Airbnb forecast revenue above estimates on premium rentals demand
It is also partnering boutique and independent hotels
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AIRBNB forecast first-quarter revenue above Wall Street estimates on Thursday, as the vacation rental company banks on premium bookings to counter easing demand from cost-conscious customers.
Shares of the travel company rose about 5 per cent in volatile after-market trading.
The company projected revenue between US$2.59 billion and US$2.63 billion for the quarter, compared with analysts’ average estimate of US$2.53 billion, according to data compiled by LSEG.
Travel companies, including hotel operator Marriott and United Airlines, have noted that high-end travellers are buoying results as the lower-end customers struggle amid sticky inflation and economic uncertainty.
San Francisco-based Airbnb expects 2026 revenue to increase “at least low double-digits”, roughly in line with analysts’ estimates of 10.24 per cent.
The firm, however, does not expect adjusted core profit margin growth this year as it continues to reinvest in marketing, product and technology.
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In May 2025, Airbnb launched a new segment that allows customers to book services such as a private chef or yoga instructor, allowing it to compete better with hotels, which typically offer a larger selection of frills.
However, in the fourth quarter, half of Airbnb‘s experiences bookings were not attached to an accommodation booking.
The company is also pursuing an expansion in hotels offered by partnering with boutique and independent hotels in cities such as New York and Madrid, where regulations have limited supply for rentals.
“We believe bringing more hotels onto the platform can increase our total addressable market,” Airbnb said in a letter to shareholders.
During the fourth quarter, its earnings per share came in at 56 cents compared to 73 cents a year earlier. It posted quarterly revenue of US$2.78 billion, compared to expectations of US$2.71 billion. REUTERS
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