Airbnb has quickly become one of those companies that you must sit back and truly take a close look at. The Company’s current valuation sits right around $25.5 billion; larger than Hilton, Marriott, Accor, Wyndham, and basically any other major U.S. hotel chain. And, according to industry analysts, these numbers are poised to continue growing at a steady and continuous pace.
In fact, according to information from Bank of America – Merrill Lynch, Airbnb recently encompassed roughly 5% – 7% of all lodging demand in large U.S. cities. Other data stats show that in 2015, business travel spending on Airbnb jumped 261% nationally and 249% internationally. This is at a time when many companies around the world have found themselves stagnant, with little growth, if any.
Just yesterday, Airbnb came out and announced new partnerships with American Express Global Business Travel, BDC Travel, and Carlson Wagonlit Travel. It is expected that with these new partnerships, the aforementioned companies will encourage employee and customer use, to book on the Airbnb platform. This action could potentially add hundreds of millions of dollars to the Company’s bottom line and balance sheets, in the near future.
For a company of this size, Airbnb employs only about 50,000 employees and reportedly booked roughly 80 million reservations in 2015. In addition, the new synergies brought by Airbnb’s new partnerships, are expected to provide tremendous growth to the business and corporate side of the travel market.
Airbnb has become, and continues to be, one of those young companies that comes around and displaces the entire travel market. To keep things in perspective, Airbnb is only 8 years old and has a larger market value than 97 year-old Hilton, 23 year-old Marriott and 35 year-old Wyndham.
It is companies like Airbnb and Uber which prove that young, robust start-ups, can not only thrive in this marketplace, but actually become the most dominant players.