Airbnb Sets Sights on Expansion: Delving into Museum Experiences and Relaxation Services
Let's Dive into Airbnb's Ambitious Expansion!
Boldly stepping out of its accommodation-focused roots, Airbnb is entering the service and experiential realm. With an array of offerings, users can now book everything from masseurs and hair stylists to professional chefs and catering services, all from the comfort of an app. The experiences span from museum visits to extreme activities like horseback riding or cooking classes.
According to Airbnb CEO Brian Chesky, "Hotels have something we don't have: services." To bridge this gap, the company is launching its service offering in 260 cities across ten diverse categories, such as fitness trainers and photographers. The vision? Provide a platform for users to access these services whenever they need a professional at home, not just during travel.
Moving Beyond Travel
This shift towards services might seem radical for an app usually used sporadically. But Chesky and co-founder Nate Blecharczyk insist that services and experiences aren't limited to travel. They envision users utilizing these offerings for a photographer, massage, or haircut whenever they want, regardless of whether they're jet-setting or just lounging at home.
Could Airbnb eventually become a platform for booking local craftsmen? Blecharczyk hints that the demand for services like cleaning and plumbing among Airbnb hosts could pave the way for this possibility.
Competing in Established Markets
Industry analyst Carolina Milanesi believes that this move could reshape Airbnb's stock market perception. While the company has been evaluated based on traditional travel industry metrics like the number of nights booked, it could now be seen more like a tech platform.
However, Airbnb must navigate markets already occupied by specialized apps and ensure consistent quality while adhering to regulations. The company faces criticisms in several cities for contributing to housing shortages by renting out apartments to tourists in prime locations. Nevertheless, Blecharczyk is optimistic, stating that such debates are not relevant when booking a photographer.
A Lucrative New Business?
The first ten service categories were chosen based on user surveys, with service and experience providers applying for selection based on factors like expertise and customer reviews. Even while traveling, services could potentially outgrow accommodations, given that typically, for every dollar spent on accommodation, an additional three dollars are spent on food, shopping, and activities.
Airbnb charges a 20% fee for experiences and 15% for services, which covers transaction costs, customer service, and insurance. Service and experience providers are not exclusively tied to the platform.
Airbnb: Your Social Network and Lifestyle App
The idea behind experiences is to explore cities with the locals who know them best. Unwanted interactions can be reported with a single click, as is already possible with host-guest communication. Airbnb also uses machine learning to detect issues.
On the horizon, Airbnb Originals will offer experiences with the "most interesting people in the world." The redesigned app now integrates booking for stays, services, and experiences, making it easier for hosts and guests to manage and book all types of offerings in one place.
In essence, Airbnb is on a mission to transform into a lifestyle app, moving beyond travel to integrate into our daily lives. The long-term strategy includes expanding services and experiences to make Airbnb relevant to users even when they're not traveling, thereby increasing app usage frequency.
[1] Airbnb Services Launch: Everything You Need to Know: https://www.forbes.com/sites/williamrantoul/2021/09/28/airbnb-services-launch-everything-you-need-to-know/?sh=36ad2b5a7a52[2] Airbnb is Invading Your Daily Life: https://www.wired.com/story/airbnb-lifestyle-app-spanish-influencer/[3] The Airbnb App Adds Services: https://www.verge.com/2021/9/28/22703352/airbnb-app-services-ads-stays-new-features[4] Airbnb Experiences: https://www.airbnb.com/ experiences[5] Airbnb's 2025 Strategy Looks Beyond Accommodation: https://www.nytimes.com/2021/09/30/business/airbnb-strategy.html
- Airbnb's expansion into services and experiences, such as booking local craftsmen, photographers, and fitness trainers, marks a significant shift towards becoming a lifestyle app that integrates into daily life, not just travel.
- One of the long-term strategies for Airbnb is to increase app usage frequency by providing a platform for users to access various services, like a professional massage or a haircut, regardless of whether they're traveling or not, thereby aiming to be more than just an accommodation booking app.
