Airbnb reported a strong performance for the third quarter and projected an upbeat outlook for the rest of the year. The company expects Q4 revenue to range between USD 2.66 billion and USD 2.72 billion, exceeding the average analyst estimate of USD 2.67 billion, according to its latest shareholder letter.
Airbnb’s key metric—nights and seats booked—is projected to increase in the “mid-single-digit range” year-over-year, aligning with market expectations. The company noted that October demand remained strong despite tougher comparisons with last year. A major growth driver has been the “reserve now, pay later” feature, launched in August for U.S. rentals, which encourages travelers to book trips earlier.
In the third quarter, Airbnb’s revenue rose 8.8% to USD 4.1 billion, surpassing expectations. Adjusted EBITDA reached USD 2.1 billion, while net income stood at USD 1.37 billion, slightly below the estimated USD 1.46 billion due to ongoing investments in AI tools, international expansion, and new services.
The company said that North American travelers accounted for around 30% of total nights booked, supported by strong domestic demand and longer booking lead times. International markets also performed robustly, with first-time bookers increasing more than 20% in Japan and nearly 50% in India. Airbnb stated that overall nights booked would have grown by double digits if not for a slowdown in North America.
The “reserve now, pay later” option is expected to bring a net benefit to overall bookings, even with the risk of cancellations. Airbnb plans to expand this feature to more users globally in the coming months.
Peers such as Booking Holdings Inc. and Expedia Group Inc. also reported strong travel demand, signaling resilience across the global hospitality and travel industry.
Looking ahead, Airbnb raised its full-year adjusted earnings margin target to 35%, up from “at least 34.5%” previously. CEO Brian Chesky said the company will maintain strong margins while investing in growth initiatives, including partnerships with boutique and independent hotels in cities like Los Angeles, New York, and Madrid.
Airbnb also continues to expand its Experiences and Services category, which has attracted new users—nearly half of all experience bookings are made independently of accommodation reservations.
Chesky added that Airbnb plans to launch “at least one new business each year,” citing Airbnb Luxe and the hotel pilot as examples of future growth opportunities. “Our theory is that every incremental new business we launch will be more efficient to scale than the last,” he said.
The company’s expansion into diversified hospitality offerings and continued innovation in guest experience reinforce its long-term strategy to build a sustainable, high-margin global travel platform.
