Airbnb’s Recession Buffer
Skift Take
Airbnb’s focus on domestic and self-catering travelers positions it well in an unfavorable macro environment with increased demand for vacation rentals.
If you’ve read the various hot takes on the state of the housing market as indexed by Airbnb revenue, here are a few concerns you can put to rest. What will happen to the housing market in a recession is anybody’s guess, but speaking purely of Airbnb as a stock, the company has a few things going for it.
Firstly, the company offers lodging options at various price points, it focuses on domestic and younger travelers who self-cater, according to an analysis by AB Bernstein in its report Airbnb: A Long Stay. And in an unfavorable macro environment where travelers stick to domestic trips and self-catered accommodations — that's plus one for vacation rentals.
Specifically, Airbnb's resilience comes from longer stays, increased rental demand, and more hosts joining the platform to supplement their incomes. In a recessionary environment, lower rates may not significantly impact Airbnb if offset by higher demand, and the sustainability of high rates
