The Covid-19 pandemic has hit the travel industry hard, including online travel agencies, whose revenues and reservations dipped to the lowest point in years amid the lockdown. However, as the entire market started its long and challenging way to recovery, the stock price of the leading online travel companies increased over the last few months.
According to data presented by TradingPlatforms.com, the combined market capitalization of Booking.com, Airbnb, Expedia, Trip.com, and MakeMyTrip, as the world's largest online travel companies, jumped by $54bn since the beginning of the year and hit $306.3bn last week.
Airbnb's Market Cap Jumped by 20%, Booking.com Up by $16.4B
The worst year in tourism history ended with the most anticipated US IPO in 2020. Shares of the world's leading online company, Airbnb, more than doubled in their stock market debut on Nasdaq in December, valuing the home rental firm at $144.7 billion, far above the market cap of Booking.com and Expedia as the largest competitors.
As lockdowns eased, more travelers opted to book homes instead of hotels, especially away from major cities, helping Airbnb alleviate the financial losses caused by travel restrictions. Despite that, the San-Francisco-based company ended 2020 with $3.4bn in revenue, 30% less than before the pandemic struck.
Nevertheless, the YCharts data revealed Airbnb`s market cap jumped by $28.9bn since the beginning of the year. After reaching close to $210bn in March, the combined value of the company's stocks dropped to $173.6bn last week, 20% more than in December.
As the second-largest online travel company globally, Booking Holdings also suffered substantial losses amid the pandemic. The company's financial results revealed annual revenues plunged by 55% YoY to $6.8bn last year. Nevertheless, its market cap jumped by 19% since the beginning of 2021. In December 2020, the combined value of shares of a Dutch online travel agency stood at $84.7bn. Over the last four months, this figure jumped by $16.4bn and hit $101.1bn last week.
Expedia Group's Market Cap Surged by 48%, the Biggest Increase Among the Top Five Companies
Although far behind Airbnb and Booking.com as the two leading players in the online travel industry, Expedia group witnessed the most significant market cap increase this year. In December, the market capitalization of the US online travel company for consumer and small business travel stood at $17.5bn. After reaching an all-time high of $26bn in March, Expedia's market cap slipped to $25.9bn last week, a 48% increase in four months.
Trip.com, as the fifth-largest online travel company, hit $2.9bn in market cap in the last week of April, 16% more than in December. MakeMyTrip follows with a 7% increase in this period and $2.8bn in market cap as of the last week.