May 8 (Reuters) – Vacation rental company Airbnb reported higher quarterly profit on Wednesday, boosted by an increase in travel in international markets as bookings in North America slowed during the period.
In the first quarter, lodging companies saw travel demand in regions outside North America boost profits as travel accelerates in Asia-Pacific and Latin America. The company said it expects steady growth throughout 2024, driven by travel demand centered on international events.
Room nights and experiences booked in the first quarter increased 9.5% year over year to approximately $133 million, driven by 21% and 19% growth in bookings in Asia Pacific and in Latin America, respectively. The company said bookings in North America “slowed slightly” during the quarter.
The San Francisco-based company reported net income of $264 million, or 41 cents per share, for the quarter ended March, compared with $117 million, or 18 cents per share, during the same period in 2023. .
Total first-quarter revenue increased 18% year-over-year to $2.14 billion.
The average cost per night in an Airbnb or average daily rate was $173 during the reporting quarter, an increase of 3% from the previous year. The company saw an increase in shorter stays and entire house bookings, which generated higher margins.
It forecast second-quarter revenue of between $2.68 billion and $2.74 billion, below analysts’ estimates of $2.74 billion, partly due to exchange rates and the timing of Easter which was beneficial in the first quarter, but could weigh on profits in the second quarter. , the company said.
Looking ahead to the summer, Airbnb said it expects year-over-year revenue growth to accelerate in the third quarter, in part due to travel demand centered around the Olympics and of the European Cup. (Reporting by Aishwarya Jain in Bengaluru and Doyinsola Oladipo in New York; editing by Shailesh Kuber)
