Q4 2023 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial Price$136.55October 1, 2023
Final Price$136.14December 31, 2023
Price Change$-0.41
% Change-0.30%
- Airbnb's unique and growing supply is outpacing competitors, allowing it to take market share from both traditional hospitality and competitors. In 2023, active listings grew by 18% year-over-year, reaching over 7.7 million active listings by year-end. This healthy supply growth is seen as a leading indicator of future demand growth. ,
- Airbnb sees significant growth potential in underpenetrated international markets, particularly in Asia and Latin America. By applying their international expansion playbook, they've seen success in countries like Korea and Brazil (Brazil nearly doubling since 2019), and believe they can achieve U.S.-level penetration in these regions, representing a massive growth opportunity. , , ,
- Airbnb is focused on expanding beyond its core services and improving its platform to attract more users. Initiatives like lowering prices (average nightly price for a 1-bedroom down 2% year-over-year while hotel prices are up 7%) and enhancing product optimization and quality are driving increased conversion and attracting first-time bookers, leading to sustained growth. ,
- Challenges in penetrating Asian markets, particularly China, could limit Airbnb's growth potential in the region. Brian Chesky acknowledged that internet companies have struggled in Asia and that Airbnb no longer has a domestic business in China.
- Slowing growth due to tough year-over-year comparisons may impact future performance. The company expects moderating growth in room nights booked in Q1, partly due to harder comps from strong pent-up demand in the prior year.
- Increasing supply growth could lead to downward pressure on prices and potential margin compression. With supply growing 18% year-over-year and the company encouraging hosts to lower prices for increased affordability, there may be pressure on average booking rates and margins.