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International travel search volumes have been rising as countries, including the United States, start to ease pandemic-related restrictions for fully vaccinated visitors.
Easing lockdowns have helped Airbnb recover from a steep drop in business early last year as leisure-seeking domestic travelers booked homes away from major cities. It now expects cross-border travel to further boost its revenue.
“We are seeing recovery in both longer-distance and cross-border travel this year, while domestic and short-distance travel continue to be more popular than 2019 levels,” the company said in a statement.
The vacation rental said the recovery was dominated by North America and Europe – regions with higher average daily rates. It rose 15% to about $149 in the third quarter from a year earlier.
For the Thanksgiving week in the United States, Airbnb said as of Sept. 30, nights booked are 40% higher than same period in 2019.
With the pandemic causing a permanent step up in the lodging industry mix, analysts expect Airbnb to continue to grow in the alternative accommodation market, in which it has a more than 50% share among global online travel agents.
In the third quarter, gross bookings rose 48.8% to $11.9 billion. However, it missed market expectations of $12.23 billion.
Revenue rose 66.7% to $2.24 billion and beat estimates of $2.05 billion. Net income surged nearly four times to $833.9 million from a year earlier.
Airbnb forecast fourth-quarter revenue between $1.39 billion and $1.48 billion. Analysts on average estimated $1.44 billion, according to Refinitiv data.
