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Airbnb and the post-pandemic potential travel explosion

The coronavirus pandemic has been a massive obstacle for the travel industry, as staying home orders during 2020 were heavily imposted on most countries across the globe.

As vaccines are rolling out across the world, staying home restrictions are gradually been lifted, and people are beginning to feel the return to some sort of normality, the travel industry is the next sector that is going benefit from it.

Hotels, casinos, restaurants, cruise lines, airlines, entertainment parks and other tourist-related sectors and companies are getting ready for a massive exodus from people's kitchen tables and living rooms, to as far away as their imagination (and pocket book) can take them.

Among those, Airbnb, Inc. (ABNB) is a company that is not only very well positioned to profit from the potential travel explosion, but also found ways to solidify their marketshare position, improve their platform and expand their services.

The company has recently upgraded the user agreements to provide a better experience for both hosts and guests. "We are seeing three fundamental shifts in travel as people become less tethered and more flexible," said Brian Chesky, Co-Founder and CEO of Airbnb. "People can travel anytime, they are traveling to more places and they are staying longer. The lines between travel, living and working are blurring and we are upgrading our service to make it easier for people to integrate travel into their lives, and for more people to become Hosts."

2020 was an horrific year for Airbnb: sales where down 39% from the prior year as the company sold $17.9 billion in gross bookings compared to about $38 billion in 2019 (and around $21 billion in 2017). During the first quarter of 2021, Airbnb’s has showed a huge comeback.

While revenue grew 5%, gross booking rose over 50% year over year, and above the $7.87 billion FactSet consensus (Reference Link). In comparison, Marriott International, the largest hotel chain in the world, has seen their revenue decrease a staggering 51% in the same period.

Hotels will always have a place in the tourist arena. However, Airbnb has several advantages over traditional hotel accommodations (out-of-reach locations, untapped markets, easy hosts recruit and expansion, wider range of prices), that will continue to propel the company forward.

In other words, so much more potential can, and will, be unleashed from Airbnb's disruptive force.

Watch this video to get the technical insights.

Good trading!

Disclaimer: Luca Moschini owns shares of Airbnb, Inc. (ABNB)

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