The global travel industry was crushed during the pandemic, but the latest travel survey from Bank of America suggests Airbnb Inc (NASDAQ:ABNB) could be a big winner from a rebound in travel demand this year.
Pent-Up Demand: Bank of America analyst Justin Post said last week that 62% of survey respondents plan to travel more than usual in the next 12 months, suggesting 2022 travel demand could exceed 2019 pre-pandemic levels. In addition, 41% of respondents said they plan to make up for canceled pandemic travel plans over the next two years.
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Post said he expects a big rebound in hotel bookings this year, but 37% of respondents said they prefer alternative accommodations instead.
One of the biggest concerns among respondents was the cost of travel, especially with gas prices near all-time highs. In fact, 41% of travelers said gas prices are impacting their travel plans, and 28% said they will take shorter trips because of higher gas prices.
When it comes to winners and losers among online travel stocks, Post said Airbnb continues to gain market share. Roughly 19% of travelers said they are "very likely" to book their next vacation accommodations through Airbnb, up from 15% in the fourth quarter of 2020.
How To Play It: Among alternative accommodation sites, Airbnb was the preferred choice by 34% of respondents, followed by Booking Holdings Inc (NASDAQ:BKNG) platform Booking.com at 20% and Expedia Group Inc (NASDAQ:EXPE) platform VRBO at 8%.
"Continued momentum for Airbnb was a key takeaway with growth in AA usage and intentions to book on the site," Post said.
Bank of America has a Neutral rating and $198 price target for Airbnb.
Benzinga's Take: After two years of quarantines, outbreaks, mask rules and travel restrictions, it's no surprise Americans are itching to finally get back out on the road and enjoy traveling without the stress of dealing with COVID-19 restrictions. Investors can expect booming summer travel demand this year, even with prices at the pump soaring.
Photo: Courtesy of news.airbnb.com
