Airbnb Overhauls App to Showcase Services Business
In a bid to expand its offerings beyond home stays, Airbnb has launched a redesigned app that allows travellers to book services such as catering and personal training at their home rentals. The new app, which marks a significant shift in the company’s business strategy, aims to position Airbnb as a one-stop-shop for travellers seeking unique experiences.
According to Dave Stephenson, Airbnb’s business chief, the company has previously tried to push beyond home rentals but dialled back those efforts in 2020 to focus on its core business amid the Covid pandemic. However, with a strong foundation now in place, Airbnb is confident that it can build and expand its offerings to drive future revenue growth. "We now feel like we have such a strong foundation that we are capable of building and expanding," Stephenson told CNBC.
The app’s new services tab offers 10 categories that users can select and book during their rental, including spa treatments, catered or prepared meals, and personal training sessions. These services will debut in 260 cities worldwide, with Airbnb hoping to put its offerings on par with those typically found at hotels and resorts. To ensure quality, Airbnb has bolstered its vetting team, which includes legal professionals, to assess certifications and licensing requirements that vary from city to city. According to the company, services vendors have an average of 10 years of experience.
The app update also includes a homepage tab to emphasize Airbnb’s experiences business, which was first launched in 2016. The new tab divides experiences into 19 categories, including live performances, landmark tours, architecture tours, and workouts, which are available in 650 cities. The experience tab will include activities and tours designed by Airbnb, called originals, such as a tour of Notre Dame with a restoration architect in Paris.
In addition to its services and experiences offerings, Airbnb is also updating its social features to allow users to see other guests attending experiences. The new messages section will enable photo and video sharing and come with updated privacy features for interacting with co-travelers later this year. The company is also partnering to offer experiences and services at the 2026 Winter Olympics in Milan.
The overhauled app marks a significant step in Airbnb’s bid to expand its business beyond home stays. According to CEO Brian Chesky, the company’s previous app had limitations, allowing users to book only homes. "Until now, our app has really done one thing, which is it lets you book a home," Chesky said on Airbnb’s May 1 earnings call. "We rebuilt the app from the ground up on a new technology stack. And now we can innovate faster and offer much more than homes." The new app is set to be a key driver of Airbnb’s future revenue growth, with the company previously announcing plans to invest $200 million to $250 million in its new business.
The redesign comes at a time when Airbnb is seeking to address concerns about its growth prospects. The company’s shares fell earlier this month after it issued disappointing revenue guidance in its first-quarter earnings report, citing "softness" in travel from Canada to the US toward the end of the quarter amid macroeconomic uncertainties. However, with its new app and expanded offerings, Airbnb is confident that it can attract new users and increase revenue.
This article is based on reporting by CNBC, a leading provider of business news and analysis. For more information, please visit CNBC.
