Tag Archives: accommodations

Airbnb’s first profits since its IPO could be an indicator for the travel industry in 2021 | Instant News


Airbnb Inc.’s business was decimated by the coronavirus pandemic, but quickly rebounded to the point that it had one of the biggest initial public offerings of 2020. Now is the time to find out what is expected. for 2021. Airbnb ABNB, -5.19% will report financial results for the first time since going public on Thursday afternoon, ending a blistering year for the company and a difficult year for the travel industry. So far, it appears that the online accommodation booking platform has been better positioned to deal with the pandemic than other companies in the travel industry, as travelers have finally sought out getaways near their homes where they could. avoid other people. Airbnb “has shown it to be more resilient to this particular shock of traveling,” said Tom White, analyst at DA Davidson. Airbnb reported third-quarter profit of $ 219 million, in part thanks to aggressive cost-cutting measures it implemented, on revenue of $ 1.34 billion – its second largest quarter never recorded. But an increase in COVID-19 cases in the fourth quarter led to further travel restrictions, which weighed on other companies in the industry, such as Expedia EXPE, -0.73%, and could also be reflected in Airbnb results – Analysts expect less than $ 750 million in fourth quarter revenue. The prospects offered by Airbnb could be greater for Airbnb and the travel industry. Airbnb released a report at the end of January in which it cited the results of its own survey as saying, “A majority of Americans (54%) have already booked, are currently planning to travel, or are planning to travel in 2021.” It remains to be seen whether travelers will still be pitted against Airbnb’s main competition: hotels. “Unless there is a structural change in traveler behavior, the change in preference is likely to be gradual, especially when hotels are back on a level playing field,” KeyBanc Capital Markets’ Justin Patterson wrote in a recent note. What to expect Profits: Analysts polled by FactSet are forecasting an average loss of $ 8.41 per share, largely thanks to the equity compensation costs of Airbnb’s IPO. Estimize, which brings together estimates from analysts, hedge fund managers, executives and more, expects a loss of $ 6.09 per share on average. Revenue: Analysts are expecting an average of $ 739.4 million in revenue, according to FactSet. The estimate is $ 775.9 million. Stock movement: Airbnb shares gained 35% during their period in public markets, while the S&P 500 SPX index, -0.49%, rose 6.5% during this period. a quarter-over-quarter slowdown in the fourth quarter in Europe and “lingering weakness” in the first quarter. But they said they believed Airbnb would withstand a downturn better than other online travel companies “given its focus on alternative accommodation inventory.” Growth: Airbnb continued to outperform hotels and OTAs in December year over year, KeyBanc analysts wrote in a note, which also said Airbnb and its smaller rival Vrbo had experienced positive growth year-over-year spending in January. The CFRA said in a note that it expects a strong rebound in bookings in 2021, including monthly bookings exceeding previous peak levels by the end of the summer. Regulatory risks: Airbnb faces bans and restrictions on stays or listings in different regions of the world. In his home country, he may also be affected by efforts to amend or reject section 230 of the Communications Decency Act, which, among other things, protects him and other companies based in line, of any responsibility for the words and actions of their users. Sucharita Kodali, an analyst at Forrester, said that if Section 230 “was canceled, it would dramatically change all markets.” Without Section 230, she said Airbnb would have “a lot more than it needs to master,” as it could potentially face lawsuits for rental clauses, property damage and violence. Of 29 analysts polled by FactSet, 10 have a buy rating on Airbnb stock, while 16 have a hold, two say sell and one considers the stock’s overweighting. The average price target was $ 164.65 on Monday, when the stock closed at $ 195.34. .



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Wyndham Destinations buys travel and entertainment from Meredith for $ 100 million | Instant News



Wyndham Destinations Inc. purchases Travel + Leisure publication from Meredith Corp. for $ 100 million, in a deal that would expand Wyndham’s business beyond its core vacation ownership business. In addition to its eponymous magazine, Travel + Leisure offers member-based travel services. Wyndham manages 230 timeshare resorts, with more than four million members in its lines of business. The combined company is said to have 18 resort, travel club and lifestyle travel brands. Meredith will continue to publish Travel + Leisure under a 30-year renewable license agreement, with Travel + Leisure staff remaining as Meredith employees, the companies said. Wyndham Destinations, which separated Wyndham Hotels & Resorts Inc. in 2018, plans to change its name to Travel + Leisure Co. and trade under the symbol “TNL” from mid-February. The aim of the merged company will be to expand its travel club business, offer new travel services and expand licensing agreements. .



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Try These 6 Travel & Leisure Stocks To Play A Vaccine-Driven Demand Rebound | Instant News


Business trips fell off a cliff during the pandemic, dragging air traffic with them. The Las Vegas Strip, usually teeming with conference attendees and vacationers, looks more like a quiet resort than a hive of 24/7 activity. No cruise ship – apart from a few latecomers hit by Covid – have only boarded or entered US ports since mid-March. Even domestic pleasure travel, a relatively bright spot in summer and fall, is facing a wave of Covid-19 cases and a new one ….



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