Abhijith Ganapavaram & Kannaki deka

(Reuters] -Airbnb Inc predicted Tuesday a stronger-than-expected quarter of revenue following strong quarterly results from the short-term rent company. These include increased domestic travel and extended stays for guests who pay higher prices.

The pandemic struck initially in San Francisco, but the company’s business recovered. People started to travel closer to home to be able to take longer trips and to do remote work. Since then, the trend continues. “Non-urban gross night” bookings increased by 45% in quarter four compared with 2019.

“There has been an entire acceleration in this category of travel. It is that people feel less tied to their office so they can now reside anywhere,” Brian Chesky, chief executive officer, said on a conference call.

Hosts have been able to charge higher prices due to strong demand. The average daily rate for the fourth quarter was $154, up 20% from last year. Company expects that the increased rates will boost first quarter results.

Colin Sebastian from Baird Equity Research said, “Positive ADR Trends into Early 2022 should ease fears of a greater rapid normalization pricing.”

According to Refinitiv International Business Economics, Airbnb expects its current quarter revenue to be between $1.41 billion – $1.48 billion. This is higher than the estimates by analysts of $1.24 trillion.

Pre-pandemic bookings will be substantially higher, with a record gross book value.

Airbnb earned a profit per share of 8c and had a revenue total of $1.53 billion. Analysts predicted that the company would earn $3 per share, and generate $1.46billion in revenue.

Although the company isn’t heavily dependent on large cities for revenue generation, it got an increase from tourism demand. The Omicron-related impact was only temporary.

Marriott International (NASDAQ – Inc) reported Tuesday’s results, beating estimates. The hotel chain also stated that travel recovery is still intact.

Airbnb’s stock rose 3.7% to $186.73 after-market trade.