Business Maverick: Airbnb’s Sales Forecast Tops Estimates on Strong Travel Demand

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Airbnb Inc. shares surged the most since 2021 after the company’s sales outlook beat analysts’ estimates, signaling robust travel demand following a record year in 2022. Shares rallied as much as 11.7% to $135, the highest since May.

The San Francisco-based home-sharing company expects sales of $1.75 billion to $1.82 billion in the three months ending in March, easily clearing analysts’ average projection of $1.68 billion. Airbnb expects the number of nights and experiences booked to grow at close to the same 20% pace of the fourth quarter.

“Those travel-crazy Europeans are booking Summer travel earlier this year,” Evercore ISI analyst Mark Mahaney wrote in a note to clients. Now, it’s starting to see some of the trends it benefitted from — such as people renting large rural homes for weeks or months at a time — reverse and travelers opt for shorter stays in big cities and more international destinations. High airline prices and a potential looming economic slowdown are also adding to consumers’ considerations when weighing a trip. But it doesn’t seem to be putting off travelers yet, as the company said “consumer confidence to travel remains high.

“Despite macro volatility, demand remains robust and guests are booking longer stays” further in advance, creating a “strong backlog,” JPMorgan Securities analyst Doug Anmuth said in a note.that allow their tenants to sublet their apartments, and who then receive a cut from the booking.

 

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