Airbnb boosts annual sales outlook while spending picks up
The company’s optimistic outlook suggests that global travel demand will remain healthy
Add BT as a preferred source
[NEW YORK] Airbnb boosted its annual forecast on robust bookings in the major markets in the Americas, while it posted a big jump in spending as part of an effort to diversify the business.
The short-term rental company said that it expects annual revenue growth to “accelerate to low- to mid-teens”. In February, Airbnb told investors it anticipated annual sales would gain “at least low double digits”. Analysts, on average, projected a 12 per cent jump, according to data compiled by Bloomberg.
“Our 2026 outlook is underpinned by continued momentum in our core business – particularly strong nights booked growth in North America and Latin America, our fastest-growing region,” Airbnb said on Thursday (May 7) in a letter to shareholders.
Still, the company posted first-quarter net income of US$160 million, compared with analysts’ average estimate of US$180 million. Sales and marketing expenses rose 33 per cent from a year ago to US$751 million, far exceeding the US$681 million that Wall Street projected.
Airbnb, which is best known for its short-term home rentals, has begun offering rooms at boutique hotels in markets where short-term rentals are tightly regulated. It is also adding new a-la-carte services in select markets, like Instacart grocery-stocking, as well as car pick-ups at airports.
The shares gained about 1 per cent in extended trading after closing at US$140.46 in New York. The stock had been up about 3.5 per cent this year.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Airbnb’s optimistic outlook suggests that global travel demand will remain healthy, even as companies like United Airlines, American Airlines and Booking Holdings cut their forecasts based on predictions that the war in Iran would limit travel in the region.
Airbnb said that there were increased cancellations during the first quarter across the region that includes the Middle East. But overall nights booked still jumped 9 per cent from a year ago, thanks to much-stronger growth elsewhere, and topped analysts’ estimates.
In Asia, first-time bookers in India grew more than 75 per cent, and in Latin America, Mexico continued to post double-digit nights growth.
SEE ALSO
The company expects continued headwinds of about 100 bps from the Middle East conflict in the second quarter, which would result in slower growth in nights and seats booked overall in the period.
But the overall demand momentum bodes well for Airbnb, which is expecting to welcome tens of thousands of new guests and hosts ahead of the World Cup, the global football tournament that will be held in the US, Canada and Mexico in June and July.
More than 100,000 homes in the 16 host cities have been listed on Airbnb for the first time, the company said.
Airbnb projected revenue for the three months ending June will be US$3.54 billion to US$3.6 billion, which also surpassed estimates. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
OCBC Q1 profit rises 5% to S$1.97 billion, beats estimates
Singapore Instagram seller must pay Louis Vuitton S$510,000 in damages over counterfeit goods case
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
