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Airbnb has big plans to diversify its offerings beyond short-term rentals, including new billion-dollar businesses. AirDNA Chief Economist Jamie Lane joined Skift founder and CEO Rafat Ali to discuss what’s next in this special episode of the Skift Travel Podcast.
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Key Points
Airbnb’s Focus on Experiences: Airbnb is launching a major push into curated experiences, such as unique events like the “gladiator experience” at the Coliseum. That would seek to tap into guest interests beyond stays, leveraging its platform to offer activities for travelers and locals, although scaling this segment has been challenging in the past.
Shift Toward Mid-Term Rentals: Airbnb is capitalizing on the rising demand for mid-term rentals (30+ days), positioning itself to compete with traditional long-term rental platforms like Zillow. This diversification helps mitigate regulatory risks and aligns with changing lifestyles, where people seek flexibility in living arrangements.
Arranging Meetups: Airbnb could expand its Experiences platform to facilitate meetups, creating opportunities for locals and travelers to socialize in various cities worldwide. This model could involve bars and restaurants hosting these gatherings, potentially monetized through sponsorships or partnerships with local establishments.
Expanding into Event Ticketing and Local Activities: Airbnb has the potential to integrate features for booking concerts, tours, and local events directly within its platform, akin to a more consumer-trusted alternative to companies like Ticketmaster or Live Nation. This approach would align travel plans with cultural or recreational activities in the destination city.
Episode Summary
The podcast discussion highlights Airbnb’s strategy to diversify beyond its core accommodations business as its growth slows. CEO Brian Chesky envisions launching one or two billion-dollar ventures annually, with the first relaunch of Airbnb Experiences set for May 2025. The conversation explores how Airbnb could expand into adjacent services for both hosts and guests.
Key areas include monetizing services like co-hosting networks, in-property services (e.g., chefs, massages, grocery delivery), and creating unique experiences, such as exclusive tours. Lane emphasizes the potential for Airbnb to scale by addressing broader travel needs and possibly venturing into local services for non-travelers. The company is also inspired by Amazon’s strategy, particularly in loyalty programs, aiming to create a travel version of Amazon Prime that enhances convenience and adds value without relying on points-based systems.
The discussion suggests Airbnb must balance innovation with maintaining profitability, leveraging its unique position as a hybrid of a platform and brand to dominate both the short-term rental market and new verticals. Experiences, services, and loyalty initiatives are seen as critical to this evolution.
