The Airbnb phenomenon continues to take flight, and at least one investment house is singing the firm’s praises.
As noted in a research report by Cowen Group Inc., certain measurements and their growth rates give occasion for optimism. Bloomberg reported that the research firm wrote: “While we expected positive results for Airbnb, we were surprised by how well Airbnb fared in a number of key metrics that we see as bullish for the company’s long-term prospects.” The analysts noted this after having surveyed 1,400 U.S. hotel and short-term rental consumers, with an eye on Airbnb users.
Cowen said that it has estimates in place that say Airbnb bookings should grow from 79 million this year to as much as 500 million by five years out and as much as 1 billion in 2025.
Goldman Sachs said in a report that was released this year that U.S. consumers it queried stated that once they go to an Airbnb location, they do not switch back to traditional hotel stays. In fact, about 75 percent of those who used the service as long as five years ago have used it within the past year. Leisure travel is key, as is word of mouth.
Back to the Cowen survey, which found that only 10 percent of respondents have used the service, setting the stage for growth, largely through one prime mover in the form of a boost to brand awareness. The analysts wrote: “Among the 26 percent of survey respondents who knew and understood what Airbnb was, but had not yet stayed in an Airbnb, 82 percent said they would be willing to try Airbnb in the future. In fact, 66 percent of those 82 percent said they planned to try Airbnb in the next year.”