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Airbnb dips as slower growth outlook renews fears of travel demand slowdown
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Airbnb dips as slower growth outlook renews fears of travel demand slowdown
Aug 7, 2025 3:27 AM

(Reuters) -Shares of Airbnb slumped 6% before the bell on Thursday after the company forecast slower growth in the second half of the year, disappointing investors of the sector expecting a rebound in travel demand after strong outlooks from major travel firms.

The vacation home rental's gloomy outlook came as setback to the industry, which saw a rebound in consumer sentiment in July, and was expecting budget-conscious Americans to return to vacations despite tariffs and inflation.

United Airlines and Hilton Worldwide last month forecast an uptick in bookings and strong fourth-quarter revenue growth. Last week, online travel agency Booking Holdings also posted upbeat quarterly results.

"The company (Airbnb) sees tariffs having an impact on margins in the third quarter, with the initial tariffs shock in April leading to a big drop in bookings," said Danni Hewson, head of financial analysis at AJ Bell.

Investors will now focus on results from Expedia Group, due after the bell, to better gauge the health of the travel industry in the United States.

Airbnb attributed its weak growth outlook to tough comparisons with the year-ago period, when strong bookings in Asia and Latin America had helped earnings.

The company expects night bookings growth to moderate year-over-year going into the fourth quarter. It expects the implied take rate, or the ratio of revenue to gross bookings, to remain flat in the third quarter.

So far this year, Airbnb and Expedia shares have both fallen 0.6% each compared with an 11.4% rise in Booking Holdings during the same period.

Airbnb commands a higher forward price-to-earnings multiple of 28.41, compared with Booking that's trading at a more modest 22.69 and Expedia at 11.57.

(Reporting by Kanchana Chakravarty in Bengaluru; Editing by Ronojoy Mazumdar and Shinjini Ganguli)

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