house in the desert

Checking in on Airbnb

Airbnb Outperforms Hotels

Last week, Airbnb (ABNB) reported results for the fourth quarter—its first report after its IPO. The home-share platform has performed much better than other sectors of the travel industry over the past year.

Airbnb shared that revenue was down 22% year over year, which is not ideal, but much better than Marriott (MAR) and Hilton (HLT), which have seen year-over-year revenue drop by an average of 61%. Travel booking platforms, like Expedia (EXPE) and Booking Holdings (BKNG) have also seen year-over-year revenue tumble.

Long-Term Bookings Climb

Airbnb has seen long-term bookings climb as the pandemic drags on and people are seeking out new places to work and social distance at home. The company’s leadership expects that business will get a boost as more people become vaccinated and feel comfortable traveling.

There is pent up demand for travel, and many people will likely feel that staying in an Airbnb is safer than staying in a crowded hotel. Some analysts believe that the pandemic will have a permanent impact on the balance in market share between hotels and home-share services.

International Demand Likely to Stay Slow for Some Time

The company still faces a bumpy road to full recovery despite Airbnb’s recent victories. International travel for leisure is still almost nonexistent. This will likely be the case until more people are vaccinated, government restrictions on travel are lifted, and people feel more comfortably flying again.

Though domestic Airbnb rentals in remote locations have been popular this year, the majority of the company’s offerings are outside the US in urban areas. The past year has been eventful for Airbnb, and the coming months will likely bring more twists and turns.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender