In today's video I talk about Airbnb (ABNB 0.88%) and how it will come out of this pandemic a major winner. It's got the Summer Olympics and future expansions such as renting, real estate, and possibly travel agenting.
The advantage
Airbnb had 4 million hosts, 14 thousand new hosts a month, and 7 million listings worldwide in 2020. Wyndham, the biggest hotel chain, has only 8,000 locations worldwide. Airbnb's main competitors are Booking, Expedia, Google, and hotel chains.
2020 was a horrible year for the travel industry. But Airbnb suffered less than the hotel chains. When hotel chains close, they close down completely, and some have done so. With Airbnb, a lot of hosts were still hosting during the pandemic (complying with new regulations); that's why Airbnb's business has actually rebounded quite nicely since last June and has taken a smaller hit than what the broader market expected.
A new age of travel
Summer is coming. People want to travel but don't want to be in crowded areas such as hotels. They might just book an Airbnb. You've got the Tokyo Summer Olympics coming up, and Airbnb is the worldwide partner. Another advantage it has over hotel chains is that its model works everywhere.
There's a big shift going on in the world, and Airbnb will take full advantage of it. Airbnb experiences are another aspect of the business that should rebound nicely this year. And the business can expand well beyond what it offers today. Airbnb could be a one-stop shop for travelers.
For the full insights, please do watch the video below.
*Stock prices used were the closing prices of April 30, 2021. The video was published on May 2nd, 2021.
