Airbnb hopes to benefit from the growing popularity of home rentals during the Coronavirus Pandemic with his $ 3 billion initial public offeringbut the sun might set soon. An important question is whether travelers will continue to book short-term rental apartments or return to hotels as the health crisis deepens.
While rental apartment bookings have soared over the summer, some executives are hinting at a weakening of fall and winter trends, claiming that there will be a return to hotels in 2021 once a vaccine is available.
BTIG analysts tracked real-time data and said Airbnb has weakened so far in the fourth quarter, with absolute volume trending back towards May.
“There is a potential for a double drop in booking volume here, which is likely a factor [Airbnb’s] Decision to go public now, “Steven Jankowski, growth director for data analytics company AllTheRooms, told CNBC.
Postings CEO Glenn Fogel also sees bookings for alternative accommodations dropping. consequences Third quarter earningsThe largest online tour operator, released earlier this month, said home rentals accounted for a smaller share of bookings in the third quarter than in the second quarter.
Fogel told CNBC that hotel bookings were improving as the number of coronavirus cases fell over the summer. Expedia CEO Peter Kern made a similar statement about the call for results.
While travel experts expect an increase in cancellations this holiday season, such as Covid-19 cases rise to record levelsMost still anticipate a possible recovery in travel in 2021 once vaccine becomes more widely available.
TripAdvisor CEO Steve Kaufer said he sees a vaccine that will help both home rentals and traditional hotels, especially when travelers visit places that have become less popular during the pandemic.
“As the great vaccine news that comes out as we and so many other companies plan a robust travel recreation, especially in the recreational sector, we know that demand will return to all of the wonderful places everyone loves to go – the big cities, the tours who have favourited activities, “Kaufer said Tuesday on CNBCs “The exchange.” “And of course there is no shortage of fantastic properties, hotels and rentals when you travel to our wonderful cities around the world.”
According to data from STR, a global hotel research company, the average hotel occupancy rate across the country was over 50% in August. Since then, hotel bookings – much like home rentals – have declined as states reintroduce public health restrictions and seasonal factors re-enter.
In this photo illustration a man looks at the Airbnb website on April 20, 2020 in Katwijk, the Netherlands.
Yuriko Nakao | Getty Images News | Getty Images
While the titans of the industry await approval of a vaccine that comes with a surge in travel expenses, Airbnb’s outperformance this year is remarkable. “Airbnb showed clear strength in domestic travel, travel closer to home and longer travel,” said Jake Fuller, director and analyst for digital services at BTIG.
In gross bookings for the first nine months of 2020, Airbnb is down 39%, Booking Holdings is down 63%, and Expedia is down 65% year over year. While the comparison is not apples with apples, as Expedia and Booking Holdings offer flights and hotels in addition to home rentals, analysts reflect the lynchpin of consumers in vacation rental for the past six months, according to analysts.
Data from AllTheRooms also shows that Airbnb beat one of its main competitors, Expedia’s VRBO, in the rental nights booked in 2020.
Book short-term rentals with Airbnb vs. Vrbo.
With Airbnb going public before the end of the year, investors will see how preferences change and whether homes or hotels become the first choice. Although travel chefs are expecting a return to hotels, AllTheRooms’ Jankowski believes travelers will continue to book rental apartments for the sake of social distancing.
“Going forward, Airbnb looks well positioned as short-term rentals are likely to continue to be preferred over hotels due to the social distancing factor, even if travel hopefully picks up again in 2021 with a vaccine,” Jankowski said.