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US: Airbnb CEO Brian Chesky has hinted that the home-sharing firm will branch out into new products and services, such as co-hosting, and relaunch its Experiences program in 2025, as part of the company’s second quarter earnings call.
Saying that the company will need to do “multiple new things”, Chesky confirmed that Airbnb will introduce co-hosting this autumn as a way of unlocking untapped inventory and connecting homeowners with no time to manage their listings with those who do.
The company positioned the upcoming offerings as a way for Airbnb to grow its revenue by becoming known for doing more than just one thing — short-term vacation rentals.
Airbnb also plans to reignite its ‘Experiences’ program next year, which includes immersive experiences such as tours and activities with hosts and / or locals. The company opted to put a pause on new Experiences submissions last spring so that it could re-divert its focus towards its core platform offerings, while it has also been removing individual tours and Experiences listings in recent months.
In the meantime, in May’s Summer Release, Airbnb unveiled Icons, a new category of experiences hosted by stars from across music, sport, film and more, as well as new group trip planning features. The company initially introduced its first 11 Icons from the fields of music, film, television, art and sport, all of whom host “extraordinary” experiences in unique locations, letting guests “step into worlds you’ve only ever dreamed of”.
Chesky admitted that the relaunched Experiences will have to be “more affordable” and unique if Airbnb is to improve its product offering.
It comes just a week after Airbnb chief business officer Dave Stephenson told Bloomberg that the company is aiming to expand beyond its core offering and diversify into “services that will make it better for guests to stay in Airbnbs”. It is reportedly considering adding luxury-style services such as personal chefs, massages, mid-stay cleaning, easier check-ins, spa services and refrigerator stocking in order to woo travellers back to short-term rentals from hotels.
Stephenson also suggested that a formal announcement on the expansion could come “early next year”.
For Q2, nights and experiences booked rose nine per cent year-over-year, which the company attributed to a “growing reliance on smartphones for travel planning and booking”.
In a disappointing quarter for the three months up to 30 June, punctuated by slowing demand from US travellers and shortened booking lead times, Airbnb reported a 15 per cent drop in Q2 profit compared to a year earlier, from a net income of $650 million in Q2 2023 to $555 million this year.
That decrease in profit was despite an 11 per cent year-over-year increase in Q2 revenue, rising from $2.5 billion this time a year ago to $2.75 billion.
Also in the second quarter, Airbnb said that it had surpassed eight million active listings, driven by “continued growth across all regions and market types”. It added that it had removed more than 200,000 listings that had failed to meet its guests’ expectations as it bids to deliver more consistent, high-quality stays.
The company saw shares in the company drop around 14 per cent in after-market trading as a result of the weakened profit announcement.
Looking ahead, Airbnb is predicting a moderate increase in nights booked for Q3 and a continuation in shorter booking lead times around the world – potentially a sign of spending caution and global market uncertainty.
