Airbnb's Slow Growth, IHG’s Good Growth and Travel’s Recession Worries
Skift Take
Key Points
- Airbnb experienced slower growth in Q2 with shorter lead times and reduced U.S. demand, but saw an increase in active listings.
- IHG reported stable demand outside China and a rise in revenue per available room, despite a slight decline in China.
- The Skift Travel 200 index indicated travel stocks are vulnerable to recession, with cruise lines and accommodations performing best in 2024, but no travel subsector is in the green.
Summary
Airbnb's growth slowed in the second quarter with shorter booking lead times and reduced demand from U.S. guests, despite an increase in active listings. InterContinental Hotels Group (IHG) reported stable demand outside China and a rise in revenue per available room, although China saw a slight decline. The Skift Travel 200 index highlighted travel stocks as vulnerable to recession, with cruise lines and accommodations performing best in 2024, yet no major travel subsector is in the green.
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Episode Notes
Airbnb’s second-quarter earnings revealed the company’s growth slowed down in several key areas, writes Executive Editor Dennis Schaal.
The company forecasts that guests are making bookings with shorter lead times, and it is seeing “some signs of slowing demand from U.S. guests.” Airbnb said that in the third quarter, it expects a “sequential moderation” in year-over-year nights and experiences booked compared with the 9% growth in the second quarter.
But Schaal notes Airbnb can point to many positives during the second quarter, including an increase in active listings from 7 million last year to 8 million.
Next, InterContinental Hotels Group said it’s not seeing signs of weakening demand outside of China, reports Senior Hospitality Editor Sean O’Neill.
IHG CEO Elie Maalouf said the company hasn’t been impacted by a possible recession yet. IHG added the post-pandemic tourism surge has moderated and normalized to pre-Covid levels. The company reported a 3% rise in its revenue per available room — a key industry metric — during the first half of this year.
While IHG saw its revenue per available room fall by 2.6% in China, O’Neill notes that drop didn’t dramatically impact its overall performance.
Finally, travel stocks were the best performers on a bad day overall for the broader U.S. stock market this Monday. However, travel has been the worst performing group of stocks over the past year, making it one of the sectors most vulnerable to a recession, writes Head of Research Seth Borko.
Borko notes concerns about a recession are clear in the performance of the Skift Travel 200, our own index of travel stocks. Cruise lines have been the best performing travel sector in 2024, followed by accommodations. Even though these businesses outperformed their travel peers, there is still no major travel subsector in the green so far.
Photo Credit: The exterior of the Holiday Inn Savannah Historic District, an IHG property. IHG
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