What happened
Airbnb (ABNB 1.03%) stock was in demand with investors, thanks largely to fresh indications of high travel demand in the immediate future. The DIY accommodation arranger's share price booked a gain of just under 5% on Tuesday, well exceeding the 1.3% of the frothy S&P 500 index on the day.
So what
The U.S. Travel Association (USTA) is projecting a relatively heavy spring break travel period. It cited a recent Airlines for America set of estimates for travel during that time, forecasting 158 million passengers throughout March and April. That figure averages out to 2.6 million per day across those two months, and tops the levels of pre-pandemic 2019 for the same period by 1%.
Still scarred by the effect of the coronavirus pandemic on their business, airlines will be all too happy to accommodate these wandering individuals. That, however, is a source of concern for the USTA, since times of strong demand "are a stress test that reveal the inadequacies of our current air travel system."
But they provide great opportunity for operators like Airbnb. When travelers fly, of course they must stay somewhere. Airbnb has become a common alternative to more traditional hotel accommodations, as it offers stays that are frequently cozier, more personable, and/or roomier. For many travelers, it is often the first -- or even only -- source of lodging choice.
Now what
It's not only the waning of the pandemic that has motivated people to leave their homes and venture far and near. Technology is making it far easier than it used to be to book accommodation and transport, and to explore new locations. The USTA might be concerned about the impact this could have, but Airbnb investors -- as well as others involved in the accommodation business -- are clearly feeling far more optimistic.
