Airbnb and Expedia Turn Customer Cash Into Profit, Aided by Rising Interest Rates

Short-term rental companies like Airbnb, Expedia Group, and Booking Holdings invest billions of dollars of their customers' money for their own profits, and thanks to rising interest rates, returns on these investments are at record levels. The companies typically collect money from guests the moment they book but only pass it on to hosts or hotels after the guest stay starts, which can be several months later. Meanwhile, the money is under their control and can be invested in typically low-risk products like money market funds.

Wall Street Journal (02/01/23) Konrad Putzier

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