Airbnb in its IPO prospectus filed Monday with the US Securities and Exchange Commission highlighted its reliance on its guests continuing to travel - just not as far as th
ey did before the pandemic.
“Against an otherwise highly negative travel backdrop, there are several areas of our business that have shown resilience, notably, domestic travel, short-distance travel, travel outside of our top 20 cities, and long-term stays,” the company said in the filing. “While we believe that travel will change as a result of Covid-19, the adaptability of our business suggests that we are well-positioned to serve this dynamic market as it continues to evolve and recover.”
Airbnb describes as a stay within 50 miles of where a guest lives, have shown extreme resilience, according to its filing. Bookings within a 500-mile radius of a guest’s home have started to recover, too, it said.
Globally, domestic nights and experiences - bookings for tourism activities - made up 77 per cent of Airbnb’s overall bookings in September, compared with 52 per cent in January.
“Domestic travel quickly rebounded on Airbnb around the world as millions of guests took trips closer to home,” it said. “Stays of longer than a few days started increasing as work-from-home became work-from-any-home on Airbnb.”
The elasticity of Airbnb’s supply and its ability to quickly pivot to domestic travel has allowed it to fare better than its rivals.