Nearly ten years ago, Airbnb set forth a vision that extended beyond being a mere app for vacation home rentals. Under the dynamic leadership of CEO Brian Chesky, the company’s latest app redesign signals a significant stride toward transforming Airbnb into a comprehensive “end-to-end travel app.” This ambition has received renewed focus in light of changing market dynamics and shifting consumer behavior.
In previous attempts to broaden its scope, Airbnb introduced several innovative features. The company launched “Airbnb Experiences,” which allows users to book a diverse range of tours, classes, and activities via the app. Additionally, it ventured into creating a travel magazine, making hotel-like offerings, and packaging experience tours that bundled lodging, transportation, and culinary expenditures together. These initiatives were part of an effort to evolve Airbnb from merely booking accommodations to facilitating a holistic travel experience.
However, the onset of the COVID-19 pandemic, which coincided with Airbnb’s initial public offering, forced the company to retract some of its broader goals and refocus on its core rental business. This retreat was necessary to navigate the uncertainties that emerged during lockdowns and the subsequent decline in travel demand.
Nevertheless, Airbnb is now reigniting its aspirations to develop a full-service travel platform. A pivotal aspect of the app’s redesign is the introduction of a section called “Airbnb Services.” This feature allows users to seamlessly book services from various professionals, including chefs, masseuses, and personal trainers, to enhance their stay at an Airbnb. With these additions, the platform aims to become more competitive with established travel platforms like Expedia and Kayak, as well as traditional hotels that offer an array of amenities such as restaurants and spas.
Airbnb’s Chief Business Officer, Dave Stephenson, highlighted that one of the reasons travelers may shy away from Airbnb accommodations in the past was the absence of associated activities and services, which conventional hotels often provide. This acknowledgement led to the company’s renewed commitment to diversify its offerings and enhance the guest experience. Following years of discussions about moving beyond their core business of accommodation rentals, Stephenson expressed excitement about finally materializing these plans.
This announcement arrives amid a precarious period for the travel industry, as economic concerns threaten to curb consumer spending on travel-related experiences. Earlier this month, Airbnb released a robust first-quarter earnings report, yet still cautioned investors about potential slowdowns in booking growth for the current quarter. Furthermore, the company’s average daily rates (the revenue generated per booking) are projected to remain stagnant year-on-year. Amid ongoing legal challenges related to privacy concerns and tightening governmental regulations, Airbnb’s stock has seen fluctuations, recently falling over 10% compared to the previous year.
Beginning the following Tuesday, users could explore the new “Services” tab within the app, offering ten distinct categories of services, ranging from meal preparation to hairstyling and photography. For instance, travelers could coordinate a photoshoot in Paris or engage a personal chef for a barbecue in Austin, Texas. Service providers must undergo an application process, verifying their expertise and relevant licenses, before being listed on the platform. This feature also allows professionals to serve clients in their homes or non-Airbnb locations, thereby expanding usage for individuals who may not be traveling.
In tandem with the services launch, Airbnb is also innovating its Experiences section, introducing exclusive offerings under the banner “Airbnb Originals.” Stephenson indicated that dedicated teams are actively collaborating with locals to curate these unique experiences, such as guided tours of the Notre-Dame Cathedral or pastry-making classes. Unlike existing experiences that can be booked on platforms like TripAdvisor, these Originals will be exclusive to Airbnb, allowing guests to engage with fellow participants post-experience through integrated app features.
The existing “Trips” tab in the app will also receive a makeover, evolving into a more comprehensive travel planning tool. Post-booking, users will automatically receive tailored recommendations for nearby experiences and services, displayed alongside their accommodation details, check-in instructions, and other essential trip components.
In a climate of economic uncertainty, Stephenson noted that while slowdowns are challenging, they could also lead to more hosts seeking to list their properties and experiences on the platform as a means of generating additional income. Amid such financial anxiety, Airbnb might present itself as a more budget-friendly option, as discerning travelers increasingly seek value in their accommodation choices.