Airbnb's Path to Becoming the Amazon of Travel
Airbnb (NASDAQ: ABNB) not only offers rentals on their platform, but it also has limitless untapped opportunity to offer more experiences and activities alongside travel booking. In this clip from "Ask Us Anything" on Motley Fool Live, recorded on March 23, Motley Fool contributors Matt Frankel, Jose Najarro, Jamie Louko, and Jon Quast discuss Airbnb's addressable market opportunity and how it could become the Amazon (NASDAQ: AMZN) of travel.
Matt Frankel: It invented its space, and the thing I like most about Airbnb is that its addressable market is literally every home in the world. Its addressable market opportunity is short-term vacation rentals, long-term vacation rentals, which not only that, anything that you could sell that's adjacent to those products, they've started selling experiences on their platform. For example, if you book an Airbnb in Florida, you can book a snorkeling trip to go along with it. So experiences are one thing. Restaurant references are another thing that they could potentially do. Because I know every time I stay at an Airbnb, I want to know what the best local restaurants are. Pretty much anything you could refer travelers to in the world is their addressable market opportunity and it's so big, it's tough to even quantify. They say just between short-term, long-term, and experiences, that's about a $3.4 trillion annual market today. Before all this inflation, Airbnb room rates are up 20% year-over-year. So this is a multi-trillion dollar market opportunity, and Airbnb is by far the leader in this space and they're just going to continue to grow. I can see them being like the Amazon of travel.
Source Fool.com
