Airbnb’s strong quarterly results on Wednesday showed that despite economic uncertainty due to global tariffs and geopolitical instability, consumers are resilient.
But the company, led by CEO Brian Chesky, suggested to investors in a letter to shareholders that things could turn less positive now and in the months ahead, when some tariffs are due to go into force. “While we have seen an acceleration of nights booked growth in July, particularly in North America, we are mindful of the tougher year-over-year comparison towards the end of the quarter. This dynamic will continue into Q4, putting pressure on growth rates later in the year.”
The online global marketplace for short-term housing rentals reported a notable uptick in global travel demand over April through May, a quarter that included the Trump administration’s “Liberation Day” tariffs on most countries and on-again, off-again levies on major trading partners, including the European Union. Growth in the number of nights booked in the U.S. accelerated each month throughout the quarter ended June, fueled by a rise in domestic travel. The company reported low-single-digit growth in nights and seats (for tours) booked in North America compared to a year ago.
The results show that amid doubts about inflation and economic stability, some consumers are willing to spend at least part of their discretionary income on travel.
Global sales spiked 13% to $3.1 billion, compared to analysts’ consensus estimates of $3.04 billion. Germany showed double-digit growth, as did Latin America, particularly Brazil, Asia Pacific also reported mid-teens growth, driven by accelerated domestic travel and a rise in first-time bookers in Japan.
The travel platform has a new growth strategy anchored by a redesigned technology platform aimed at expansion into longer-term rentals and concierge travel services. It’s overhauling its mobile app to make it more like Amazon’s and to become more transparent with its fees. In addition, Airbnb debuted in the spring an AI bot for customer service that the company claims is already being used by 50% of its customers.
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