Big news for Airbnb who announced they will be expanding “beyond accommodation” in 2025. On November 7th Airbnb shared its third-quarter 2024 financial results as well as hinting at the company’s business transformation, but we have to wait until next year for the full details.
Airbnb co-founder and CEO Brian Chesky gave a hint about the new business model in May when he said that “the profile will be the center of Airbnb’s solar system, and the home will be one of the many categories that will revolve around the profile,” adding: “It’s strategic for us to acquire more accounts.”
Now, in a conference call with stock analysts, Chesky said that Icons and the new group travel features have alone yielded 1.7 million new profiles since their launch in May. Along with the new profiles, Icons has also generated 60 million visits to the website and 1 billion impressions on social media.
He also noted that the platform will bring back Airbnb Experiences in May 2025. Experiences could increase Airbnb usage as this time they won’t be limited to travel, Chesky said.
Airbnb’s Summer Performance Sets the Stage for 2025
Airbnb’s performance this summer was extremely positive, specifically when we look at:
** Nights and Experiences booked were up 8% compared to the same quarter in 2023, reaching 122.8 million. The growth is partly due to its app strategy, as nights booked on its app increased 18% year-over-year in Q3. App bookings now represent 58% of total nights booked—up from 53% in the same period last year.
** Continued growth in first-time bookers, particularly from younger travelers.
** Third-quarter revenue was $3.7 billion, up 10% year-over-year. Revenue increased to $3.7 billion in Q3 2024 from $3.4 billion in the same period of last year, primarily due to steady growth in room nights and modest growth in Average Daily Rate (“ADR”).
** Third quarter net revenue was $1.4 billion, representing a net income margin of 37%. Net income decreased to $1.4 billion in Q3 2024 from $4.4 billion in Q3 2023, primarily due to the release of the prior-year valuation allowance of its $2.8 billion U.S. deferred tax assets and the recognition of non-cash tax charges related to the use of certain assets this year.
** The platform’s global markets strategy is working. In Q3, average room-night growth in new markets was more than double the rate of its core markets. New markets include Japan, Vietnam, Denmark and Poland. “By spring 2025, we expect to offer nearly 40 local payment methods across five continents,” an Airbnb spokesperson said.
** The current fourth quarter is off to a strong start, with September revenue forecast to be between $2.39 billion and $2.44 billion based on modest increases in ADR and booking growth that is higher than Q4 2023.
Airbnb 2025 quality assurance
Now, even more than ever there is a particular emphasis on quality, in fact, since last year Airbnb have removed more than 300,000 listings that didn’t make the grade.
As a result, reviews and comments have improved. The platform has also made it easier for guests to find the best places to stay with the Guest Favorites category. Since its launch a year ago, more than 200 million nights have been booked on Guest Favorites listings, and Superhost nights have increased by 21%. Finally, cancellations, which whilst rare, are a major concern for guests, have decreased. In Q3 cancellation rates fell by almost 30% compared to last year.
The company’s co-founder and CEO, Brian Chesky, expressed his satisfaction with the third-quarter results, emphasizing that in 2025, “we will continue our growth initiatives, including offering new products and services, as well as expanding into global markets… We are excited to share more about our growth and investment plans for 2025 early next year.”
