New “reserve now, pay later” feature fuels early bookings and signals renewed traveler confidence
Nov 7, 2025
Airbnb reported stronger-than-expected revenue guidance for the holiday quarter, driven by rising U.S. demand and early bookings supported by its new deferred payment feature. The results suggest continued resilience in travel spending despite economic uncertainty and flight capacity concerns.
Key takeaways
- Positive revenue outlook: Airbnb forecasts Q4 revenue between $2.66 billion and $2.72 billion, slightly above analyst expectations.
- Deferred payments boost demand: The “reserve now, pay later” option, launched in August, is encouraging U.S. travelers to book earlier and increasing overall booking volume.
- North America rebounds: Reservations from North American guests rose sharply, representing 30% of total nights booked, offsetting slower international growth earlier in the year.
- Strong quarterly performance: Q3 revenue reached $4.1 billion (up 8.8%), with adjusted EBITDA of $2.1 billion — both exceeding forecasts.
- Ongoing investments: Net income fell short of estimates due to spending on AI, lobbying, and new international markets, but Airbnb raised its full-year margin target to 35%.
- Expanding beyond stays: CEO Brian Chesky announced pilot programs with boutique hotels in Los Angeles, New York, and Madrid, alongside growth in experiences and luxury segments.
- Long-term vision: Airbnb plans to launch at least one new business each year, aiming for more efficient rollouts and diversified revenue streams beyond short-term rentals.
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