Lodging booker platform Airbnb (ABNB) topped first-quarter revenue and earnings estimates, but the stock is falling on its second-quarter forecasts despite seeing experience bookings and app engagement rise year-over. What are the performance of travel companies signifying about consumers' willingness to spend for summer travel this season?

Yahoo Finance's Madison Mills details Airbnb and Hyatt Hotels' (H) latest earnings figures as potential travelers navigate inflation when booking their next vacation.

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This post was written by Luke Carberry Mogan.

Video Transcript

We've been talking about how maybe the weakness that we're seeing in the consumer when it comes to some of these consumer facing brands think you're Starbucks or McDonald's.We've been saying, Hey, that's OK because they're still spending on travel and services.If you look at the data that we're seeing from today, that story not necessarily holding here, let's take a look at Airbnb Deceleration in North American nights booked in the first quarter and the CEO saying that they are working to differentiate working to get more hosts on the platform.But that was not enough to them.This quarter, you can see their year over year nights and experiences booked up 9.5%.The street was looking for a higher number than that.That's why, even though that we're seeing that growth, it just was not enough, especially compared with previous growth cycles that we've seen from Airbnb.And then you have the stock here moving to the downside down a little over 6.5% here.Interesting to note when it comes to the stock performance that Air B and B is having their worst day since May 10th of 2023.I also to take a look at what we're seeing from high, their earnings dropping a little over 5%.That is the most intra day since February 13th.They cut their just even a guidance for the full year, and their guidance missed the average analyst estimate so that full year guidance indicated that they are not seeing the demand that they had previously.That's also interesting.Brad, you told me this that Airbnb was looking to some of the cities that don't have hotels as a potential growth area.But even the hotels starting to struggle.I don't know how successful that effort is going to be.Brad.Well, it's also the marketing efforts that all of these companies have to put forward right now, too, in order to really give the value proposition, put it front and centre in front of consumers right now who are being more decisive about where they're spending their dollars.Even this this experience economy and that's actually something that we heard from Airbnb about on the earnings call, the executives talking about marketing being one of the line items that you could potentially see some marketing compression in order to drive growth.And then additionally, we're talking about some of the other areas that are trying to accelerate the product road map.They could be bringing on more head count as well.That's some of the margin compression share prices, reacting accordingly here.But then, as you mentioned on the Hyatt side, I mean, that's remarkable for the sheer amount of consolidation that we've been kicking around here and seeing discussed within this industry to really reshape the accommodation space right now.And the inflation narrative can to be an issue.I mean for Airbnb.I know this is just according to social media, but people messaging the host separately and trying to get their rental without having to pay the Airbnb fees.So they're cutting out the middleman there.That is not going to be good for Airbnb, but it indicates that the consumer is at a point where they don't want to pay a service fee anymore.Like what is that?Yeah, user generated anecdotal data.Well, exactly.That is what that is.Thanks so much.Appreciate it.