Airbnb reported a 10% rise in revenue to $4.1bn for the third quarter, as travellers brought forward plans and booked further in advance.
The short-term rental platform said demand strengthened through the period and into October, with early reservations helping lift sales above Wall Street expectations compiled by FactSet ($4.08bn).
Gross booking value (GBV) reached $22.9bn, topping the $21.9bn consensus, as the “reserve now, pay later” option encouraged customers to secure stays without upfront payment.
Stronger travel demand supports Airbnb revenue
The company said travel demand improved quarter on quarter, with customers demonstrating more confidence in making future holiday plans.
That contrasts with earlier in the year when economic uncertainty led many to delay decisions.
The shift towards advance bookings—an important trend for the online travel sector—boosted visibility on future nights booked and supported GBV growth, a key metric for platforms reliant on global tourism flows and average daily rates.
Earnings steady as tax charge weighs on profit
Net income was broadly unchanged at $1.37bn for the three months to 30 September. Earnings per share rose to $2.21 from $2.13 a year earlier, though that fell short of the $2.31 per share expected by analysts.
The company said quarterly profit included a higher tax expense linked to the One Big Beautiful Bill Act passed last summer, which means it is no longer using its corporate alternative minimum tax credit. As a result, Airbnb wrote off a $213m tax asset.
Looking ahead, Airbnb expects the legislation to lower its tax burden over time. Management now forecasts an effective tax rate in the mid-to-high teens in 2026, compared with prior guidance of about 20%.
Investors following ABNB stock and Airbnb earnings guidance will watch whether the lower structural tax rate translates into stronger net margins in future periods.
Outlook signals modest fourth-quarter growth
For the fourth quarter, Airbnb guided sales in a range of $2.66bn to $2.72bn, bracketing the $2.67bn projection from Wall Street. The company expects GBV to grow at a low double-digit percentage rate, with increases driven by average daily rates and more nights and seats booked.
The commentary suggests continued resilience in travel demand into year-end, though the guidance implies a slower revenue run-rate than Q3’s double-digit growth.
Analysts tracking online travel, short-term rentals and alternative accommodation markets will focus on whether early-booking patterns persist into 2025.
Key watchpoints include the pace of international travel recovery, consumer sensitivity to pricing, and the contribution from payment flexibility products such as reserve-now-pay-later.
Advance-booking trend underpins strategy
Airbnb highlighted that customers are booking further in advance partly because of its payment flexibility, a feature designed to reduce friction for budget-conscious travellers.
Earlier bookings can improve platform liquidity, help hosts plan inventory and support steadier cash flow across peak seasons.
For search interest around “Airbnb revenue”, “Airbnb Q3 results”, “Airbnb guidance” and “gross booking value”, the latest update points to a business benefitting from shifting consumer behaviour rather than promotional discounting.
While macro conditions remain a factor for discretionary travel, the company’s outlook and GBV trajectory indicate that early reservations are providing a cushion.
If average daily rates remain firm and nights booked continue to rise, Airbnb sales growth could stay aligned with broader travel recovery trends—even as comparisons toughen.
