Airbnb Remains Bullish on 'Reserve Now, Pay Later' as Adoption Builds, RBC Says

MT Newswires Live03-14 00:02

Airbnb (ABNB) remains bullish on its "Reserve Now, Pay Later" feature, with early performance running ahead of expectations and helping extend booking lead times, lift average daily rates, and prompt guests to secure stays earlier in their planning cycle, RBC Capital Markets said Friday in a report.

Airbnb's move to a single host fee is gaining traction, with Q4 results showing most hosts keep prices unchanged, lowering total costs for guests and helping accelerate nights booked and gross bookings value, the report said.

As the broader rollout progresses, Airbnb plans to eliminate the 12% surcharge that previously made comparable listings appear more expensive than competitors at checkout, RBC said after hosting an investor meeting with the company's investor-relations team.

Airbnb remains mid-deployment on hotel integrations, focusing on getting user experience and merchandising right before expanding, RBC said. Feedback from hotels suggested they welcome an additional distribution partner, and pricing was viewed as competitive, the report said.

RBC maintained its outperform rating on Airbnb company with a $170 price target

Price: 126.30, Change: -1.40, Percent Change: -1.10

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