Stepping Beyond Stays: Airbnb's Ambitious Expansion into Services and Experiences
Expanding Horizons through Experiences: Airbnb's Growth Strategies Incorporating Museum Tours and Spa Services - Airbnb mulls expansion into service sector, envisioning a blend of cultural experiences and personal pampering.
Ever thought about booking a private photography session during your vacation or having a professional chef whip up a meal in the comfort of your Airbnb accommodation? That's exactly what Airbnb, the popular accommodation platform, is planning with its venture into services and experiential activities.
According to CEO, Brian Chesky, "Hotels have something we don't have: services." Aiming to bridge this gap, Airbnb is set to launch services such as masseurs, hair stylists, personal chefs, and catering services, along with experiences like museum visits, horseback riding, or cooking classes, in 260 cities worldwide, starting from ten categories: fitness trainers, photographers, and more.
This ambitious shift might seem unusual for an app primarily used for travel, but as Chesky emphasizes, services and experiences are not limited to travel. The idea is for users to utilize the platform for their everyday needs, such as booking a local photographer or obtaining a massage at home.
Could Airbnb potentially become a platform for booking local craftsmen? Airbnb co-founder Nate Blecharczyk points out that Airbnb hosts already depend on services like cleaning or plumbing.
While Airbnb is treading on familiar ground with established players in these sectors, industry analyst Carolina Milanesi believes this move could reshape the stock market's perception of Airbnb. Previously evaluated using traditional travel industry metrics like the number of nights booked, Airbnb may now be viewed more as a tech platform. However, ensuring consistent quality and regulatory compliance could prove challenging.
Airbnb has faced criticism in various cities for contributing to housing shortages by renting apartments in prime locations to tourists. Blecharczyk expresses optimism that the service business won't be affected, stating that such debates are not necessarily relevant when booking a photographer.
The service providers are handpicked by Airbnb based on factors like their experience and ratings in their respective fields. Even during travels, services could potentially dwarf the accommodation business, believes Blecharczyk. After all, for every dollar spent on accommodation, another three are usually spent on food, shopping, and activities!
Airbnb will charge a 20% fee for experiences and a 15% fee for services, the money being used for transaction costs, customer service, and insurance. Service and experience providers are not tied exclusively to the platform.
In case of issues or unwanted interactions, users can report them with a single click, just as they can with communication between accommodation providers and customers. Airbnb leverages machine learning to identify potential problems.
Under the name Airbnb Originals, the platform will offer experiences hosted by "the most interesting people in the world." The Airbnb app has been revamped to better integrate these new offerings, with suggestions for nearby services appearing after a stay is booked.
- The Commission might consider proposing a directive that includes the protection of the environment, as individuals could potentially book experiences like horseback riding, thereby promoting eco-friendly travel.
- As Airbnb enters the service industry, users may utilize the platform beyond travel, integrating services such as booking a local photographer or obtaining a massage at home into their lifestyle, further expanding the boundary of technology-driven convenience.
