(Reuters) -Airbnb Inc said on Tuesday it expects bookings growth and average daily rates to decline in the current quarter, signaling a reverse in demand trends and sending the vacation rental firm's shares down 9%.
The travel industry, which saw a big recovery in the last few quarters, faces risks from high inflation as fewer people book long-term rental stays away from cities, with employers also urging workers to return to offices.
"We anticipate a slightly lower ADR in Q2 (versus last year) driven by mix shifts and the introduction of new Host pricing tools as part of our 2023 Summer Release," Airbnb said.
The company said gross bookings would slow in the second quarter after it recorded high growth rate last year due to pent-up travel demand.
The San Francisco-based company, which generates half its revenue from listings outside the United States, in the last few quarters had benefited from flexible work arrangements and household savings that boosted its margins.
But as economic outlook worsens, it expects to keep a tight lid on costs to ensure its full-year core margins remain stable even as demand for travel remains resilient.
Revenue rose about 20% to $1.82 billion from a year earlier, compared with the average analyst estimate of $1.8 billion.
"We were particularly encouraged by the continued recovery of Asia Pacific as nights booked in Q1 2023 increased over 40% year-over-year," Airbnb said in a statement.
The company said earlier this year that average daily rates (ADRs) will remain pressured as vacationers return to lower-cost urban rentals. Its first-quarter average daily rates (ADRs) remained flat at $168 compared with a year earlier.
It forecast second-quarter revenue between $2.35 billion and $2.45 billion, largely in line with analysts' expectations.
(Reporting by Priyamvada C in Bengaluru; Editing by Shinjini Ganguli)
