Booking Holdings expects 270 million room nights of short-term rental this year
Airbnb's growth rate on room nights sold year over year was about 45% in the first quarter and the figure has fallen to the 30% to 35% range in the last few weeks.
Airbnb internally projects it will sell 255 million to 265 million “room nights”—a measure of occupancy—this year, although it hopes to lift that number to nearer 280 million, according to a person briefed on the matter. That’s in the same ballpark as Booking Holdings, which includes Booking.com and Priceline.com, whose executives have told people in the industry they expect to sell 270 million room nights of “alternative accommodations,” such as apartments, bed and breakfasts, and villas this year.
Earlier this year, Booking poached a key Airbnb executive to run its “homes” business. Booking.com’s strength raises the question of whether Booking—whose $100 billion market capitalization overshadows Airbnb’s $31 billion valuation—will slow Airbnb’s growth in future years.
Airbnb pulled in $2.6 billion in revenue last year after a relatively slow first half of the year, but a record third quarter, one of the people said. It expects to generate between $3.5 billion and $4 billion this year, the person said. It is projecting to be profitable, before interest, taxes, depreciation and amortization, for the second year in a row, another person close to the company said.
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