The economic downturn and surging household prices will not affect the travel demand, claims Airbnb. The lodging website has a total of 104-million-night bookings recorded in the months between April and June. Airbnb seems to be assured in the knowledge that the economic slowdown will not affect much of its businesses. According to Airbnb Chief Executive, Mr. Brian Chesky, it is yet to face its strongest peak this summer.
The largely lagged domestic and international travel have also recovered in recent times. The company further added that nearly fifty percent of its reservations are for a week or more, which is a positive sign for the industry as a whole. North America continues to be the strongest market in the travel segment with 37% higher bookings, compared to last year.
The overall number of bookings from April to June rose from 24 % (i.e., 103.7 million) in 2019 to 25% in 2021. The surge in the prices has increased the revenues for the company to $2.1bn i.e., and increase of 58% from 2021. The pre-pandemic levels have been reached in the Asia Pacific region, despite Covid restrictions in China. Seeing the profitability and growth at scale, Airbnb will invest further $2bn in buying back its shares.
The company bore a loss of $68m in 2021 as compared to a profit of $379m in 2022. The company is now all set to spread its wings to new markets. According to Mr. Chesky, the shifting of the marketing strategy has helped the company to achieve these new heights.