10 Best Travel Stocks To Buy Right Now

3. Airbnb, Inc. (NASDAQ:ABNB)

Number of Hedge Fund Holders: 54

Airbnb, Inc. (NASDAQ:ABNB) is an international online platform that connects people looking for places to stay with those who have space to rent out. Guests can browse host listings and book a place to stay directly through the Airbnb website or app. Unlike traditional hotels, the company offers a wide variety of accommodations, catering to different preferences and budgets. This includes everything from private rooms in someone’s home to entire houses.

The company has been actively upgrading its platform to streamline the process of listing and booking, thereby enhancing the overall user experience. Over the past three years, Airbnb, Inc. (NASDAQ:ABNB) has launched more than 535 new features to improve user experience. Recent upgrades include personalized app features and enhanced listing quality, with over 300,000 low-quality listings removed to ensure better guest experiences. Moreover, the company has rolled out more than 50 upgrades in 2024 alone. These efforts have turned out to be fruitful as during the fiscal third quarter of 2024, the company witnessed an increase in bookings through the Airbnb app, which now accounts for 58% of total nights booked, up from 53% last year.

The company generated $3.7 billion in revenue, marking a 10% increase compared to the same quarter last year. This growth was attributed to a steady rise in nights and experiences booked, which totaled 123 million for the quarter. Management noted that it is experiencing a rise in first-time bookers, particularly among young travelers. Looking ahead to Q4, Airbnb, Inc. (NASDAQ:ABNB) anticipates continued growth in bookings despite potential challenges from tougher year-over-year comparisons. The company plans to introduce more features aimed at enhancing user experience and expanding its market presence globally.

Polen Focus Growth Strategy stated the following regarding Airbnb, Inc. (NASDAQ:ABNB) in its Q3 2024 investor letter:

“Airbnb, Inc. (NASDAQ:ABNB) declined in the period on concerns around a weaker demand outlook for the quarter as well as increasing marketing spend planned for the second half of 2024, pressuring near-term margins. Given the company’s exposure to the health of the consumer and related willingness to spend on leisure travel, we believe it’s important to take a step back to see the larger picture. Global accommodations have been and will likely continue to be a mid-single-digit growth market. Still, as private rentals become increasingly mainstream and the dependability of those private listings improves, we would expect private rentals to continue to gain market share. We continue to see Airbnb as a likely double-digit revenue grower over the next five years, and with modest margin expansion, we could expect mid-to-high-teens earnings growth.”