Slower international travel and rising hotel competition could test the company’s growth narrative
Oct 7, 2025
Airbnb’s strong quarterly earnings mask growing signs of weakness in travel demand. With international travel softening, booking windows shortening, and alternative accommodation growth slowing, the company’s high valuation and dependence on leisure travel make it vulnerable compared to hotel-focused rivals like Expedia and Booking Holdings.
Key takeaways
- Softening travel demand: Wedbush data points to weaker international and domestic travel, particularly inbound trips from Europe to the U.S., hurting Airbnb’s exposure to high-value, long-haul stays.
- Shorter booking windows: Travelers are booking later, favoring hotel operators with stronger last-minute booking capabilities and loyalty ecosystems.
- Valuation concerns: Airbnb trades at a significant premium to sector peers despite slower growth, raising questions about sustainability amid rising competition.
- Strong but slowing performance: 2Q25 revenue rose 13% to $3.1 billion, with strong cash flow and buybacks, yet room-night growth is losing momentum heading into Q3.
- Competition gains ground: Expedia and Booking Holdings benefit from hotel-heavy models and expanding loyalty programs, offering more resilience in a cooling travel market.
- Shifting market sentiment: Investors are questioning whether Airbnb can maintain its growth premium or if it’s maturing into a slower-growth travel stock.
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