Airbnb Growth Accelerates Across Australia and Asia

Airbnb accelerated across both mature and expansion markets in the second quarter of 2026. Growth in net nights booked by travelers originating in Australia and the UK increased, while India emerged as one of Airbnb's fastest-growing origin markets, with net nights up 60% year over year and first-time bookers more than doubling. Japan also continued to deliver strong momentum. Globally, Airbnb revenue increased 17% to $3.6 billion and gross booking value rose 16% to $27.2 billion, even as short-term rental regulation became more complex in parts of Australia and Britain.

Airbnb accelerates in Australia and the UK

Airbnb reported accelerating year-over-year growth in net origin nights booked in Australia, the UK, the US and France during the second quarter. The metric refers to bookings made by travelers originating in those countries rather than nights necessarily spent there.

That distinction matters because Australia and the UK are established Airbnb markets where future growth is more difficult to generate simply by introducing consumers to the platform for the first time.

The original News.com.au report highlighted Australia's continued growth despite tighter regulation in parts of the country. Airbnb did not disclose a specific second-quarter percentage for either Australia or the UK, so their performance should not be directly compared with India's 60% increase.

Airbnb revenue rises 17% to $3.6 billion

According to Airbnb's official second-quarter results, revenue increased 17% year over year to $3.6 billion and gross booking value rose 16% to $27.2 billion. Nights and Seats Booked increased 10% to 148.3 million.

Net income reached $816 million, while adjusted earnings before interest, taxes, depreciation and amortization increased 21% to $1.3 billion. The adjusted margin reached 35%.

Gross booking value grew faster than booking volume, reflecting strong demand and a moderate increase in average daily rates. Airbnb therefore benefited from both more transactions and a higher average value per transaction.

India becomes one of Airbnb's fastest-growing markets

India delivered the strongest disclosed country-level growth figure. Origin net nights booked increased 60% year over year in the second quarter, accelerating from roughly 50% in the first quarter.

The number of first-time Indian bookers more than doubled compared with the same period in 2025. ETTravelWorld reported that India remained among Airbnb's fastest-growing origin markets, while Nights and Seats Booked across Asia-Pacific increased at a high-teens rate.

The size of the opportunity comes partly from Airbnb's lower penetration in India than in the US and Western Europe. Growth can come from both domestic tourism and Indians traveling internationally.

The longer-term test will be retention. The commercial value of the current surge depends on how many first-time Indian customers continue booking through Airbnb in subsequent years.

Japan strengthens Airbnb's Asia strategy

Airbnb also identifies Japan as one of its important expansion markets. First-time booker growth remained particularly strong in Brazil, Japan and India during the second quarter, while global first-time bookers increased 11%, the strongest rate in four years.

Origin net nights booked in Japan grew at a high-teens rate, supported by domestic travel momentum. Asia-Pacific was consequently among Airbnb's fastest-growing regions.

The platform's expansion is occurring amid historically high tourism volumes in Japan. The Japan National Tourism Organization estimated 3.442 million international visitors in July 2026, up 0.1% from a year earlier and the highest July figure on record. Seventeen origin markets set July records, including India, the UK and the US.

Domestic travel also matters to Airbnb's Japanese business, making growth less dependent on international arrivals alone.

Expansion markets outpace Airbnb's core markets

Airbnb's geographic mix is gradually changing. Net nights booked in expansion markets are growing at roughly twice the rate of the company's core markets.

The mobile app is reinforcing that strategy. Nights booked through the app increased 23% year over year and accounted for 64% of total nights in the second quarter, up from 59% a year earlier.

Direct app engagement can reduce reliance on external search traffic and gives Airbnb more opportunities to sell additional products to existing travelers.

Hotels and services broaden Airbnb's model

Airbnb is expanding at the same time beyond private homes. The platform added thousands of boutique and independent hotels across more than 20 leading destinations, including New York, Paris, London, Madrid, Rome and Singapore.

Hotels still account for a single-digit share of nights booked but are growing approximately three times faster than the homes business. Around 35% of first-time guests who initially book a hotel subsequently return to Airbnb and book a home within the following year.

Airbnb has also expanded grocery delivery, car rentals, airport pickups, luggage storage and resort day passes. Supply in Airbnb Experiences increased nearly 80% year over year in the second quarter.

The objective is to increase the number of transactions made by each traveler. Hotels also provide a form of diversification in cities where residential short-term rental inventory is constrained by regulation.

Victoria maintains a 7.5% short-stay levy

Australia's regulatory environment is fragmented, with important rules set at state and local levels.

Victoria has imposed a short-stay levy since January 1, 2025. Under the State Revenue Office rules, the levy is 7.5% of the total booking fee for stays of fewer than 28 consecutive days. When the reservation is made through a booking platform, the platform is responsible for registering, reporting and paying the levy.

Principal residences can be exempt under the rules, while hotels, motels and similar accommodation are outside the levy.

Revenue is directed toward social and affordable housing, with 25% allocated to regional Victoria.

Byron Shire caps many rentals at 60 days

Byron Shire in New South Wales uses a different approach. Under NSW Government planning rules, most non-hosted short-term rental properties in the local government area are capped at 60 days in a 365-day period.

Two mapped precincts around Byron Bay town centre and Brunswick Heads retain a 365-day allowance. Hosted accommodation is not subject to the same annual day cap.

The effect of such rules on housing should not be isolated from other factors. Construction, population growth, vacancy rates, financing costs and landlord behavior also shape the availability and price of long-term rentals.

Brisbane abandons proposed permit regime

Brisbane ultimately moved in the opposite direction. The city had prepared a Short Stay Accommodation Local Law 2025 that was intended to introduce mandatory permits from July 1, 2026.

The proposal did not take effect. Brisbane City Council says it decided not to proceed with the new local law, citing changed conditions and concluding that additional regulation was not appropriate at this time.

That decision does not mean all short-term accommodation is automatically lawful. Existing planning requirements, development approvals, building rules and other local obligations can still apply.

Brisbane therefore illustrates how varied Australian regulation has become: Victoria relies on a levy, Byron Shire uses a day cap and Brisbane stepped away from an additional permit system.

Scotland operates mandatory licensing

The UK also lacks a single regulatory model. Scotland has a mandatory short-term let licensing regime administered by local authorities.

According to Scottish Government statistics, 32,317 licences, temporary licences and exemptions were in operation as of December 31, 2025. Around 78%, or 25,131, related to secondary letting where the premises were not the operator's primary home.

The licensing system opened for applications in October 2022. New operators generally need approval before beginning activity, while transitional rules were used for existing operators when the system was introduced.

The data suggest licensing has formalized the sector rather than eliminated it.

England's registration scheme is still pending

England's planned national short-term let registration scheme was not yet in force as of August 21, 2026.

The government has repeatedly confirmed its commitment to the scheme. In a June response to Parliament, the Department for Culture, Media and Sport said Parliament had legislated for a national registration system through the Levelling Up and Regeneration Act 2023, but it did not provide a specific launch date.

The system is intended to provide government and local authorities with more reliable data on short-term rental activity. Registration itself is not equivalent to a cap on supply, but it could give policymakers a stronger evidence base for future regulation.

Airbnb raises its 2026 outlook

Airbnb raised its full-year outlook after the stronger first half. Revenue is now expected to grow at least in the mid-teens in 2026, while adjusted EBITDA margin is forecast at no less than 35.5%.

Third-quarter revenue is projected at $4.69 billion to $4.77 billion, representing growth of 15% to 17%. Gross booking value is expected to increase in the mid-teens, while Nights and Seats Booked should rise at a low-double-digit rate.

Airbnb expects third-quarter adjusted EBITDA margin to be slightly lower than a year earlier because of the timing of investments. The company continues to spend on technology, marketing, services and international expansion.

For India and Japan, the longer-term question is therefore no longer only how quickly Airbnb can acquire users. The company must show that rapid customer growth can translate into repeat bookings and sustainable economics.

As International Investment experts report, Airbnb's latest performance shows that tighter short-term rental rules have not stopped demand growth across large national markets such as Australia and the UK. The Australian picture, however, demonstrates why national averages can be misleading: Victoria's 7.5% levy, Byron Shire's 60-day cap and Brisbane's decision to abandon a proposed permit system create very different conditions within the same country. For Airbnb, the more significant long-term shift is in Asia. India's 60% growth and Japan's strong momentum offer a route to reduce reliance on mature US and European markets, but rapid new-user acquisition still needs to translate into recurring bookings and sustainable profits.

FAQ: Airbnb in Australia, India and Japan

How fast is Airbnb growing in India?

Origin net nights booked by travelers from India increased 60% year over year in Q2 2026. The number of first-time Indian bookers more than doubled.

Is Airbnb growing in Australia?

Yes. Airbnb reported accelerating growth in net origin nights booked by Australian travelers, although it did not disclose a separate percentage for the country.

What short-term rental restrictions apply in Australia?

Rules vary significantly. Victoria imposes a 7.5% levy on most short stays of fewer than 28 days. Most non-hosted rentals in Byron Shire are capped at 60 days a year. Brisbane considered a new permit scheme but abandoned the proposal in May 2026.

How is Airbnb performing in Japan?

Japan is one of Airbnb's key expansion markets. First-time customer growth remains strong and origin net nights booked grew at a high-teens rate during the second quarter.

Is Airbnb growing in the UK?

Yes. Airbnb said net origin nights booked by UK travelers accelerated during the second quarter, although it did not disclose a country-specific percentage.

How is short-term rental regulated in Britain?

Scotland operates mandatory licensing. England is developing a mandatory national registration scheme, but as of August 21, 2026 it had not yet entered into force.

What were Airbnb's global Q2 results?

Revenue increased 17% to $3.6 billion, gross booking value rose 16% to $27.2 billion and Nights and Seats Booked grew 10% to 148.3 million.

What is Airbnb's Q3 2026 outlook?

Airbnb expects revenue of $4.69 billion to $4.77 billion, representing year-over-year growth of 15% to 17%.