Airbnb Lifts Full-Year Outlook Despite Iran Conflict Impact

Airbnb raised its full-year revenue growth outlook to the low to mid teens from 12% following a strong first quarter, though the company warned that geopolitical tensions are creating headwinds. According to CNBC, the company reported Q1 revenue up 18% year on year with net income of US$160 million, beating analyst expectations on multiple metrics.

Q1 Financial Performance Exceeds Expectations

Gross booking value rose 19% to US$29.2 billion, while nights and seats booked increased 9% to 156.2 million, both surpassing analyst estimates. Adjusted EBITDA reached US$519 million, above the US$485 million expected by LSEG. For the second quarter, Airbnb forecast revenue of US$3.54 billion to US$3.60 billion, above the US$3.46 billion analysts expected.

Geopolitical Headwinds Limiting Growth

The company warned that the war involving Iran is hurting demand in Europe, the Middle East, Africa, and Asia Pacific due to higher cancellations, flight disruptions, and regional uncertainty. Airbnb said the conflict would create a 100-basis-point drag on bookings and slow growth from the first quarter.

Product Features Driving Booking Growth

Airbnb’s recent product updates are contributing significantly to growth. Reserve Now, Pay Later (RNPL), simpler fees, and more flexible cancellation terms added an estimated three percentage points to gross booking value in the first quarter. RNPL, which lets travelers book immediately and pay later, now makes up about 20% of global gross booking value.

These changes are attracting new customers. Growth in first-time bookers reached 10%, the fastest pace since 2022, with strong gains in Brazil, Japan, and India.

AI Integration and Operational Efficiency

Airbnb is reworking its operations with artificial intelligence. Nearly 60% of the code its engineers produce now comes from AI, according to CEO Brian Chesky. An AI assistant now handles more than 40% of customer support cases without human help, which helped lower cost per booking by about 10% from a year earlier.

Hotel Business and Event-Driven Supply Expansion

Airbnb’s hotel business is growing at more than twice the pace of the wider company. More than 55% of guests who book a hotel on Airbnb later return to book a home. The company is also using large events to expand supply—since outreach began in October for the FIFA World Cup 2026, more than 100,000 homes have been listed on Airbnb for the first time.