Market looks to Airbnb Q1 results as barometer of travel rebound

US: Airbnb Inc is set to release its Q1 financial results on May 13, after the market closes.

The company’s earnings have been hit by Covid travel restrictions butthe market, and the wider travel industry will be looking at its Q1 results as a barometer for travel’s rebound from the pandemic.

Airbnb’s overall net nights and experiences booked have remained largely stable across H2 2020 despite Covid-19 resurgences. This resilience may be supported by an increase in domestic travel, which partially offset the fall in cross-border travel.

With strong US domestic travel demand, Airbnb’s average daily rate (ADR) has stayed strong, trending even higher than pre-Covid levels in some areas.

Pent-up demand for travel in H2 2021 may also be a strong growth catalyst for Airbnb.

Airbnb’s current forward price-to-sales ratio stands at 17.32, commanding a significant premium over its competitors in both the online travel group and the lodging industry. Its share price has fallen significantly over the last week to $151.21 today.