Airbnb Signals for Slower Growth in US amid Weak Demand

As U.S. President Donald Trump’s tariff dragging consumer sentiment and raising growth concerns, Airbnb announced its forecast on its second-quarter revenue, with its midpoint figure lower than Wall Street’s estimation.

The company speculated that the revenue would reach between $2.99 to $3.05 billion. Based on analysts consensus for $3.04 billion in revenue, Airbnb finds its mean in revenue guideline falling slightly below market expectations.

Airbnb also expected its rental revenue generated from an occupied room per day to become stagnant while its core profit margin dropped slightly compared to the previous year.

Still, the company’s total revenue for the first quarter has increased 6% to $2.27 billion, ahead of analysts’ anticipation of $2.26 billion. Airbnb’s nights and experiences booked also rose 8% YoY to 143.1 million. If the rate excluded the North America’s bookings, it would increase by 11% YoY.

The company’s net income, however, fell from $264 million to $154 million YoY, citing the higher number of employees, the write off, and the decrease of interest income. Moreover, the CFO, Ellie Mertz, also pointed to the booking window’s shorter rate, indicating the rise of uncertainty and cautiousness among consumers. 

Other related tourism businesses also mentioned similar difficulties. For example, Delta Airline pointed out that the travel demand has stalled, while Hilton revised its 2025 revenue forecast after the hotel company’s CEO stated that the travelers were in a “wait-and-see” mode.