Airbnb Inc (NASDAQ: ABNB) announced more than 100 platform upgrades Monday in anticipation of “the biggest travel rebound in a century,” said Airbnb CEO Brian Chesky.
Airbnb analysts have made substantial upgrades to this year’s forecasts, increasing revenue projections with the expectation that Airbnb will make more sales than previously anticipated.
Analysts have made a 12.5% increase in revenue estimates from $4.8 billion to $5.4 billion in 2021, a 57% increase on previous 12-month sales.
The Airbnb Upgrades: The most important upgrades are centered around newfound flexibility and encompass flexible dates, flexible matching and flexible destinations — and capitalize on current consumer trends.
“Flexibility is key. People can live and work in a lot more places than they used to. We can point demand to where we have supply. This is a huge game changer for balancing supply and demand,” Chesky said.
Airbnb observed three newly emerging travel habits since the onset of the pandemic, all of which target the now-flexible nature of travel:
1. Travel anytime: WFH has made travel a year-round opportunity.
2. Travel anywhere: Airbnb guests have traveled to 94,000 cities in the last 12 months.
3. Longer-term stays: 24% of trips in the first quarter were longer than 28 days.
Why These Upgrades Occurred: Travel and travelers have changed, so Airbnb said it was imperative to enact top-to-bottom updates that provide better guest and better host experiences.
The pandemic has shifted travel away from rigidity toward fluidity, as “traveling is starting to blur with living,” Chesky said.
“The more we’re stuck in a home, the more we want to travel and be with people we care about. The key thing is, they’re going everywhere and they’re staying longer.”
The pandemic has left people more desperate and flexible to travel. This bodes well for Airbnb, as the company has “been more profitable in the midst of a pandemic because of the structural changes [it] made,” said Chesky.
Photo courtesy of Airbnb.
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