Business

Brazil and Mexico show "resilience" in domestic travel, says Airbnb

In Latin America, the pace of nights booked remained below 2019 levels but was relatively stable during the fourth quarter of 2020, said the company

Photo: Reuters/Charles Platiau
  • Airbnb’s overall revenue fell 22% to $859 million;
  • Nights and experiences booked at Airbnb dropped 39% to 46.3 million units;
  • In Latin America, the pace of nights booked, prior to cancellations and alterations, remained below 2019 levels but was relatively stable during the quarter;
  • “Travel is coming back and we are laser-focused on preparing for the travel rebound,” said co-founder and CEO Brian Chesky.

Airbnb announced on Thursday its fourth quarter and full-year 2020 financial results. In Latin America, the pace of nights booked, prior to cancellations and alterations, remained below 2019 levels but was relatively stable during the quarter, the company informed.

“We saw resilience in domestic travel of certain countries, such as Brazil and Mexico,” stated Airbnb in a letter for shareholders.

The company reported better-than-expected gross bookings in its first quarterly earnings report since going public. Leisure travelers in the company’s biggest market, Noth America, stepped out to nearby locations that could be accessed by a car and are within 50 miles, lifting daily booking rates up by 13%, Airbnb said.

“Our performance in 2020 showed that Airbnb is resilient and inherently adaptable,” said Airbnb co-founder and CEO Brian Chesky. “Travel is coming back and we are laser-focused on preparing for the travel rebound.”

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The company’s gross bookings fell 31% to $5.9 billion in the fourth quarter ended Dec. 31, but beat market expectation of $5.17 billion, according to IBES data from Refinitiv.

Nights and experiences booked at Airbnb dropped 39% to 46.3 million units, but was better than Wall Street’s estimate of a 47% drop.

Airbnb’s overall revenue fell 22% to $859 million, while adjusted loss before interest, taxes, depreciation and amortization shrank to about $21 million from $276.4 million, a year earlier, helped by cost cuts.

“Our single priority in 2021 is to prepare for this travel rebound, perfecting our existing product by improving the entire end-to-end experience of our core service for both Hosts and guests,” added the company.