Airbnb reported a record profit of $834 million in the third quarter as more people got immunized and returned to traveling.
When companies shuttered offices in reaction to the COVID-19 outbreak, some employees were able to work remotely using video technology, and Airbnb reported a significant increase in rentals as a result.
In a statement to shareholders, the San Francisco-based home-sharing firm stated that it anticipates the trend of work flexibility will increase. Airbnb stated that major corporations such as Ford and Amazon have declared policies allowing for greater remote labor, and it expects others to follow suit.
Airbnb has recovered from a steep drop in business early last year as leisure-seeking domestic travelers booked homes outside of major cities, thanks to loosening lockdowns. It now expects cross-border travel to boost revenue even more.
“We are seeing a resurgence in both longer-distance and cross-border travels this year,” the airline stated in a statement, “although domestic and short-distance travel continues to be more popular than 2019 levels.”
North America and Europe, which have higher average daily prices, drove the recovery, according to the holiday rental. From a year ago, it increased 15% to around $149 in the third quarter.
According to Airbnb, the number of nights booked for Thanksgiving week in the United States is 40 percent higher than the same period last year.
Analysts predict Airbnb to continue to develop in the alternative accommodation market, where it has a more than 50% share among worldwide online travel brokers, as the pandemic causes a lasting shift in the lodging industry mix.
Gross bookings increased by 48.8% to $11.9 billion in the third quarter. However, it fell short of market estimates, coming in at $12.23 billion.
Revenue increased by 66.7 percent to $2.24 billion, exceeding expectations of $2.05 billion. From a year ago, net income increased nearly fourfold to $833.9 million.
Airbnb expects sales of $1.39 billion to $1.48 billion in the fourth quarter. According to Refinitiv statistics, analysts projected $1.44 billion on average.
