Travel Remains a Go in 2023

Key Takeaways:

• Travel demand has moderated from 1H22, but remains robust into 2023 despite slowing consumer spend amidst rising inflation and interest rates

  • Booking Holdings reported January gross bookings and room nights were up 74% and 60% YoY, respectively; per Sensor Tower data, Booking grew downloads 67% YoY in Jan’23, an acceleration from 47% in Dec’22, while MAUs rose 16% YoY

  • Airbnb’s and Expedia’s2 management teams commented about the rebound in January, which is growing at a faster pace than 4Q22; Expedia noted that it saw over 20% growth versus 2019 in lodging gross bookings in Jan’23, with Asia-Pac coming back strongly

    • Jan’23 downloads at Airbnb and Expedia grew 35% and 40% YoY, respectively, per ST estimates

• 4Q22 results were mixed with Booking and Airbnb seeing upside while Expedia struggled due to the Dec’22 winter storm, which negatively impacted other travel-related sectors, including airlines

  • Booking reported a 44% and 32% surge in 4Q22 gross bookings versus 4Q21 and 4Q19, respectively, with 45% of its room nights booked on its mobile app during the quarter and full year, a 13 pps increase from 2019; per ST estimates, Booking’s downloads and MAUs grew 34% and 7% YoY, respectively, in 4Q22

  • Expedia, with greater US and air travel exposure, struggled in 4Q22 amidst the “bomb cyclone” storm in Dec’22, with gross bookings falling 12% vs 4Q19; per ST estimates, downloads and MAUs grew 25% and 33% YoY, respectively, in 4Q22

  • Airbnb and Vrbo, two of the largest vacation home rental platforms, grew downloads 11% and 22%, respectively, in 4Q22, a deceleration from 1H22, per ST data

    • Airbnb has struggled to maintain user engagement with average session counts slowing monthly on a YoY basis since Apr’22, while Booking, Tripadvisor and Expedia have all seen a rebound in average session count in both Dec’22 and Jan’23

For more information, request the full report from reports@sensortower.com.