Director of Tourism, Jamaica Tourist Board, Donovan White, says Jamaica is experiencing a surge in business travel, which is on its way back to pre-COVID levels.

He informed that the country’s meetings, incentives, conferences, and exhibitions (MICE) sector is on the rise.

MICE tourism refers to business-related events that are planned, and professionals from the related sector are brought together in a hospitality setting.

Speaking at the Caribbean Meeting and Incentive Travel Exchange (CMITE) Breakfast held at the Secrets Wild Orchid Resort in Montego Bay, St. James, on Tuesday (August 22), Mr. White noted that “business is back, and in-person events are once again being well attended”.

“We here in Jamaica could not be more pleased, as group business has long been a key component of our strategy for the development and growth of the island’s tourism product,” he stated.

The Director of Tourism pointed out that while MICE travel is not measured by percentages due to the varied sizes of the groups and the dynamic nature of meetings, tourism stakeholders have been reporting bookings for large groups, several months ahead of time.

“All our partners are beginning to report that they are [seeing] in their reservations, six months, 12 months, and 18 months ahead for large groups coming back to Jamaica, and that is an extremely good sign for our forecasting ability of arrivals to the destination,” he stated.

The CMITE meetings, which were hosted by wellness brand Questex on the island, connects North American meeting planners and incentive buyers with leading Caribbean and Mexico-based suppliers to foster meaningful industry relationships.

While noting that the island is pleased to have been chosen to host CMITE for the third time, Mr. White outlined that Jamaica has put in the work to ensure that it could once again host meetings of this nature.

“It’s the kind of market that’s built on a lot of sensitivity, so we’ve worked very hard over the last two and a half to three years since COVID, to rebuild Jamaica’s appetite for business travel, meetings, and conventions,” he pointed out.

“Our hotels have adequate meeting spaces, and our partners who are interested in this segment of the market have ensured that their hotels have the necessary facilities to accommodate small, medium, and even 600-person groups,” he added.

The objective of the CMITE series of meetings is to promote Jamaica as a warm-weather destination of choice with the personnel, infrastructure, and strong cultural appeal that will result in reservations for meeting and incentive groups.

More than 40 buyers and planners are participating in the meetings, which are being held from August 21 to 24.

By: SERENA GRANT JIS

Adoption of the Blue Ocean Strategy has the potential to revolutionise Jamaica’s tourism industry in ways that will differentiate the island from its regional competitors, says Minister of Tourism, Hon. Edmund Bartlett.

He said that implementation of the strategy will not only stimulate economic growth by attracting new investments and increasing visitor spending but will, in turn, create employment opportunities across various sectors.

The Minister was speaking at the graduation ceremony for the Central Jamaica Social Development Initiative (CJSDI) North West Manchester Youth Entrepreneurship Training, at the Tropics View Hotel, Hatfield, Manchester, on August 17.

The Blue Ocean Strategy, developed by Professors W. Chan Kim and Renée Mauborgne, suggests that businesses can achieve remarkable success by identifying and capturing untapped market spaces, termed ‘blue oceans’.

“By creating unique and differentiated offerings, Jamaica can stand out in a crowded global market. This will attract travellers seeking novel experiences and position the country as a premier destination for sustainable tourism,”

These blue oceans represent areas where competition is low or nonexistent, allowing businesses to create and capture new demand by focusing on differentiation and innovation rather than competing in overcrowded market spaces.

These organisations can secure long-term growth and profitability.

“By creating unique and differentiated offerings, Jamaica can stand out in a crowded global market. This will attract travellers seeking novel experiences and position the country as a premier destination for sustainable tourism,” the Minister told graduates, parents and other stakeholders.

“By emphasising Jamaica’s cultural heritage and promoting community involvement, the strategy will help preserve and celebrate the island’s rich traditions while providing authentic experiences for visitors,” he added.

Mr. Bartlett said that by targeting new customer segments, the Ministry aims to identify untapped markets, such as adventure tourism, wellness tourism, and eco-tourism, to attract a diverse range of travellers with varied interests, noting that by catering to niche segments and developing tailored experiences, Jamaica can meet the evolving demands of modern travellers.

He said that by pursuing strategic partnerships, the Tourism Ministry also plans to foster collaborations between the public and private sectors, local communities and international stakeholders.

These partnerships, he said, will enable Jamaica to leverage expertise, resources, and investments to drive innovation and support sustainable development initiatives.

Mr. Bartlett added that future trajectory would support the Government’s aim to break away from traditional tourism approaches and create untapped market spaces, allowing the country to thrive in an era of increased global competition.

“This bold move will generate significant excitement and anticipation within the industry, as experts recognise the potential for Jamaica to become a global leader in sustainable tourism,” he said.

“By implementing eco-friendly practices, protecting natural resources, and supporting local communities, the country can differentiate itself and attract conscious travellers seeking responsible and ethical experiences,” the Minister added.

Forty youth entrepreneurs from across Manchester who have been trained in the principles of effective business operation since April 2023 graduated from the CJSDI Entrepreneurship Training Programme.

The programme’s main aim is to provide the graduates with the skills to transform fledgling businesses into successful entities that meet global standards and give graduates small grant funding to support their entrepreneurial goals.

The training was conducted in partnership with other public agencies, such as the HEART/NSTA Trust, Rural Agricultural Development Authority (RADA), Jamaica Business Development Corporation (JBDC) and the Companies Office of Jamaica (COJ).

By: GARWIN DAVIS, JIS

A Tourism Economic Impact Study is to be conducted to identify the economic, fiscal, social and environmental impact of the development of an additional 15,000 to 20,000 hotel rooms to augment Jamaica’s existing stock.

This exercise will be spearheaded by the Ministry of Tourism, Portfolio Minister, Hon. Edmund Bartlett, announced as he closed the 2023/24 Sectoral Debate in the House of Representatives on Tuesday (June 20).

He said the study’s objectives are to identify and evaluate the potential impact of the proposed developments on gross domestic product (GDP); foreign exchange earnings; investment; government revenue and expenditure; income and employment (direct and indirect); and key related sectors such as agriculture, construction, manufacturing and entertainment.

The study is also intended to identify and evaluate the potential impact of the proposed developments on infrastructure needs; the environment; and individuals (particularly in relation to housing, transport, and recreation); and provide recommendations to mitigate potential negative impacts while capitalising on positive effects, as well as a credible, rigorous evidence base to inform public awareness of the value of the tourism industry to Jamaica.

“This is the most substantial increase in room stock over the shortest period of time in Jamaica’s history. It represents a uniquely transformative moment. We must seize the moment to obtain the maximum social and economic benefit,” Mr. Bartlett said.

Airbnb, Inc. (NASDAQ: ABNB) Chief Executive Officer, Brian Chesky, has released the following Q1 2023 Shareholder Letter (edited)

Revenue of $1.8 billion grew 20% year-over-year (24% ex-FX). Net income was $117 million—our first profitable Q1 on a GAAP basis. Adjusted EBITDA was $262 million while Free Cash Flow was $1.6 billion, growing 32% year-over-year. We are now twice the size as we were before the pandemic on both a GBV and revenue basis—and with considerably higher profitability and cash flow.

Looking ahead, we remain focused on our three strategic priorities:

• Make hosting mainstream. Traveling on Airbnb is mainstream. We want hosting to be just as popular. To achieve this, we are raising awareness around hosting, making it easier to get started, and providing even better tools for Hosts. We have seen great results from our efforts. In every quarter over the last two years since we went public, we’ve seen acceleration in the year-over-year growth of our total active listings (excluding China). In Q1, total active listings grew 18% compared to the same prior year period, up from 16% in Q4 2022.

• Perfect the core service. We want people to love our service, and that means obsessing over every detail. Millions of people have given us feedback on how to improve Airbnb. Recently, we’ve received a lot of input about rising prices. In today’s economic environment, it’s more important than ever to provide affordable stays for guests. We’ve listened. Last week, we introduced over 50 new features and upgrades as part of our 2023 Summer Release—including Airbnb Rooms, an all-new take on the original Airbnb, improved pricing tools, transparent checkout instructions, and more.

• Expand beyond the core. We have some big ideas for where to take Airbnb next. This year, we’re building the foundation for new products and services that we plan to launch in 2024 and beyond. At the same time, while Airbnb is in over 220 countries and regions, we’re still under-penetrated in many markets. As a result, we’ve increased our focus and investments in less mature international markets and are seeing great results. Due to these efforts, Brazil and Germany have become two of our fastest growing markets and we’re excited to expand the playbook around the world.

Q1 2023 Financial Results
Here is a snapshot of our Q1 2023 results:

• Q1 revenue of $1.8 billion was our highest first quarter ever. Revenue grew 20% year-overyear (24% ex-FX) driven by solid growth in Nights and Experiences Booked and stable Average Daily Rates (“ADR”).

• Q1 net income of $117 million was our first profitable Q1. Net income was $117 million in Q1 2023 compared to a net loss of $19 million in Q1 2022. This increase was primarily due to our revenue growth, expense discipline and interest income. In Q1 2023, we delivered a net income margin of positive 6%, up from negative 1% in Q1 2022.

• Q1 Adjusted EBITDA of $262 million was a record first quarter. Adjusted EBITDA in Q1 2023 increased 14% compared to $229 million in Q1 2022. This improvement in Adjusted EBITDA demonstrates the continued strength of our business and discipline in managing our cost structure. Adjusted EBITDA margin was 14% for Q1 2023, relatively stable from 15% in Q1 2022.

• Q1 Free Cash Flow of $1.6 billion was our highest ever. Q1 2023 net cash provided by operating activities was $1.6 billion, up from $1.2 billion in Q1 2022. The increase in cash flow was driven by revenue and bookings growth as well as net margin expansion. Our TTM FCF was $3.8 billion, representing a FCF margin of 44%.2

Our TTM Free Cash Flow generation enabled us to repurchase $2 billion of our common stock over the same time period. In total, our share repurchases since the start of our buyback program in August 2022 have helped to reduce our fully diluted share count from 706 million in Q1 2022 to 697 million at the end of Q1 2023. We’re announcing today that our Board of Directors approved a new share repurchase authorization of up to $2.5 billion of our Class A common stock.

Business Highlights
Our strong quarter was driven by a number of positive business trends:

• More guests are traveling on Airbnb than ever before. Nights and Experiences Booked grew 19% in Q1 2023 compared to a year ago. Even with continued macroeconomic uncertainties, we have seen our highest number of active bookers, demonstrating both loyalty from our returning guests and a growing base of first-time bookers. Our current backlog of nights is approximately 25% stronger than a year ago.

• Guests are traveling overseas and returning to cities. Cross-border nights booked grew by 36% in Q1 2023 compared to a year ago. We were particularly encouraged by the continued recovery of Asia Pacific as nights booked in Q1 2023 increased over 40% year-over-year. We saw international travel from other regions to Asia Pacific increase 160% during the quarter compared to Q1 2022. In addition, cross-border nights booked to North America increased on a sequential basis, with 34% year-over-year growth in Q1 2023 relative to 31% a quarter ago. Cross-border nights booked to North America also increased on a sequential basis, with 34% year-over-year growth in Q1 2023 relative to 31% a quarter ago.

In addition to the strong cross-border growth, we saw more guests return to cities. High-density urban nights booked increased by 20% in Q1 2023 compared to the same prior year period.

• Guests are continuing to use Airbnb for longer stays. Nights from long-term stays (28 nights or longer) were 18% of total gross nights booked in Q1 2023. Over the past three years, we’ve seen new use cases emerge as guests across all regions and age groups use Airbnb for long-term stays.

• Supply growth continued to accelerate. We grew supply 18% compared to Q1 2022.3 We observed double-digit supply growth across all regions and market types, with the fastest growth in North America and Latin America. Urban and non-urban supply also grew 18% year-over-year.

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Airbnb CEO and co-founder Brian Chesky has released the following (edited) Q4 2022 Shareholder Letter

2022 was another record year for Airbnb. Revenue of $8.4 billion grew 40% year over year (46% ex-FX). Net income was $1.9 billion—making 2022 our first profitable full year on a GAAP basis. Adjusted EBITDA was $2.9 billion while Free Cash Flow was $3.4 billion, growing 49% year over year.

Guest demand remained strong throughout 2022. All regions saw significant growth in 2022 as guests increasingly crossed borders and returned to cities on Airbnb.

Supply growth was also strong in 2022. We ended the year with 6.6 million global active listings, which is over 900,000 more listings than we had in the beginning of the year, excluding China. This growth was driven by our global network, where demand drives supply, as well as product innovations that continue to attract new Hosts.

Looking forward to 2023, we’re seeing strong demand in Q1, indicating that consumer confidence to travel remains high. This year, we’re focusing on three strategic priorities:
• Make hosting mainstream. If you’re reading this letter, you have likely traveled on Airbnb or know someone who has. We want hosting on Airbnb to be just as popular. To achieve this, we will continue to raise awareness around hosting, make it easier to get started, and provide even better tools for Hosts.

• Perfect the core service. We want people to love our service, and that means obsessing over every detail. Based on feedback from our guests and Hosts, we’re making a large number of upgrades to our service this year—improving community support, making it easier to find the right home for you, delivering greater value, and much more.

• Expand beyond the core. We have some big ideas for where to take Airbnb next, and this year we will build the foundation for future products and services that will provide incremental growth for years to come.

As we continue to innovate and grow, we’re excited to share this journey with you.

Q4 and Full-Year 2022 Financial Results
Here is a snapshot of our Q4 and full-year 2022 results:
• Q4 revenue of $1.9 billion was our highest fourth quarter ever. Revenue grew 24% year-over-year (31% ex-FX) driven by solid growth in Nights and Experiences Booked. For the full year 2022, revenue increased 40% year-over-year (46% ex-FX) to $8.4 billion driven by the increase in demand and Average Daily Rates (“ADR”).
• Q4 net income of $319 million was our most profitable fourth quarter ever. Net income improved by $264 million compared to Q4 2021 primarily due to our revenue growth and expense discipline.

In Q4 2022, we delivered a net income margin of 17%, up from 4% in Q4 2021. For the full year 2022, we generated $1.9 billion of net income—our first profitable full year. This compared to a net loss of $352 million for the full year 2021.

• Q4 Adjusted EBITDA of $506 million was a record fourth quarter. Adjusted EBITDA in Q4 2022 increased 52% compared to $333 million in Q4 2021. Adjusted EBITDA margin was 27% for Q4 2022, up from 22% in Q4 2021. For the full year 2022, Adjusted EBITDA margin was 35%, compared with 27% for full year 2021. This improvement in Adjusted EBITDA demonstrates the continued strength of our business and discipline in managing our cost structure.

• Q4 Free Cash Flow of $455 million was our highest Q4 ever. Q4 2022 net cash provided by operating activities was $463 million, up from $382 million in Q4 2021. The increase in cash flow was driven by revenue growth and net margin expansion. Our FCF for full year 2022 was $3.4 billion, representing a FCF margin of 41%, and year-over-year growth of 49%.2 With our Free Cash Flow, we repurchased $1.5 billion of our stock and reduced our fully diluted share count from 703 million at the end of 2021 to 694 million at the end of 2022.

Business Highlights
Our strong quarter was driven by the continuation of a number of positive business trends:

• Guest demand on Airbnb remained strong. Nights and Experiences Booked increased 20% in Q4 2022 compared to a year ago. In Q4 2022, we had our highest number of active bookers yet, demonstrating guests’ excitement to travel on Airbnb despite evolving macroeconomic uncertainties. Globally, we’ve now had 1.4 billion cumulative guest arrivals. And heading into 2023, we see a strong backlog for Q1 with longer lead times for bookings in Q4 2022 compared to a year ago.

• Guests increasingly returned to cities and crossed borders. Cross-border gross nights booked increased 49%, while high-density urban nights booked grew 22% compared to Q4 2021. While the business mix remains different from pre-pandemic levels, we’ve seen consistent growth in both areas. In Q4 2022, high-density urban nights booked was 51% of total gross nights booked (versus 59% in Q4 2019) and cross-border was 44% (versus 47% in Q4 2019). Globally, we saw cross-border travel to all regions increase in Q4 2022 from last year despite continued foreign currency volatility.

While Asia Pacific, which has historically been reliant on cross-border travel, has yet to return to 2019 levels, we see China’s recent removal of travel restrictions as an encouraging sign of continued recovery for the region.

• Guests continued to stay longer on Airbnb. Gross nights booked in Q4 2022 for more than a week are 40% higher than Q4 2019. Nights from long-term stays (28 nights or longer) remained stable from a year ago at 21% of total gross nights booked. We’ve seen guests across all regions and age groups use Airbnb for long-term stays.

• Supply on Airbnb grew by over 900,000 active listings. We ended 2022 with 6.6 million active listings—our highest yet. This was an increase of over 900,000 active listings, or 16% compared to 2021, excluding the removal of all mainland China listings in July 2022 based on our decision to close the domestic business in China.

Two factors drove this increase in supply. First, demand drives supply. Hosts are attracted to the supplemental income they can earn on Airbnb, which is often critical during times of inflation and recessionary concerns. Second, our product innovation is having an impact. Over the past two years, we’ve made it more attractive and easier to Host—including our most recent introduction of Airbnb Setup. And we’re not stopping there. We will continuously invest in growing our Host community and helping them succeed.

Balance Sheet and Cash Flows
For the three months ended December 31, 2022, we reported $463 million of net cash provided by operating activities and $455 million of FCF, compared to $382 million and $378 million, respectively, for the three months ended December 31, 2021.

The year-over-year increase in FCF was driven by revenue growth and margin expansion. For the full year ended December 31, 2022, we generated $3.4
billion of net cash provided by operating activities and $3.4 billion of FCF.

Unearned fees totaled $1.2 billion at the end of Q4 2022, compared to $1.2 billion at the end of Q3 2022 and $904 million at the end of Q4 2021.

As of December 31, 2022, we had $9.6 billion of cash, cash equivalents, marketable securities, and restricted cash. We also had $4.8 billion of funds held on behalf of guests as of December 31, 2022.

In August 2022, we announced that our Board of Directors approved a share repurchase program with authorization to purchase up to $2 billion of our Class A common stock at management’s discretion.

In 2022, we repurchased $1.5 billion of our Class A common stock. The share repurchase program will enable us to offset dilution from our employee stock programs.

Outlook
We are excited to see the continued strong demand in Q1 2023. We’re particularly encouraged by European guests booking their summer travel earlier this year, the market share gains we are seeing in Latin America, as well as the continued recovery within Asia Pacific.

We expect revenue of $1.75 billion to $1.82 billion in Q1 2023. This represents year-over-year growth of between 16% and 21% and on an ex-FX basis between 18% and 23%. We expect our implied take rate (defined as revenue divided by GBV) in Q1 2023 to be similar to Q1 2022. We anticipate that the implied take rate seasonality in 2023 will be similar to 2022.

In Q1 2022, travel was significantly impacted by the Omicron strain of COVID-19 in January and to a lesser extent the war in Ukraine during February, making the earlier part of the quarter an easier year-over-year comparison than the end. In Q1 2023, we expect Nights and Experiences Booked year-over-year growth to be nearly as strong as Q4 2022.

In Q1 2023, we anticipate slightly lower ADR than we had in Q1 2022. For the remainder of the year, we expect ADR will face increasing downward pressure from mix shift, as well as new and improved pricing and discounting tools. We will be introducing these tools this year and expect these changes to drive greater affordability and value for guests, support bookings growth, and therefore also help Hosts be more successful.

For the full year 2023, we expect to maintain the strong Adjusted EBITDA margin we delivered in 2022, as we offset the headwinds from lower ADR with incremental variable cost efficiencies and fixed cost discipline. In Q1 2023, we expect Adjusted EBITDA margin to be slightly down on a year-over-year basis due to changes in the timing of our brand marketing spend. Compared to Q1 2022, we expect sales and marketing in Q1 2023 will be approximately 150 basis points higher as a percent of revenue, but flat as a percent of revenue for the full year.

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