AirBnB Sales Boom: Proof of the Strong Return of Global Travel

The number of bookings through the AirBnB application in the first quarter of 2022 exceeded 100 million and continued to have positive signs when the number of rooms booked this summer increased by 30% compared to 2019.

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In the past two years, the tourism industry in Vietnam as well as the world has suffered a lot due to the Covid-19 pandemic, which has caused many countries to close their borders. But with the development of vaccines, the epidemic has been somewhat repelled, thanks to which many cities and countries have reopened to welcome tourists, giving hope for the revival of the tourism industry.

With this comeback, many businesses participating in the industry also returned strongly, including the name AirBnB with impressive business results in the first quarter.

Established in 2008, AirBnB with its online travel booking service is really a big counterweight to many traditional hotel chains. In the period before the Covid epidemic, when tourists had a lot of difficulties with many hotels being always full, AirBnB really became a lifesaver for many people. Through its booking application, the company profits from the commissions of the tenants.

In 2013, they hit 9 million customers using the app to book rooms and quickly reached a valuation of 10 billion USD a year later when it was poured with a further investment of 450 million USD.

Like many other start-ups, it took up to 10 years after it was founded for AirBnB to start earning its first profits. In 2018, the company announced that it made a profit of around $200 million, thanks to a sales boom that year with growth of nearly 80%.

By October 2019, AirBnB reached 2 million subscribers per night. However, while the business is relatively favorable, the Covid-19 epidemic caused the company's business activities to decline rapidly.

AirBnB's sales in 2020 only reached 3.38 billion USD, down 29.7% compared to a year earlier because of flight bans as well as many countries closing tourism. The company had to plan to cut costs, part of which was laying off nearly 2,000 employees in the Americas, Europe and Asia, with a bleak future. Even so, at the end of this year, they still had a relatively aggressive IPO when they raised $3.5 billion with shares closing at over $144 per share.

AirBnB has had a brilliant comeback in 2021, especially at the end of the year when most of the world's people have been vaccinated and governments are no longer restricting domestic and international travel. international.

Besides the barriers that have been removed, AirBnB also has flexible changes to adapt to the change of the epidemic globally.

The fourth quarter of 2021 marks a strong transformation for the company after the pandemic, when they achieved revenue of up to 1.5 billion USD, 80% and 38% higher respectively compared to the same period in 2020 and 2019. This success This is due to the fact that more and more places in rural areas are being discovered by customers, in addition to the large number of tourists returning to visit major cities.

The reopening of domestic and international flights in many countries around the world has helped AirBnB achieve these things. The number of rooms booked increased rapidly, while the sharp drop in cancellation rates brought a big source of revenue for AirBnB this quarter.

In addition, according to the company's statistics, the length of stay of customers also increased by about 15% in the period of 2019 - 2021, of which about 50% of the booked rooms are over 7 days in length. At the end of the fourth quarter of 2021, AirBnB earned a record net profit of $55 million, an increase of $406 million over the same period in 2019. For the full year of 2021, the company achieved a revenue of $6 billion, an increase of 77% compared to the same period in 2019. 2020; AirBnB's after-tax loss was negative USD 352 million, much improved compared to negative USD 4.6 billion the previous year.

AirBnB's impressive numbers in Q4 and 2021 (Image: AirBnB)

Their business situation continued to improve in the first quarter of this year, despite the risks from the Omicron mutation and the conflict between Russia and Ukraine. AirBnB expects first-quarter business results of $2.03 to $2.13 billion, up 70% year-on-year. They only have a loss of $19 million compared to $1.2 billion a year earlier; This is an extremely optimistic signal for the company.

The number of bookings through the AirBnB application this quarter exceeded 100 million and continued to have positive signs when the number of rooms booked in this summer increased by 30% compared to 2019. At the same time, the number of rooms. The trip with a length of more than 28 days also grew well, bringing a stable source of income for the company.

AirBnB's revenue in Q1/ 2022 grew very strongly compared to the same period last year (Photo: AirBnB)

Thus, with the tourism industry gradually returning to the pre-epidemic phase when a series of countries were ready to open, AirBnB also went through waves to regain its position. With amazing business results achieved in the first quarter of this year, it is difficult for any business to have a more impressive comeback than them, despite the war as well as the mutations that are still partly affecting the business. tourism industry worldwide.