Airbnb, the world’s largest accommodation-sharing platform, is seeking new growth engines by introducing hotel-level high-end services. The strategy is to target the premium accommodation market in earnest, such as strengthening additional services to overcome the limit of a “no-service accommodation platform.”
Airbnb announced on Thursday that it has officially launched its “Airbnb Service” function in 260 cities around the world. Featuring additional hotel-level services, users can choose from 10 categories of premium paid services, including private meals cooked by chefs, luxury spa vouchers, and personal training (PT) experiences.
This is interpreted as a strategy put forward by Airbnb, which has been criticized for its lack of additional services, to strengthen its competitiveness. In the past, there have been cases in which some hosts (accommodation providers) have provided similar services individually, but because this was done outside the platform, there were several limitations, including inconvenience of payment and reliability problems. Through this integrated service, Airbnb plans to catch two rabbits at the same time: reliable premium services for users and additional profits for the company.
This strategy is similar to the ‘annual fee model’ widely used in the airline and hotel industries. The airline industry is diversifying its profits through a variety of paid options such as baggage charges, in-flight meals, and seat upgrades, and hotels have also expanded their sales to non-stay services such as spas, meals, and activities. Airbnb also plans to go beyond simple accommodation brokerage to monetize demand throughout the stay.
Airbnb CEO Brian Chesky said at the “Airbnb Summer Release” event in Los Angeles (LA), “Many people booked hotels to enjoy services and Airbnb to enjoy spacious and free spaces. Now we will provide both to provide a more special accommodation experience.”
Airbnb Experiences, a hands-on program, will also be completely reorganized. The service, first introduced in 2016, has been providing local experience programs planned and operated by local residents, but has been stagnant since April 2023 when new host registrations have been suspended.
Airbnb plans to introduce an experience product that allows fans to interact directly with artists and celebrities under the slogan “Special Experiences Provided by the Most Interesting People in the World.” In fact, a program that allows fans to meet at special places in collaboration with singer Sabrina Carpenter and American football star Patrick Mahomes is also set to be released.
Existing hands-on programs will also continue to operate. Airbnb offers local-based hands-on content in 650 cities around the world. For example, it runs a behind-the-scenes tour with Notre Dame Cathedral’s restoration architect in Paris, France, and a horse-riding tour of the Holy Land with Andean culture experts in Peru. These experiences have received positive reviews for providing travelers with an opportunity to deeply understand and experience the culture of the region.
Airbnb apps have also been updated extensively in line with the service reorganization. It is characterized by the enhanced social media (SNS) function in the app, such as communicating with guests who participated in the experience and allowing them to easily share their travel destinations with friends. “Airbnbs 17 years ago changed the way they travel,” CEO Chesky said. “Now, it will be reborn as a platform that provides life experiences beyond accommodation.”
SALLY LEE
US ASIA JOURNAL
