unveiled plans to end lockdown in February. Additionally, demands and bookings also grew after travel restrictions in France was eased earlier this month.
Despite all of this, Airbnb said it is still too early to predict the recovery could prolong through the second half of 2021.