Airbnb boosts annual sales outlook while spending picks up

[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 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 pickups at airports.

The shares gained about 1 per cent in extended trading after closing at US$140.46 in New York. The stock is up about 3.5 per cent this year.

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 Q1 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.

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The company expects continued headwinds of about 100 basis points from the Middle East conflict in Q2, 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