Airbnb's International and Noncore Business Expansion Plans Support Its Network Advantage

We think that Airbnb's global online travel agency, or OTA, position will strengthen over the next decade, driven by a leading alternative accommodation network (source of its narrow moat) of over 5 million hosts and cumulative 1.5 billion guest arrivals since its start in 2008 through 2023. We think this network advantage will be supported by generative artificial intelligence investment and expansion into the experiences vertical and international markets over the next several years. Also, Airbnb is positioned to benefit from the ongoing shift to mobile bookings, witnessed by Airbnb being a top-10 iPhone travel app in 104 markets versus 28 for Expedia and 149 for Booking Holdings, according to App Annie on Feb. 17, 2024. Further, we expect some durability in remote working to enhance long-term travel demand.