Airbnb (NASDAQ:ABNB) stock has had an better year than anyone might have imagined when the pandemic took hold.
The pandemic has been extremely hard for the hotel and tourism industry.
Since none of us were leaving our homes for a holiday, businesses in the tourism industry suffered the most.
The losses have been large but there is new hope rising as we see the impact of vaccination and the travel industry slowly picking up.
However, ABNB managed $3.4 billion in revenue and ended the year well even though Airbnb looked vulnerable at a time. ABNB stock has had a wild ride and it went from $140 in December 2020 to $219 in February 2021 and is close to $149 today.
The stock has tremendous growth potential and as countries open up travel, the demand will be high. I am bullish on ABNB stock. Let’s take a look at two catalysts driving the stock up.
A Closer Look at ABNB Stock
Airbnb came up with more than 100 innovations and upgrades to its service as the pandemic wound down. The company recently announced an upgrade that can change the entire booking experience for people, including flexibility in booking, dates, destinations and matching.
Hence, customers get a wider selection when they look for a place to stay or a destination to visit. Other upgrades include easy hosting, quick checkout and a clear cancellation procedure.
With the flexibility and additional upgrades, the company is moving toward providing a unique personalized experience to travelers.
People who were hesitant to travel due to the virus can now opt for flexible dates and continue with their plans. There couldn’t be a better time for this upgrade.
Remote Work Is the “New Normal”
The virus has brought about a cultural change in the professional world. Many people have been working from home since 2020 and much of it is going to continue in the future.
Organizations are looking at hybrid models where they allow employees to work from home more often. Remote work is here to stay, which can have a huge impact on Airbnb. As employees realize that they do not need to stick to a particular location to live and work, they are looking at the idea of traveling while working.
Due to the pandemic and remote work, people are staying longer on their trips. The company saw stays of 28 days and longer increase from 14% in 2019 to 24% of nights booked in Q1 2021.
This will allow workers to travel easily and enjoy extended weekends. It will work as a tailwind for Airbnb because it offers a significant advantage over hotels.
The company hosts several properties that are ideally located and well-equipped with kitchens and workspaces, making many AirBNB properties better choices than staying in a hotel. This could lead to a surge in bookings for longer stays during the year.
The Bottom Line on ABNB stock
With the effects of the pandemic subsiding and travel resuming, we can see the bright future of ABNB stock. The company can grow at a pace like never before.
The stock is far from its peak today and this is an opportunity to add it to your portfolio. Travelers are going to love the new features that offer hosts and guests to list their properties and make flexible bookings, respectively.
The company could report new highs in revenue for Q2 and it will take ABNB stock higher.
Now is the time to book the stock.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
