Airbnb reports first annual profit as travel demand remains strong

Airbnb recorded its first annual profit in 2022. As per a report in the Wall Street Journal, the company reported a profit of $1.9 billion against a loss of $352 million in 2021. Boosted by growth in cross-border travel, the fourth quarter profit of the company stood at $319 million, well ahead of analyst estimates of $171 million. The short-term rental company stated that its full year revenue grew 40 percent to stand at $8.4 billion, as Americans took advantage of a strong dollar to visit foreign locations and demand for European intercontinental travel grew. Airbnb Inc saw its first annual profit last year, boosted by a growth in cross-border travel in the fourth quarter over previous years. Airbnb stated that the strong travel demand benefited it, even after high inflation and recession fears, as mentioned in a report by The Wall Street Journal. A profit of $1.9 billion in 2022 was reported by the vacation rental company, after it lost $352 million in 2021. The full year revenue of the company grew 40 percent to stand at $8.4 billion. The advantage of a strong dollar was taken by the Americans for flying abroad and the European intracontinental travel grew, as per the report. Airbnb hosts saw increasing demand for stays in urban centres, which had been a weak spot in the earlier stages of the coronavirus pandemic. The firm warned that it anticipates increasing “downward pressure” on average nightly room rates in 2023, as per the Wall Street Journal. Airbnb attributed this to an increase in booking cheaper places and new discounts. It still projected revenue for the first quarter of 2023 to be in the range of $1.75 billion to $1.82 billion, exceeding the analyst estimates of about $1.7 billion. The company reported that it earned an interest of $103 million on its own cash and on customers’ funds in the fourth quarter, an increase from just $4 million a year earlier. This is equivalent to nearly a third of the firm’s total profit for the quarter. According to Airbnb, it added 900,000 listings in 2022, excluding China. Airbnb has been increasingly focused on adding more hosts to its platforms in its attempt to increase revenue. The company revealed several changes last fall to make it easier for people to become hosts. The revisions include matching people with more experienced hosts who can provide them advice. The rental corporation also increased its damage protection. It has also rolled out a new listing service for Airbnb-friendly rental apartments in a bid to entice more landlords to enable short-term sublets. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.