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The Business of Airbnb, by the Numbers

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The Business of Airbnb, by the Numbers

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The Business of Airbnb, by the Numbers

Airbnb was one of the most highly anticipated IPOs of 2020.

After a trading surge, the company’s market cap topped the $100 billion mark. Now that the dust has settled, here are some key numbers behind the company’s unique business model.

The Last 5 Years

Since 2015, Airbnb has had an epic run.

With a market cap of close to $90 billion, they are one of the largest businesses in the travel and tourism space. However, there is still plenty of room to grow: Airbnb identifies their total addressable market (TAM) to be worth $3.4 trillion.

Metric20152016201720182019
Gross Booking Value ($ Billions)$8.1B$13.9B$21.0B$29.4B$38.0B
Annual Nights & Experiences Booked (In Millions)72.4M125.7M185.8M250.3M326.9M
Revenues ($ Billions)$919M$1.6B$2.5B$3.6B$4.8B

Nights and experiences booked by customers have shot up 4.5x, from 72 million in 2015 to 326 million in 2019. At the same time, the gross dollar value of these bookings has surged from $8.1 billion to $38 billion.

No Shortage Of Space

Airbnb’s ability to scale its services is reflected by its room count, which is unmatched when compared to the hotel industry.

In 2019, Airbnb had nearly 5 million rooms available, a mammoth of a figure considering the next largest was Marriott at 1.3 million. The company is a giant thorn in the hotel industry’s side, and their room count is approximately the size of the five largest hotel chains combined.

A Shortage Of Profits

Despite a global presence and attractive numbers, the business of Airbnb is yet to be profitable.

Airbnb has lost money every year—and the company’s cumulative losses total $2.8 billion since 2008. Not surprisingly, those losses have been exacerbated during the pandemic, a common theme for all travel and tourism stocks. Airbnb had -4 million bookings in March, and these negative bookings helped lead to a -32% decline on their top line compared to 2019.

Metric201520162017201820192020 (Q1'-Q3')
Revenue$919M$1.6B$2.5B$3.6B$4.8B$2.5B
Net Income-$135M-$136M-$70M$-17M-$674M-$696M

Airbnb’s net income losses so far in fiscal 2020 (Q1-Q3) are -$696 million, the largest of any year.

Silver Linings

Airbnb has demonstrated an ability to adapt during this time of uncertainty through the introduction of digital experiences. They also made the tough decision to cut 25% of their staff this year.

Monthly bookings and experiences have shown signs of recovery. Since the negative bookings earlier in March, figures have crept back up to the 20 million range, near pre-pandemic levels.

A resilient segment for the business of Airbnb is short-distance travel within 50 miles of guest origin. As the pandemic expanded, people are taking vacations from their abodes by visiting less densely populated neighboring communities.

Another Hot IPO

The Airbnb IPO was one of many headline makers of 2020. When it comes to initial public offerings, markets as of late have shown no shortage of exuberance. Company shares have had the tendency to surge once hitting the secondary market, reflecting investor appetite. The Airbnb IPO experienced just this: initially intending to be priced at $56-$60 a share, in just a few weeks they traded as high as $160 per share.

The Renaissance IPO Index, a returns tracker for U.S. public offerings, reports that IPOs are up roughly 108% in the last calendar year, experiencing one of the best years on record.

But the aftermath of an IPO can just as likely go sour. Public companies are subject to more strenuous regulation relative to the private markets. And with a near $90 billion valuation, future expectations are high for Airbnb. The company will have to woo shareholders in the coming quarters to keep momentum, which likely means showing strides in an uncertain travel and tourism landscape.

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Healthcare

Charted: Average Years Left to Live by Age

Visualizing the number of years left to live for Americans at every age, reveals the broader trends in American life expectancy.

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Chart showing the average years left to live at every age for men and women.

How Many Years Do You Have Left to Live?

At the start of the 19th century, when there fewer than 1 billion humans on the earth, global life expectancy at birth stood at roughly 29 years.

This is a startlingly low figure—because life expectancy is a statistical projection of how many more years a person can expect to live, based on the mortality rates at the time. And since the infant mortality rate in particular was so high, life expectancies accurately summarized the low likelihood of many babies living to adulthood.

However, since the 1920s, life expectancy across all ages has improved leaps and bounds, thanks to rapid advancements in nutrition, healthcare, and sanitation.

We visualized the current American life expectancy by age and gender, using data from the Office of Social Security, which bases their current projections on 2020 mortality rates.

American Life Expectancy at Every Age

A key takeaway with life expectancy is that it increases as one gets older. This is easily seen in the table below, which lists the remaining years left to live at a given age for an American male and the projected life expectancy.

AgeYears Remaining (Men)Life Expectancy (Men)
074.1274.12
173.5574.55
272.5874.58
371.6074.60
470.6274.62
569.6374.63
668.6474.64
767.6574.65
866.6574.65
965.6674.66
1064.6774.67
1163.6874.68
1262.6974.69
1361.7074.70
1460.7174.71
1559.7374.73
1658.7674.76
1757.7974.79
1856.8474.84
1955.9074.90
2054.9774.97
2154.0475.04
2253.1275.12
2352.2175.21
2451.3075.30
2550.3975.39
2649.4875.48
2748.5775.57
2847.6675.66
2946.7675.76
3045.8675.86
3144.9775.97
3244.0776.07
3343.1876.18
3442.2976.29
3541.3976.39
3640.5076.50
3739.6276.62
3838.7376.73
3937.8576.85
4036.9776.97
4136.0977.09
4235.2177.21
4334.3477.34
4433.4677.46
4532.5977.59
4631.7377.73
4730.8777.87
4830.0178.01
4929.1778.17
5028.3378.33
5127.5078.50
5226.6778.67
5325.8678.86
5425.0679.06
5524.2779.27
5623.4879.48
5722.7179.71
5821.9579.95
5921.2180.21
6020.4780.47
6119.7480.74
6219.0381.03
6318.3281.32
6417.6381.63
6516.9481.94
6616.2682.26
6715.5882.58
6814.9182.91
6914.2483.24
7013.5983.59
7112.9483.94
7212.3084.30
7311.6784.67
7411.0585.05
7510.4685.46
769.8885.88
779.3286.32
788.7786.77
798.2587.25
807.7487.74
817.2588.25
826.7788.77
836.3189.31
845.8889.88
855.4790.47
865.0791.07
874.7091.70
884.3592.35
894.0293.02
903.7293.72
913.4494.44
923.1895.18
932.9695.96
942.7596.75
952.5797.57
962.4298.42
972.2899.28
982.15100.15
992.04101.04
1001.93101.93
1011.83102.83
1021.73103.73
1031.63104.63
1041.54105.54
1051.45106.45
1061.36107.36
1071.27108.27
1081.18109.18
1091.10110.10
1101.02111.02
1110.95111.95
1120.88112.88
1130.82113.82
1140.76114.76
1150.70115.70
1160.65116.65
1170.60117.60
1180.56118.56
1190.52119.52
1200.48120.48

At birth, an average American baby boy can expect to live till just past 74. But if the boy reaches adulthood, then at 21 he might live to a full year more, past 75. This trend persists even towards the end of life when the years we have left drop rapidly, influenced by the higher likelihood of death.

American women, on the other hand, have a higher life expectancy than men. At birth the gap is close to six years, narrowing steadily to around one year by 85.

AgeYears Remaining
(Women)
Life Expectancy
(Women)
079.7879.78
179.1780.17
278.1980.19
377.2180.21
476.2280.22
575.2380.23
674.2480.24
773.2580.25
872.2580.25
971.2680.26
1070.2780.27
1169.2780.27
1268.2880.28
1367.2980.29
1466.3080.30
1565.3180.31
1664.3280.32
1763.3480.34
1862.3680.36
1961.3880.38
2060.4180.41
2159.4480.44
2258.4780.47
2357.5080.50
2456.5480.54
2555.5880.58
2654.6180.61
2753.6680.66
2852.7080.70
2951.7480.74
3050.7980.79
3149.8480.84
3248.8980.89
3347.9480.94
3447.0081.00
3546.0681.06
3645.1281.12
3744.1881.18
3843.2481.24
3942.3181.31
4041.3881.38
4140.4581.45
4239.5281.52
4338.6081.60
4437.6881.68
4536.7681.76
4635.8581.85
4734.9481.94
4834.0482.04
4933.1482.14
5032.2482.24
5131.3582.35
5230.4782.47
5329.5982.59
5428.7282.72
5527.8682.86
5627.0183.01
5726.1683.16
5825.3283.32
5924.4983.49
6023.6783.67
6122.8583.85
6222.0484.04
6321.2484.24
6420.4584.45
6519.6684.66
6618.8884.88
6718.1085.10
6817.3485.34
6916.5885.58
7015.8285.82
7115.0886.08
7214.3686.36
7313.6486.64
7412.9486.94
7512.2687.26
7611.6087.60
7710.9587.95
7810.3188.31
799.7088.70
809.1089.10
818.5389.53
827.9889.98
837.4490.44
846.9390.93
856.4491.44
865.9991.99
875.5592.55
885.1593.15
894.7693.76
904.4194.41
914.0895.08
923.7895.78
933.5196.51
943.2797.27
953.0598.05
962.8598.85
972.6899.68
982.52100.52
992.37101.37
1002.23102.23
1012.09103.09
1021.96103.96
1031.84104.84
1041.72105.72
1051.61106.61
1061.51107.51
1071.41108.41
1081.32109.32
1091.24110.24
1101.16111.16
1111.09112.09
1121.02113.02
1130.96113.96
1140.90114.90
1150.85115.85
1160.80116.80
1170.75117.75
1180.70118.70
1190.66119.66
1200.62120.62

Interestingly, women outlive men in nearly every country in the world, due to a mix of sociological, behavioral, and biological reasons.

COVID-19: Reversing A Decade of Increasing American Life Expectancy

While the current American life expectancy at birth seems reasonably high, it is nearly two years lower than the 2022 figure which used the 2019 mortality rate. It is also lower than the life expectancy at birth in 2009, which used 2005 mortality rate.

YearLife Expectancy
at Birth (Men)
Life Expectancy
at Birth (Women)
200974.1279.95
201476.1080.94
201976.0480.99
202374.1279.78

American mortality rates went up 17% between 2019–2020, in part because of COVID-19, in turn affecting life expectancy. The U.S. also had a higher COVID-19 mortality rate compared to its peers two years after the pandemic first struck.

Thus, American life expectancy may not improve immediately to 2019 levels, which can affect insurance premiums, pension benefits, and plans.

Where Does This Data Come From?

Source: Office of Social Security, U.S. Government.

Note: The life expectancy at a given age is the average remaining number of years expected prior to death for a person at that exact age, born on January 1, using the mortality rates for 2020 over the course of their remaining life.

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