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Airbnb bookings recovered to 70% of pre-pandemic levels, stock up by 23%

Airbnb bookings recovered to 70% of pre-pandemic levels, stock up by 23%
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Written by Harry Johnson

Airbnb’s sales are projected to increase by 37% in 2021

  • Airbnb stock is trading at $177.90 per share as of March 4, 2021, marking a 22.77% increase year-to-date (YTD).
  • Since its 2008 launch, Airbnb has generated approximately $110 billion for the hosts using its platform
  • Airbnb stock up by 23% in 2021, trading at more than two times its IPO price

Since the company’s IPO in December 2020, Airbnb’s share price has rallied remarkably. It is trading at $177.90 per share as of March 4, 2021, marking a 22.77% increase year-to-date (YTD). The figure was more than 2.5 times its IPO price of $68 per share.

Based on the latest data, travel spending in the US declined by 42% in 2020 to $679 billion. Though it has bounced back to some extent, it remains below pre-pandemic levels.

According to the research data, in tandem with its share price growth, Airbnb also saw its market value soar to $110.71 billion as of March 4, 2021. That was higher than the market value of rivals Expedia ($20B), Booking Holdings ($93B) and TripAdvisor ($5B).

Since its 2008 launch, Airbnb has generated approximately $110 billion for the hosts using its platform. Its revenue grew fourfold between 2015 and 2019, going from $919 million to $4.8 billion. As of April 2020, its bookings were down by 72% YoY.

But by June 2020, domestic reservations had more than doubled to reach 80% according to The Economist. Stays within 200 miles from home accounted for 56% of bookings, up from 31%. By the end of January 2021, bookings had recovered to 70% of pre-pandemic levels.

Based on its estimates, Airbnb has a total addressable market of $3.4 trillion. Its gross booking value in 2019 was $38 billion, equivalent to 1% of its total potential. However, at $177 per share and $111 billion valuation, the company is trading at approximately 31 times its consensus 2021 revenue.

Airbnb’s sales are projected to increase by 37% in 2021. By comparison, Expedia’s revenue is set to soar by 50% in 2021 and 35% in 2022. At its $23 billion valuation, Expedia is trading at thrice its projected 2021 revenue.