At a time when hoteliers have largely had muted supply growth, competition from short-term rental platform Airbnb keeps growing. The company posted a 19% year-over-year increase in active listings in the third quarter.

During the company's earnings call Wednesday, Brian Chesky, the co-founder and CEO, called recent regulatory action in New York City requiring hosts to jump through more hoops to list their units on Airbnb anti-consumer and a "cautionary tale" for lawmakers.

Even so, Chesky said, San Francisco-based Airbnb's marketing efforts touting the benefits of offering accommodations through the platform are bearing fruit in its supply numbers.

"We're making hosting mainstream," he said. "We've been focused on making hosting as popular as traveling, and our results show that our approach is working."

The supply growth for the company was broad-based in the quarter, Chesky added.

"We once again saw double-digit supply growth across all regions with the highest growth in regions with the highest demand," he said. "Urban and non-urban supply increased at nearly the same rate. And we saw relatively similar supply growth among individual professional hosts with a majority of new listings exclusive to Airbnb."

The company said it added 1 million active listings so far this year to bring the total to more than 7 million, a number that dwarfs the room counts of global hotel companies. According to Airbnb's quarterly shareholder's letter, the strongest growth rates were seen internationally, particularly across Latin America and the Asia Pacific region.

The most publicized headwind the company faced in the third quarter was the change in regulations in New York City that require short-term rental hosts to register with the city to offer stays shorter than 30 days and be physically present during the stay.

Chesky called the New York rules an exception at a time when the company has seen a wave of regulatory wins and stressed the new requirements were misguided.

"I thought when we started Airbnb that we could develop model legislation in New York, that if we could make it in New York, we could make it anywhere if other cities adopted the legislation that New York adopted," he said. "It turns out, that's actually not the case."

While hotel industry analysts said the overall impact on hotel performance will only be incremental, Chesky said the move was anti-consumer and makes travel to New York considerably more expensive.

"I think it's going to turn into a cautionary tale because what we're already seeing is hotel prices in New York are going up 8% year over year," he said. "We are seeing more bookings in Jersey City and the perimeters around New York City, and I do anticipate more and more activity will probably go underground, which is probably not the intention of the people who passed the law."

Chesky also noted the issues in New York are overblown as headwinds for Airbnb's future growth.

"While you read headlines about a few cities, they actually represent a small percentage of the market concentration we have," he said.

During the call, Chesky said his company has seen benefits in drawing a line between the use cases of hotels and Airbnb stays, and that will remain a focus of marketing efforts going forward.

He said he still believes his company, despite its position as one of the biggest global players in the travel space, still has significant white space for growth.

"I think our core business could be significantly larger than it is today, even if we didn't do anything new," he said. "And the reason I believe this is the following: I believe that almost every single person who stays in the hotel could stay in Airbnb, if, No. 1, they knew about all the benefits of Airbnb, and No. 2, we made sure that our service was sufficiently reliable to be an alternative."

Airbnb recorded $3.4 billion in revenue during the third quarter, an 18% increase from the same quarter in 2022. Similarly, net income was $4.4 billion, up from $1.2 billion in the third quarter of 2022. The increase in income was largely attributed to a one-time tax benefit.

The company recorded adjusted earnings before interest, taxes, depreciation and amortization of $1.8 billion, a 26% year over year increase.

Airbnb officials also pointed to the "modest" 3% increase in average daily rate as a positive for the company, noting its long-term positioning as a more affordable alternative to hotels and the fact that much of the company's revenue is driven more through supply growth.

As of late Wednesday, Airbnb stock was trading at $119.47, up 40.7% year to date, while the Nasdaq Composite was up 25.8%.