Vacation rental marketplace Airbnb said it expects bookings for nights in the second quarter to grow more slowly than they did in the preceding three-month period, driven in part by travel interruptions linked to the conflict in the Middle East.
According to the company, travel demand in the region plunged following U.S. and Israeli strikes on Iran in late February. The escalating conflict prompted airspace closures at important tourism hubs, including Dubai, and led multiple carriers to suspend routes. While some airlines have restarted services and peace talks continue, the company reported that international travellers are remaining cautious amid the risk of renewed fighting.
Airbnb said it experienced higher-than-normal cancellation rates across Europe, the Middle East and Africa (EMEA), and in the Asia Pacific region. The company joined peers, including Booking Holdings and Marriott, in noting operational disruption from the conflict. Booking had earlier said the war was altering travel patterns broadly, especially affecting key transit corridors between Europe and Asia.
Management said the conflict reduced nights booked growth in EMEA during the first quarter and expects it to continue to be a headwind through the second half of the year. For the second quarter specifically, the company estimated the conflict would depress growth in its nights and seats booked metric - which counts both accommodations and services booked on the platform - by roughly 1 percentage point.
Despite the near-term drag, Airbnb raised its revenue growth projection for 2026 to the "low- to mid-teens," up from a prior outlook of "at least low double-digits." The company cited resilient travel demand and higher pricing for vacation rentals in North America and Latin America as factors supporting the stronger long-term forecast. Analysts’ consensus expectations, on average, call for about 12% revenue growth for the year.
Airbnb also provided regional details on demand trends. The U.S. travel segment - which the company said accounts for roughly 30% of its room nights - has begun to show signs of recovery following a K-shaped market that had weighed on demand for budget and midscale options while premium and luxury segments remained more resilient.
Part of the recovery in the U.S. was attributed to Airbnb’s reserve-now, pay-later capability, which allows travellers to split the cost of a stay over time. Airbnb said that feature accounted for roughly 20% of global bookings. In the first quarter, booked nights in North America rose in the high single-digits year over year.
Latin America remained the company’s fastest-growing region. Nights and seats booked in Latin America increased in the "high-teens," with particularly strong demand reported in Brazil and Mexico.
Context for market participants - The company’s guidance and regional performance notes highlight a near-term sensitivity of international travel to geopolitical shocks and a continued strength in pricing power and demand in the Americas, which together informed the raised 2026 revenue outlook.