Airbnb falls behind peers as revenue and gross booking growth lag

Slowing momentum highlights execution and margin challenges amid a broader strategic shift

Airbnb is increasingly falling behind key competitors as its revenue and gross bookings grow more slowly than peers, particularly Booking Holdings. While the company is investing heavily in experiences, social features, and AI, growth in its core accommodation business has decelerated to single digits and profitability has come under pressure. Competitors have expanded more aggressively in both traditional hotels and alternative accommodations, narrowing Airbnb’s historical advantage.

Key takeaways

• Lagging growth versus competitors: Airbnb is growing revenue and gross bookings more slowly than peers, signaling a loss of relative momentum in its core markets.
• Single-digit growth returns: Recent quarters mark a shift back to single-digit revenue growth, a notable slowdown outside pandemic-impacted periods.
• Strategic focus beyond core lodging: Increased emphasis on experiences, social features, and AI introduces execution risk while core marketplace growth weakens.
• Delayed hotel expansion: Airbnb’s more aggressive move into hotels comes late, after competitors have already built scale in this segment.
• Margin pressure intensifies: Higher spending on R&D and marketing is outpacing revenue growth, leading to declining EBITDA and net income margins.
• Rising competitive intensity: Booking continues to extend its lead, while Expedia is also narrowing the gap, increasing pressure on Airbnb’s market position.

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