Consumers’ continued desire to travel has boosted AirBnB’s profits. However, growth in North America has “slowed somewhat,” the online accommodation provider explains.
In addition, the sales target for the current quarter lagged behind market expectations at USD 2.68 to 2.74 billion (EUR 2.49 to 2.55 billion). AirBnB justified the cautious outlook with the early Easter, which boosted first-quarter results.
After the figures were announced, shares fell by seven percent. At the start of the year, AirBnB increased revenue by 18 percent to $2.14 billion. At $261 million, net profit was more than twice as high as a year ago. Both values were above market expectations. Bookings increased by 9.5 percent, the report said. The growth was driven by Asian and Latin American customers, who booked 21 and 19 percent more often, respectively.
Triumph in Europe
Online portals such as AirBnB are also becoming increasingly popular in Germany. According to the Federal Statistical Office, the number of bookings for holiday apartments and houses increased by more than eight percent last year to 46 million overnight stays, exceeding the level before the outbreak of the coronavirus pandemic.
AirBnB expects continued growth for the rest of 2024. The European Football Championship and the Olympic Games could provide additional tailwinds in the third quarter.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
