Airbnb growth does appear to be moderating, analyst says

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With consumer confidence sticking higher in september signs of life are coming back to the travel industry occupancy rates were in line with 2019 levels in september and domestic travel intent trended higher that’s according to data from str and the conference board and of course we got a lot of positive airline earnings as well to support that notion joining

Us now to discuss jmp securities equity research analyst nick jones nick you covered the digital travel companies the booking.coms of the world and i imagine that the picture is similar for them is it sort of a rising tide lifts all boats are we just seeing a kind of rosy outlook right now for the travel industry writ large yeah i think that’s right you know the

Airlines have uh given some good commentary the trends remain resilient occupancy rate as you pointed out is back to 2019 levels in september um conference board is saying intent to travel is increased increasing um average daily rates or are elevated still indicating demand is still high so trends are really looking good into the end of the year and it’s going to

Developed for early 2023 um so i think near term that’s absolutely right but longer term we look kind of further into next year the probability of a recession uh continues to increase and if you look back over history generally the spend on travel does start to decline in a recession so i think um in part that’s just maybe keeping these stocks from really breaking

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Out made kind of near-term positive data points help us keep some of the airlines honest here from what you’re seeing in terms of the number of different flights the routes that are available is there actually more capacity that is increasingly being added on here and is that translating through to better fares for customers from what you’ve been tracking in your

Own research parents are really coming down from the kind of the checks we’ve done in his anecdotal um you know the price of flights are still pretty elevated and so are the price of hotels so despite they’re still being pretty high cost um the demand of travel is is still there um you know we have heard some commentary particularly the hotels that not all of

The rooms are actually available today because they’ll have the staffing to make them available so that could in part be why some of um you know the average daily rates remain elevated so it’s kind of more supply comes on it’ll be interesting to watch if the airlines in the hotel is actually lower prices or do they um kind of hold on to where prices are today is

Kind of input cost increase um what about the sort of international lumpiness if you will i mean a booking.com which gets more of its revenue from europe than the others is that then more vulnerable yeah there’s there’s kind of puts and takes there so as the us dollar strengthens or could create some fx headwinds kind of two revenues and cost at booking but at

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The same time the intent to travel um from the us to um foreign destination has actually increased back towards 2019 level so it’s strengthening u.s dollar can benefit a company like booking as more u.s citizens look to travel um you know to europe and outside of the u.s is airbnb still in any type of growth phase from right now right now from what you can see

Accommodations um really just another accommodation they’ve really normalized um um that type of accommodation to consumers um their growth does appear to be moderating we have a market perform rating on it largely due to valuation but what they’ve done is you know it’s heroic what they’ve done to kind of a new um accommodation class um the company still has

Room to add experiences um to its offering they could have promoted listings to um kind of the supply side of the platform that could continue to drive net revenue um kind of faster than we’re looking for today but we look for more evidence before we really start making that into our models but from what we can tell it looks like kind of the you know gbv growth

At airbnb is going to be in line with kind of expedient booking in a couple years and be it similar kind of nominal dollar growth rate all right good time to be a bills fan see the helmet in the back of your shot there jmp securities equity research analyst nick jones joining us here today thanks so much nick

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Airbnb growth ‘does appear to be moderating,’ analyst says By Yahoo Finance