Booking growth and supply expansion

Airbnb recorded a total of 491.5 million nights and experiences booked throughout 2024, representing a 10% increase over the previous year. This growth accelerated in the fourth quarter, with 111 million bookings, up 12% from the same period in 2023. The gross value of bookings also increased by 12% in the quarter. 

Average daily rate (ADR) was $158 in the fourth quarter, up 1% year-on-year. Excluding the impact of currency fluctuations, ADR increased 2% across all regions, reflecting a pricing strategy that is in line with market conditions. 

Strategic initiatives and diversification

In October 2024, Airbnb launched the Co-Host Network, a solution designed to make it easier for hosts to collaborate with local co-hosts on property management. In its first four months, this initiative has supported close to 100,000 listings, which generate approximately double the revenue compared to similar listings. The network is currently operational in 10 countries, with plans to expand to Japan and Korea in the coming months. 

In addition, the company has implemented ongoing improvements to its platform, including a streamlined search, improved navigation and more flexible payment options. The introduction of local payment methods in nearly two dozen countries, including Brazil, Korea and Indonesia, has contributed to higher conversion rates, with expectations to consolidate these gains by 2025. 

Outlook for 2025

Looking ahead, Airbnb has announced its intention to invest up to $250 million by 2025 to expand its business beyond short-term accommodation rentals. While specific details about the new business lines have not been disclosed, co-founder and CEO Brian Chesky has indicated that the strategy will focus on identifying and meeting the additional needs of travellers by offering experiences and services that enrich their stays. 

Chesky also noted that while Airbnb is used by 1.6 billion devices per year, most people use the platform once or twice a year. The company aims to increase this frequency of use, aiming for users to interact with Airbnb once or twice a week in the future. 

Airbnb is expected to reveal more details about its expansion and the new offerings it plans to introduce to the market in May 2025 during its Summer Release update. This initiative is part of a roadmap that is more ambitious than previous ones, with the aim of transforming the platform and consolidating its position in the tourism and hospitality industry. 

Despite the positive results, Airbnb faces challenges in the short-term rental market, including increasing competition and stricter regulations in different countries. The company has warned that the first quarter of 2025 may not be as favourable due to these factors, estimating revenues between $2.23bn and $2.27bn for the period, which would represent year-on-year growth of 4% to 6%. 

However, with its commitment to diversification and technological innovation, Airbnb seeks to transform its business model and offer travellers a wider range of services and experiences, adapting to changing market trends and strengthening its position as a leader in the travel industry.