Economy · August 3, 2022

Airbnb is reporting increased revenue as travel rebounds

(FILES) This illustrative photo taken in Paris on August 29, 2018, a toy umbrella and coins next to the Airbnb rental website logo. (Photo by JOEL SAGET / AFP)

SAN FRANCISCO, United States (AFP) – Airbnb said Tuesday’s revenue in the just-concluded quarter exceeded $ 2 billion as people shrugged off worries about the pandemic and took part in a travel season under the banner.

The home rental platform posted a net profit of $ 379 million in what it touted as the most profitable second quarter in its history.

As a sign of confidence in its future, the San Francisco-based company announced it will dedicate $ 2 billion to share repurchases.

“During the height of the pandemic, we made many difficult choices to reduce our spending, making us a leaner and more focused company,” the company said in a letter to investors.

“Airbnb is well positioned for everything to come.”

More than 103 million nights and Airbnb-organized travel “experiences” were booked during the quarter, setting a new high despite inflation and other general economic woes, the company said.

The $ 2.1 billion in revenue collected during the quarter was 58% higher than the same period last year.

“We are in the midst of our strongest peak travel season so far,” Airbnb said in the letter.

“On July 4th, we recorded our highest daily income ever, signaling the strong summer season to come.”

Airbnb expects to set a new revenue record this quarter, bringing in between $ 2.78 billion and $ 2.88 billion.

“We have almost any kind of space in almost every place, so whatever the change in travel, we can adapt,” said Airbnb.

“Regardless of the economic context, our guests come to Airbnb because they can find great value for money and our hosts can earn extra income.”

The optimism came despite Airbnb closing its China operations earlier this year as the pandemic blockades show no sign of an end.

Airbnb in July stopped booking stays or visitor “experiences” in China, instead focusing on helping people with travel plans out of the 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 blockade,” Airbnb said.

“We continue to expect Asia Pacific, including outbound travel from China, to represent a significant long-term growth opportunity for Airbnb.”

Airbnb launched its business in China six years ago and has booked stays there for around 25 million guests. Residential bookings in China accounted for just one percent of Airbnb’s bookings in recent years, the company reported.

Airbnb faced stiff competition in China.

© Agence France-Presse