The Business Of Airbnb, By The Numbers

Airbnb was one of the most highly anticipated IPOs of 2020.

After a trading surge, the company’s market cap topped the $100 billion mark. Now that the dust has settled, here are some key numbers behind the company’s unique business model.

The Last 5 Years

Since 2015, Airbnb has had an epic run.

With a market cap of close to $90 billion, they are one of the largest businesses in the travel and tourism space. However, there is still plenty of room to grow: Airbnb identifies their total addressable market (TAM) to be worth $3.4 trillion.

Metric 2015 2016 2017 2018 2019
Gross Booking Value ($ Billions) $8.1B $13.9B $21.0B $29.4B $38.0B
Annual Nights & Experiences Booked (In Millions) 72.4M 125.7M 185.8M 250.3M 326.9M
Revenues ($ Billions) $919M $1.6B $2.5B $3.6B $4.8B

Nights and experiences booked by customers have shot up 4.5x, from 72 million in 2015 to 326 million in 2019. At the same time, the gross dollar value of these bookings has surged from $8.1 billion to $38 billion.

No Shortage Of Space

Airbnb’s ability to scale its services is reflected by its room count, which is unmatched when compared to the hotel industry.

In 2019, Airbnb had nearly 5 million rooms available, a mammoth of a figure considering the next largest was Marriott at 1.3 million. The company is a giant thorn in the hotel industry’s side, and their room count is approximately the size of the five largest hotel chains combined.

A Shortage Of Profits

Despite a global presence and attractive numbers, the business of Airbnb is yet to be profitable.

Airbnb has lost money every year—and the company’s cumulative losses total $2.8 billion since 2008. Not surprisingly, those losses have been exacerbated during the pandemic, a common theme for all travel and tourism stocks. Airbnb had -4 million bookings in March, and these negative bookings helped lead to a -32% decline on their top line compared to 2019.

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Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...

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