According to Jrj.com, the online travel booking giant$Airbnb (ABNB.US)$,$Booking Holdings (BKNG.US)$And.$Expedia (EXPE.US)$latest profit report shows that despite warnings from industry operators three months ago that the post-epidemic tourism boom was weakening, these companies have strong expectations for total booking volume, easing concerns in the market about declining travel demand.

Airbnb expects key indicators for bookings nights and experiences to grow by more than 8.5% in the third quarter, Wall Street expects 7.7%. In addition, Expedia has raised its full-year performance expectations, and booking holdings had also previously issued optimistic performance guidance. These positive indications from these companies contradict the travel slowdown expected by online travel companies, airlines, and resorts in the previous quarter.

In Thursday's shareholder letter, Airbnb stated that based on the strong momentum in September, the company had a good start to the fourth quarter, noting strong demand trends in both core and expansion markets. The financial report shows that Airbnb's booking nights and adjusted revenue in the third quarter exceeded expectations, with booking nights in the EMEA region growing slightly due to the Paris Summer Olympics. Latin America and the Asia-Pacific region continued to drive growth, achieving double-digit growth, with the number of active listings reaching a historical high.

Despite slow recovery in China's overseas business, the company expresses encouragement. Signs of slowing demand appeared in North America during the summer, but Airbnb announced that third-quarter bookings showed signs of recovery, with domestic travel in the USA still accounting for the vast majority of bookings in the region, along with rapid growth in non-urban destinations and large group travel.

Despite Airbnb's third-quarter net income of $1.37 billion, lower than analysts' expected $1.39 billion, the company attributed this to certain non-cash tax expenses, and warned that revenue growth in the first quarter of 2025 will be affected by leap year and earlier Easter.

Meanwhile, Expedia's total bookings reached $27.5 billion, up 7% year-on-year, higher than Wall Street's expected $26.7 billion. Customers booked 97.4 million room nights on Expedia's travel websites, also exceeding analysts' forecasts. About two-thirds of Expedia's revenue comes from the USA, serving as a strong indicator of disposable spending in the US.

The financial report shows that Expedia, headquartered in Seattle, reported earnings per share of $6.13 for the third quarter, exceeding analysts' expected $6.04. Although total revenue for the quarter grew by 3% year-on-year, reaching $4.06 billion, slightly lower than the expected $4.11 billion, international travel demand remains strong, especially in the Asia-Pacific region, driven mainly by affluent Chinese consumers' demand for cross-border travel.

Looking ahead, Expedia is optimistic about the business outlook for 2024, increasing its total booking growth forecast from the previous 4% to 5%, demonstrating confidence in the tourism market's recovery.

It is worth mentioning that, a few months ago, Expedia's CEO Ariane Gorin warned that travel demand would weaken, and the company has lowered its full-year performance expectations twice, but the situation has improved before Thursday's earnings report.

In contrast, the travel company Booking Holdings, in last week's earnings report, raised its full-year total booking volume expectations and reported that third-quarter room night bookings exceeded analysts' expectations.

The financial report shows that in the three months ending September 30, room bookings grew by 8%, reaching 0.299 billion. This increase exceeded Wall Street's estimates and its own guidance. The total travel bookings, including taxes and fees, amounted to 43.4 billion US dollars, compared to the expected 41.4 billion US dollars. The adjusted earnings per share was $83.89, while investors expected $77.27.

Booking's CFO Ewout Steenbergen stated that encouraged by these results, Booking raised its full-year performance expectations, expecting a total booking growth of around 8%, with revenue growth slightly below 10%. The company's forecast for the fourth quarter performance also significantly exceeds analysts' expectations.

Overall, in the past few months, the entire industry has shown signs of slowing down as price-sensitive consumers have controlled their travel spending. After the initial wave of post-pandemic vacation frenzy driving several quarters, online travel giants such as Booking, Expedia, and Airbnb have issued more moderate outlook forecasts, citing changes in consumer behavior. This includes choosing lower-rated hotels, planning shorter trips, and booking more last-minute reservations. This trend especially makes it difficult for companies to predict demand and sales.

Editor/ping