Airbnb, Inc.’s ( NASDAQ: ABNB ) much-anticipated Q3 financial report reveals that the international accommodations company posted its strongest quarter since inception in 2021, with revenue surpassing $2.2 billion. The figure topples 2020 results by nearly 70% year-over-year and surpasses the same pre-pandemic period in 2019 by 36%. Company shares surged on the news as investors identified the record numbers as a sign of a resurging travel sector.
The company credits the sequential acceleration to continued strength in the North America, EMEA and Latin America regions, as well as to their current higher average daily rates.
ABNB’s net income for the quarter quadrupled the amount posted in the same period last year, reaching $834 million – the company’s most profitable quarterly results ever.
CEO Brian Chesky said that their new “I’m flexible” feature was well-received and extensively opted for by clients, helping raise conversion rates year-on-year by 48%. ABNB will continue to push and develop the new option moving forward.
“There’s a new paradigm in travel, and this flexibility is here to stay,” he said. “Down the road this will be a major way people are searching on Airbnb.”
The increasing demand for travel was also mirrored in Expedia Group, Inc. ( Nasdaq: EXPE )’s most recent quarterly report, which showcased similar numbers to the same pre-pandemic period in 2019.
EXPE posted $362 million in net income for Q3 2021 – inching close to 2019’s $409 million result – and multiple times more than the $221 million loss posted in the same period in 2020.
Peter Kern, EXPE CEO, commented on the results during an analyst call last week: “ We are very pleased with the quarter we had in Q3, nearly matching our adjusted net income and EBITDA from 2019. If not [the coronavirus Delta variant], this would have been our most profitable quarter ever.”
The sector’s reinvigoration is aided by a slew of partnerships and innovations brought forth by many of its vendors – with one of the sectors bringing the most impactful offerings being that of insurance technology.
InsuraGuest Technologies Inc. ( TSXV: ISGI ) (OTCQB: ISGIF) , an insurtech company quickly cementing itself in the hospitality sector is one of those vendors. Their proprietary insurtech platform delivers digital short term renters’ insurance to hotel and vacation rentals, which automatically attach to every reservation for a nightly fee. The InsuraGuest policy is the only product on the market that delivers a no-fault primary medical policy with a property rider to the reservation which protects the property from claims made by guests.
The Canadian company, with offices in the U.S., not only provides a way for hosts to safeguard their properties but is also being quick to establish alliances that allow it to expand its reach and offerings.
Most recently, ISGI closed a partnership with Tokeet – a vacation rental management software company and one of ABNB’s biggest suppliers. The partnership puts InsuraGuest policies within reach of a new 40,000 professional hosts and property management companies. Altogether, Tokeet accounted for 100 million nights stayed in 2020.
Tokeet CEO, Kwesi Steele, commented on the partnership: "Tokeet prides itself on being one of the most integrated rental management platforms on the market. We have built an ecosystem of the best partners in this industry. Therefore, we are so excited to announce our new partnership with InsuraGuest. Their supplemental insurance products, especially their primary no-fault medical coverage, will protect our hosts from claims made by their guests. Protection that could reduce their overall premiums on their current insurance policy."
ISGI’s hunt for partnerships has been wide-ranging and fruitful in Q4 2021. The company announced many other partnerships to close out the year, including SUITELIFE Underwriting Mangers , a division of the Ryan Specialty Group family.
Per the press release, the partnership gives ISGI direct access to 700+ hotel and resort customers in SUITELIFE's portfolio – roughly 100,000 rooms for a total of approximately 22 million nights stayed per year. They also closed a partnership with major property management software provider LMPM , one of the world's best in the vacation rentals market.
ISGI’s partnerships showcase the team’s optimism going into 2022 – a year in which we could see a more dramatic reinvigoration of the entire travel sector. InsuraGuest has made sure that they’re ready for what’s to come, making for safer travels and hosting for all parties.
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