By Aishwarya Jain and Doyinsola Oladipo
May 7 (Reuters) - Vacation rental company Airbnb on Thursday said it expects growth in nights booked during the second quarter to decelerate compared with the prior three months, hurt by travel disruptions in the Middle East.
Travel demand in the region fell sharply after the U.S. and Israel attacked Iran in late February, with the escalating conflict triggering airspace closures across major tourism hubs including Dubai and prompting airlines to suspend routes.
Although some carriers have since resumed operations and peace negotiations are ongoing, international travelers remain cautious amid persistent fears of renewed conflict.
Joining peers such as Booking Holdings and Marriott in flagging business disruption from the conflict, Airbnb said it saw elevated cancellations in Europe, Middle East and Africa, as well as in Asia Pacific.
Shares of the company were down 1.57% in after-market trading.
Last week, Booking said the war's impact was visible in broader travel patterns, particularly in transit corridors such as the one between Europe and Asia.
Airbnb said the conflict weighed on nights booked growth in EMEA in the first quarter and expects it to remain a headwind in the second half of the year.
It also expects the conflict to lower growth in its second-quarter nights and seats booked, a metric that counts both rooms and services booked on its platform, by roughly 1 percentage point.
However, it raised its 2026 revenue growth forecast to the "low to mid-teens", compared with "at least low double-digits" earlier, banking on strong travel demand and higher pricing for vacation rentals in North America and Latin America. Analysts on average expect revenue to grow 12% during the year.
Travel demand in the U.S., which represents about 30% of Airbnb's room nights, is beginning to show signs of a rebound after a K-shaped market weighed on demand for budget and midscale offerings even as the premium and luxury segments held up well.
The recovery was in part driven by Airbnb's reserve-now, pay-later feature, which enables travelers to split the cost of their stay over time and made up roughly 20% of global bookings.
In the first quarter, booked nights in North America grew in the high single-digits from a year earlier. Nights and seats booked in Latin America, which is Airbnb's fastest-growing market, rose in the "high-teens", helped by strong demand in Brazil and Mexico.
(Reporting by Aishwarya Jain in Bengaluru and Doyinsola Oladipo in New York; Editing by Jonathan Ananda)
