Airbnb, Inc. (ABNB) Business Profile

What it does

Airbnb operates an online marketplace that connects guests with hosts offering places to stay, experiences and services. Guests use its website or app to find and book offerings; hosts use the platform to list and manage them. The marketplace operates across more than 220 countries and regions. Airbnb was founded in 2008, is headquartered in San Francisco, and is led by chief executive Brian Chesky.

Stays are the core of the business. They include homes offered by hosts, while Airbnb has also expanded its hotel offering. Experiences give guests activities to book, and services extend the platform into other parts of a trip. In 2026, Airbnb announced services including meal delivery, laundry, baby gear, ski gear and boat rentals. It also offers car rentals through a partner.

For hosts, Airbnb provides tools for listing setup, scheduling, pricing, payments and communication with guests. Its Co-Host Network connects hosts with experienced co-hosts who can help manage listings and bookings. For guests, the app combines search and booking with payment options, reviews and support.

Airbnb also provides protections for hosts and guests. These include property damage and liability coverage for hosts, as well as assistance for guests facing issues such as host cancellations, inability to check in or inaccurate listings.

How it makes money

Revenue: $12.2 billion in FY2025; $4.9 billion in Q3 2026.

Airbnb earns service fees from customers using its marketplace. For stays, the fee is a percentage of the booking value before taxes and varies with factors including the booking value, length of stay, geography and type of host. For experiences and services, Airbnb earns a host fee. Substantially all of its revenue has come from stays booked on the platform.

In October 2026, Airbnb completed the final phase of a fee simplification initiative, moving nearly all remaining hosts to a single 15.5% service fee. Airbnb says guest travel insurance also generates revenue, with revenue from that product growing in Q3 2026.

Airbnb generally collects its service fees when a guest books, but recognizes the revenue when the guest checks in. Fees collected before check-in are recorded as unearned fees. Revenue is reported net of incentives and refunds, including promotions designed to encourage use of the platform and attract customers.

Gross booking value measures the dollar value of bookings, including host earnings, service fees, cleaning fees and taxes, net of cancellations and alterations. It is not the same as Airbnb’s revenue: much of the booking value belongs to hosts or covers other charges. Bookings can also precede check-in by months, so a period’s gross booking value and revenue reflect different transactions.

Revenue depends on bookings rather than a recurring subscription. Airbnb tracks nights booked for stays and seats booked for experiences and services, net of cancellations and alterations. Repeat guests can contribute to growth in those measures, alongside new customers. Travel patterns also make the business seasonal: revenue has historically been highest in the third quarter and lowest in the first.

Customers and how it sells

Airbnb serves both hosts and guests. Hosts supply homes, experiences and services; guests discover and book them through the website and mobile app. Airbnb had over 5 million hosts, who had welcomed over 2.5 billion guest arrivals, and its offerings collectively reached over 220 countries and regions.

Guests can use reviews, maps and search tools to evaluate listings, and they can choose from payment options including Pay Less Upfront and Reserve Now, Pay Later. Airbnb introduced AI search in 2026 so guests can describe what they want in their own words. In Q3 2026, first-time booker growth accelerated 13%, and 66% of total nights booked were in the app.

Airbnb also reaches travelers through partnerships. In October 2026, it launched an exclusive partnership with American Express, bringing more than 1 million Airbnb listings to Amex Travel. Airbnb said nearly a quarter of the early bookings through Amex Travel came from guests new to Airbnb.

Bookings and revenue are spread across regions, including North America, Europe, the Middle East and Africa, Latin America, and Asia Pacific. In 2024 and 2025, no single city represented more than 2% of revenue before adjustments for incentives and refunds. Airbnb uses localized product updates and marketing to raise awareness in less mature markets.

Suppliers and costs

Hosts supply the homes, experiences and services available to guests. Airbnb provides listing, payment, pricing and support tools, while hosts and co-hosts manage the underlying offerings. For car rentals, Airbnb uses a partnership with Car Trawler that directs customers to the partner’s service.

Airbnb’s cost of revenue includes payment processing, chargebacks, third-party data centers and amortization of developed software and acquired technology. As merchant of record, Airbnb bears payment processing costs for bookings, including chargebacks from fraud and other causes. It also has a commercial agreement with a data hosting provider requiring it to spend or incur at least $1.7 billion for vendor services through 2031.

Operations and support costs include staff and third-party providers who help customers by phone, email and chat, as well as refunds, credits and host protection expenses. As of December 31, 2025, Airbnb relied on approximately 13,000 third-party workers for the majority of its community support contacts.

Other costs include product development staff, marketing, administration and professional services. In Q3 2026, Airbnb said approximately 40% of customer support issues were resolved without a human agent, and support cost per booking had declined more than 17% year over year.

Competitive position

Airbnb competes for both hosts and guests. Hosts can choose among platforms and other ways to list their offerings, while guests can book accommodations, experiences and services elsewhere. Airbnb competes on factors including booking volume, fees, listing availability, all-in cost, ease of use, trust, safety and support.

Its travel agency competitors include Booking Holdings, Expedia Group and Trip.com Group. Google competes through search and travel products. Hotel chains such as Marriott, Hilton, Accor and Wyndham offer another accommodation option, while Viator, GetYourGuide and Klook compete in experiences and activities. Property managers and marketplaces focused on guest services also compete for parts of the business.

Our reading: Airbnb’s host and guest network is a source of competitive strength because its scale gives guests a broad choice and gives hosts access to potential bookings, although both sides have other options. Its brand and direct channels also support its position: Airbnb says its brand and communications strategy allow it to rely less on paid marketing.

Our reading: Trust tools and host protections support the marketplace but do not remove the reputational risk of incidents involving hosts or guests. Exclusive inventory can differentiate the offering; Airbnb believes over 60% of its inventory is exclusive to its platform, though its expansion into hotels and services also includes offerings available elsewhere.

Growth opportunities

Airbnb’s strategy is to improve its core service, bring the platform to more markets and expand beyond stays. Its approach to less mature markets includes localized product changes and marketing. It has also redesigned its app and added search, booking and personalization features across its offerings.

Revenue increased 10% to $12.2 billion in 2025, primarily because of more check-ins and a modest increase in average daily rate. In Q3 2026, revenue grew 19% year over year to $4.9 billion, while gross booking value grew 21% to $27.7 billion.

Hotels are one expansion area. Airbnb said hotel bookings accelerated in Q3 2026 and that approximately 35% of guests whose first booking is a hotel return to book a home within a year. The company estimates the hotel market at $900 billion and says its hotel business is growing faster than its core business.

Services and partnerships offer additional routes to growth. Airbnb has added offerings such as car rentals and meal delivery, and its American Express partnership makes listings available through Amex Travel. Airbnb is also building an AI travel agent with a custom interface and plans to start rolling it out to guests in the first half of next year. It expects the agent over time to help guests plan an entire trip on Airbnb.

Structural risks

• Regulation and taxes: Short-term rental rules vary by jurisdiction and can restrict hosting. New York City’s regulations resulted in a de facto ban on short-term rental activities. Airbnb also faces uncertainty over lodging and other non-income tax obligations.
• Trust and safety: Criminal, violent, dangerous or fraudulent actions by hosts, guests or third parties could undermine confidence in the platform and harm Airbnb’s ability to attract and retain users. Data privacy or security failures could also result in liability, regulatory scrutiny and loss of trust.
• Travel demand: A downturn or disruption in travel and hospitality could adversely affect results. Health concerns, natural disasters, wars, political instability and other events can reduce travel or lead to cancellations.
• Competition and distribution: Airbnb competes for hosts and guests, including with search engines that can influence traffic and promote their own travel services. Restrictions on app distribution by technology companies could affect Airbnb’s ability to reach users.
• Expansion and execution: Airbnb may not sustain its revenue growth or manage new opportunities effectively. Acquisitions can bring integration costs, liabilities and challenges retaining employees, customers and business relationships.

Bottom line

Our reading

Airbnb is a fee-based marketplace whose results depend on hosts supplying listings and guests booking them, with most revenue still coming from stays. Its reach, brand and trust systems support that model, while hotels, services and partnerships extend it into more parts of travel. The exposure is to travel demand, regulation and incidents that weaken trust, as well as competition for both sides of the marketplace.