Airbnb reported that its revenue grew 19% in the third quarter to $4.9 billion, marking the company’s fastest expansion in three years. The results significantly outpaced competitors Expedia Group, which saw revenue rise 12%, and Booking Holdings, where revenue fell 1% following a $1 billion accounting charge linked to a potential Federal Trade Commission settlement.
Strong Demand Across Regions
The acceleration in Airbnb revenue growth represents a sharp turnaround from the same period last year. During that time, CEO Brian Chesky expressed dissatisfaction with the company’s performance, noting that revenue had increased by only 9.7%. Since then, growth has accelerated in nearly every quarter, driven by what the company described as strong demand across all global regions.
Bookings for nights and seats, a metric that includes homes, hotels, experiences, and services, rose 16%. This figure stands in contrast to the 7% room night growth reported by both Expedia and Booking Holdings, although the metrics are not directly comparable due to differences in what they include. Airbnb attributed the surge to continued momentum in its product roadmap, specifically highlighting improvements in search, merchandising, pricing tools, and flexible payment options.
Expansion Beyond Vacation Rentals
The company is seeing early traction in its efforts to expand beyond traditional home rentals. Airbnb now lists thousands of independent and boutique hotels in 60 top destinations, an increase from just 20 destinations in May. The company noted that approximately 35% of guests who make their first booking for a hotel return to book a home, suggesting a successful cross-selling strategy.
Car rentals have also become a popular addition to the platform. Sourced from Expedia’s CarTrawler service, this offering has gained significant usage among travelers. Additionally, the company’s Reserve Now, Pay Later feature has helped extend booking lead times, providing more stability for hosts and guests alike.
Technology and Cost Efficiency
Artificial intelligence is playing a larger role in Airbnb’s operations. The company now uses AI for customer support in 50 languages. This system has resolved roughly 40% of all support issues without human intervention, cutting support costs per booking by 17%. These efficiency gains contributed to a 35% increase in net income, which reached $1.9 billion for the quarter.
Looking ahead, Airbnb raised its full-year revenue guidance to 16-18% growth, moving up from a previous forecast of mid-teens growth. The company continues to refine its product offerings and leverage technology to maintain its competitive edge in the online travel market.
Source: Skift
