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US: Airbnb has recorded its fastest revenue growth in more than three years, as its Reserve Now, Pay Later option helped increase bookings during the third quarter of 2026.
Revenue rose 19 per cent year on year to US$4.9 billion, while gross booking value increased 21 per cent to US$27.7 billion. Nights and Seats Booked grew 16 per cent to 155 million and average daily rate rose four per cent to US$179.
Airbnb estimated that Reserve Now, Pay Later contributed three percentage points to booking growth. Guests using the option generally booked earlier and selected more expensive properties.
However, Airbnb’s overall cancellation rate increased from approximately 16 per cent to 19 per cent. The company said bookings made without upfront payment have experienced higher cancellation rates.
Airbnb also confirmed that nearly all remaining hosts have moved to its single 15.5 per cent service fee.
During the earnings call, CEO Brian Chesky said general-purpose AI agents such as Muse and Instinct were generating a “very non-material” number of Airbnb bookings.
Chesky said he did not view external AI agents as a threat and believed they could become another discovery channel. Airbnb plans to begin rolling out its own travel-focused AI agent during the first half of 2027.
The company expects fourth-quarter revenue growth of between 16 and 18 per cent.
Highlights:
- Airbnb generated US$4.9 billion in Q3 2026 revenue, up 19 per cent year on year.
- The company recorded its fastest revenue growth in more than three years.
- Gross booking value increased 21 per cent to US$27.7 billion.
- Nights and Seats Booked rose 16 per cent to 155 million.
- Reserve Now, Pay Later contributed an estimated three percentage points to booking growth.
- Airbnb’s overall cancellation rate increased from approximately 16 to 19 per cent.
- Nearly all remaining hosts have moved to Airbnb’s single 15.5 per cent service fee.
- Airbnb plans to begin rolling out its own travel-focused AI agent in the first half of 2027.
- CEO Brian Chesky said external AI agents currently generate very few Airbnb bookings.
- Airbnb expects revenue growth of between 16 and 18 per cent in Q4 2026.
