Updated Version 2 - Airbnb share price rises on optimistic outlook, defying the cautious sentiment of the broader industry

Updated stock performance in paragraph 1

Reuters, November 6 - On Friday, vacation rental company Airbnb ABNB.O raised its full-year revenue growth forecast, betting on the resilience of global leisure travel demand, sending its shares soaring more than 10%.

This optimistic outlook stands in sharp contrast to recent comments by other online travel agencies, such as Booking Holdings BKNG.O, Expedia EXPE.O, and TripAdvisor TRIP.O, which had previously pointed out challenges brought on by rising airfares due to the Iran war and turmoil in parts of Europe.

Investors and analysts have also been closely watching Airbnb’s expansion initiatives, which are increasingly transforming the company into a more traditional online travel agency, paving the way for fiercer competition with industry peers.

Airbnb expects its annual revenue growth rate to reach the "upper teens," previously forecasting at "at least mid-teens."

"We are back on a growth trajectory," CEO Brian Chesky said on Thursday’s earnings call, noting that demand is accelerating across regions, and emerging markets are maintaining strong momentum.

Globally, "nights and experiences booked"—a metric that includes both room stays and service bookings—increased by 16% in the third quarter to 155 million.

Jefferies equity analyst John Colantuoni wrote in a research note, "Growth is broad-based, with booking volume growth accelerating in all major regions, and first-time bookers achieving the strongest growth rate in years."

Chesky pointed out that hotel bookings accelerated this quarter, and that business is "growing significantly faster" than its core home rentals segment.

The company is also developing an AI-based travel assistant to help travelers plan and book their trips.

Morningstar senior equity analyst Dan Wasiolek said, "We believe that, compared with traditional Google Search, an AI travel advisor will be more disposed to Airbnb’s trusted and cost-saving aggregation, booking, payment, and service features, while securing more favorable unit economics."

"As independent suppliers (100% of room nights) lack these advantages, Airbnb’s platform will maintain its significance."

According to data from London Stock Exchange Group (LSEG), Airbnb’s 12-month forward price-to-earnings ratio stands at 31.86, while TripAdvisor’s is 23.8, Booking’s is 18.31, and Expedia’s is 15.97.

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