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Airbnb says demand is increasing despite economic uncertainties

Demand for Airbnb bookings continues to rise, even as high fuel prices and inflation weigh on consumers and the economy.

Airbnb said on Tuesday that it had 103.7 million bookings on its platform during the three months ending in June, a new quarterly high for the company and a 24% increase from the same period in 2019. before their business was ravaged by the pandemic.

With that jump in bookings, Airbnb reported revenue of $2.1 billion, up 58% from a year ago. The company also posted net income of $379 million, marking its most profitable June quarter ever.

Airbnb also benefited from higher average daily rates. At $164, the average nightly rate is down slightly compared to the first three months of this year, but up 40% compared to the same period in 2019.

Notably, Airbnb said that bookings in high-density urban areas, which typically get higher rates, have increased from earlier this year and surpassed pre-pandemic levels.

Airbnb shares were down 4% in after-hours trading on Tuesday after the results.

The results highlight both the renaissance of the travel industry and the durability of Airbnb’s business more than two years after the pandemic. In the first few months after Covid-19, Airbnb slashed its spending and cut a quarter of its global workforce to tackle what its CEO said was a “standstill” in global travel.

“We have maintained this discipline ever since, allowing our hiring and investment plans to remain unchanged from the beginning of the year,” the company said in a letter to shareholders.

A growing number of tech companies are announcing a hiring and layoff freeze amid a wave of economic uncertainty this year, but Airbnb says it is “well positioned for what’s to come.”

Signaling its confidence, Airbnb announced a $2 billion share buyback program to shareholders, the company’s first. Airbnb says this measure will allow it to offset the dilution of employee stock programs.

The company said it expects the current quarter to be a “tipping point” in its post-pandemic recovery and noted that it expects to report its highest quarterly revenue in the three months ending in September. Another positive sign for the company: July 4th was its biggest revenue day ever, he said.

Source: CNN Brasil

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