Airbnb to Expand 'Beyond Accommodations' in 2025

Airbnb plans unspecified expansion "beyond accommodations" with details to be unveiled next year.

The disclosure came as summer quarter bookings rose by 8% to 122.8 million year-on-year as more people used its app to access accommodation.

The proportion of mobile bookings rose by 5% to reach 58% with the home-sharing giant also reporting continued growth in first-time bookers, particularly younger travellers.

The app has seen 50 upgrades since October in an effort to make it more personalised and easier for first-time users.

The business hailed its global markets strategy, with the first domestic travel brand campaign in Japan and the introduction of more local payment options in countries such as Vietnam, Denmark and Poland.

"While our timing and investment level vary by market, our strategy is consistent: make Airbnb local and relevant," the company added.

"By spring 2025, we expect to offer nearly 40 local payment methods across five continents.

"Outside of our core markets, there are many countries and regions that remain under-penetrated. We’re focused on these expansion markets as part of our global markets strategy, and we believe our approach is working.

"We’ll remain focused on accelerating growth while preparing for Airbnb’s next chapter, which will take us beyond accommodations. You’ll see more on this next year."

More than 300,000 "low-quality" listings that failed to meet guest expectations have been removed since last year to give a total of eight million as part of a focus on improving the standard of properties on offer.

A move to reduce cancellations by accommodation hosts saw the level reduced by almost 30% in the third quarter.

Although rare, hosts cancellations are a "significant pain point" for guests, Airbnb said.

The company reported a gross booking value of $20.1 billion and revenue of $3.73 billion, both up 10% on the same three months last year. The average daily rate in the quarter increased by one per cent to $164 over the same period in 2023.

Net income was $1.4 billion as quarterly revenue rose by 10% to $3.7 billion. This came "despite a softer start due to shorter booking lead times compared to 2023".

The current quarter got off to a "great start" building on "robust momentum" in September, with revenue projected at between $2.39 billion and $2.44 billion based on a modest rise in average daily rates and bookings growth higher than the final three months of 2023.

Co-founder and chief executive Brian Chesky said: "We had another strong quarter at Airbnb, with bookings growth accelerating throughout Q3 and into Q4.

"I’m especially proud of the growth across our expansion markets, app bookings, and guest favourite listings, and I’m looking forward to another strong holiday travel season."

Looking forward, Airbnb said: "For the full-year 2025, we’ll continue to pursue our growth initiatives, including offering new products and services, as well as expanding in global markets.

"We’re excited to share more about our 2025 growth and investment plans early next year."