Why the Pandemic Hasn't Kept Airbnb Down
Online vacation rental hub Airbnb (NASDAQ: ABNB) seems like an unlikely candidate for pandemic success, but its business has shown resilience and growth over the past few turbulent years. Amid COVID-19's infections, cancellations, border closures, and quarantines, and the hassles they've imposed on the travel that Airbnb depends on, the company's ability to even keep pace with the crowd might be a better sign of its strength than you'd think. Here's what you should know as we head into Airbnb's Q4 earnings on Feb. 15.
The company is both a market disruptor and market leader, with more rooms listed than the top five international hotel chains combined. Airbnb also has an extremely strong brand image. In 2016, YouGov BrandIndex ratings found that Airbnb customers are the strongest advocates of any brand, beating out several other travel brands in the top 10. Word-of-mouth recommendations are one of the most effective forms of advertising, so the dedication Airbnb users have in recommending the service to others is a serious asset.
In 2021, Airbnb launched its largest ad campaign in approximately five years, a sign that the company is committed to performing through the pandemic instead of going with the flow. "Made Possible By Hosts," which was expected to reach 300 million people, was successful in raising Airbnb's YouGov Ad Awareness level to an all time high. YouGov's Ad Awareness metrics, which measure the exposure consumers have to advertisements, have tracked Airbnb since 2014; awareness initially fell during the pandemic, but recovered and surpassed previous levels thanks to the campaign. Airbnb was able to cut its total marketing budget by 45% as it shifted toward marketing its overall brand in the first three months of 2021, while reducing its spending on marketing designed to get users to book rooms or take other specific actions.
Source Fool.com
