Updated Version 2 - Supported by resilient global travel demand, Airbnb raises its annual revenue growth forecast

Added executives’ commentary from the earnings call and details about the AI lab

Anshuman Tripathy

Reuters, November 5 - Airbnb (ABNB.O) on Thursday raised its full-year 2026 revenue growth forecast, with the vacation rental platform optimistic about the resilience of global leisure travel demand. Its shares rose 11% in after-hours trading.

Despite increasing inflation and geopolitical uncertainty, travel companies remain hopeful for stable international travel demand, supported by business travel and spending by high-net-worth customers.

The San Francisco-based company now expects annual revenue growth to reach “high double digits,” up from its earlier projection of “at least mid double digits.”

The company also approved a new stock buyback plan, with an additional repurchase of up to $12 billion worth of Airbnb Class A common stock.

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Globally, third-quarter nights and experiences booked (this metric includes both accommodation and service bookings) grew 16% year-over-year, reaching 155 million.

Quarterly bookings in North America grew by “low double digits” year-over-year, while the Europe, Middle East and Africa (EMEA) region saw “mid double digit” growth.

Hotel operators such as Hilton (link) and Marriott (link), as well as online travel agencies like Expedia (link) and Booking Holdings (link), remain cautious in their outlook for the fourth quarter, citing rising airfare prices due to the war in Iran and turmoil in parts of Europe.

However, CFO Ellie Mertz said that Airbnb expects to see no substantial impact in the current quarter from unrest in Europe (especially France) or conflicts in the Middle East, but is closely monitoring developments in both regions.

Airbnb also disclosed that in November it sold certain intellectual property for $7.1 million in cash to a private artificial intelligence lab founded by company CEO Brian Chesky.

The company added that it is independently developing an AI assistant to help travelers plan and book trips, which is expected to launch in the first half of 2027.

This quarter, Airbnb’s customer support cost per booking decreased by over 17%, as about 40% of issues were resolved without the need for human agents, compared to one-third in the second quarter.

The company reported diluted earnings per share of $3.16 for the quarter ended September 30, up from $2.21 a year earlier.

Third-quarter revenue rose about 19% to $4.87 billion.Analysts had previously forecast an average revenue of $4.75 billion, according to data compiled by LSEG (London Stock Exchange Group).

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