Airbnb forecasts Q3 revenue above estimates on rebound in international travel

:Airbnb forecast revenue for the current quarter above market estimates on Thursday, as the vacation rental firm is set to gain from a rebound in international travel.

The San Francisco-based company forecast revenue for the third quarter between $3.3 billion and $3.4 billion, ahead of analysts’ average estimate of $3.22 billion, as per Refinitiv data.

Travel operators have begun to benefit from a robust rebound in international travel, aided by pandemic restrictions easing and a strong U.S. dollar that has encouraged consumers to book flights and stays overseas.

Airbnb, which receives a majority of revenue from outside the United States, said cross-border travel to Asia Pacific grew over 80 per cent in the second quarter, from a year earlier.

“While the majority of travel in North America remains domestic, we saw continued strong year-over-year growth in cross-border nights booked during the quarter,” the company said in a statement.

Major hotel operators like Marriott International and Hilton Worldwide Holdings have also alluded to the rise in overseas bookings, underscoring the strong appetite for travel.

Last month, Airbnb said it had noted an “exceptional level” of demand for properties in the greater Paris region, known as Île-de-France, just a year ahead of next year’s Olympics, to be held in the city.

However, its average daily rate (ADR) rose just 1 per cent in the second quarter, to $166, as pressure on household budgets from high inflation pushed consumers to choose affordable stays. ADR in North America decreased 1 per cent, compared to the same period from a year earlier.

Gross bookings rose 13 per cent to $19.1 billion, in line with analysts’ average estimate.

Airbnb’s quarterly revenue rose 18.1 per cent, to $2.48 billion, ahead of analysts’ estimate of $2.42 billion.

Shares of Airbnb were down 4.2 per cent after the bell following downbeat quarterly reports from Spirit Airlines and Expedia from earlier in the day.