Airbnb lifts annual revenue growth forecast on resilient global travel demand
Airbnb said it does not expect a material impact in its current quarter from the unrest in Europe or the Middle East conflict.
On November 5, Airbnb raised its full-year 2026 revenue growth forecast, anticipating "high teens" growth compared to the earlier "at least mid-teens" projection. The company's optimism stems from its belief in the resilience of global leisure travel demand, despite inflation and geopolitical uncertainty. Airbnb's shares saw a 11% increase in extended trading following the news.
The company also announced a new repurchase program of up to US$12 billion of its Class A common stock. In the third quarter, Airbnb booked 155 million nights and seats, a 16% increase. North American bookings grew by a "low double-digit" year-over-year percentage, while EMEA saw a "mid-teens" increase. Despite concerns from hotel operators like Hilton, Marriott, Expedia, and Booking Holdings about fourth-quarter forecasts due to airfare hikes and unrest in Europe and the Middle East, Airbnb's CFO Ellie Mertz stated that the unrest does not currently impact their quarter.
The company sold its intellectual property to a private AI lab for US$7.1 million in cash, aiming to build its own AI agent for trip planning and booking, set to launch in the first half of 2027. Airbnb's customer support cost per booking dropped by over 17% in the quarter, with 40% of issues resolved without human intervention, up from one-third in the second quarter.
The company reported a diluted earnings per share of US$3.16 for the quarter ended September 30, compared to US$2.21 a year ago. Analysts had projected revenue of US$4.75 billion for the quarter, but Airbnb surpassed the figure, reporting US$4.87 billion in revenue.
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