Source : THE AGE NEWS
Los Angeles: Airbnb is branching out beyond short-term rentals and pitching itself as a lifestyle brand, in a major expansion of services aimed at stealing more travel dollars away from hotels and travel websites.
At a global launch event on Wednesday morning (Australian time), company co-founder and chief executive Brian Chesky launched Airbnb Experiences, Airbnb Services and a revamped app, saying that it was time to rebuild the company “from the ground up”.
Airbnb co-founder and chief executive Brian Chesky hopes to make the listing platform the ‘Amazon of travel’.Credit: AFP
“Seventeen years ago, we changed the way people travel, and with the launch of Experiences and Services, we’re changing travel again,” Chesky said. “Now you can Airbnb more than Airbnb.”
The transition from a short-stay rentals provider to a full-service travel platform comes as Airbnb, valued at $US84.7 billion ($130.8 billion), looks to turn up the heat on travel sites such as Booking.com, Kayak and Expedia, and hotels that offer a host of services to travellers.
Airbnb Experiences is labelled as a way to travel more authentically, guided by locals and specialists in their field, such as a pasta-making masterclass in Rome or visiting Notre Dame with one of the architects who helped restore it.
Airbnb is branching out beyond rentals and pitching itself as a lifestyle brand, focused on experiences.
Meanwhile, Airbnb Services allows guests to book professional services, starting with chefs, caterers, stylists, personal trainers and beauticians who can provide the service at the accommodation.
At the launch event, during which Chesky demonstrated new listings on the redesigned app displayed on a floor-to-ceiling screen, the co-founder said he didn’t agree with claims that Airbnb had monetised people’s biggest life assets: their homes.
“I always thought, we haven’t monetised people’s biggest asset yet because the biggest asset is their time,” said Chesky.
“There’s a lot of nervousness in the world right now with AI and what jobs won’t exist in the future. But it’s also possible that technology will create a lot more economic opportunity.”
Airbnb’s reinvention comes as its rental business has shown signs of slowing and continues to endure increased regulatory scrutiny in many parts of the world.
The company has effectively been banned or tightly restricted in tourist hotspots such as Barcelona, Paris and New York over concerns that short-term rentals are limiting housing supply.
In Australia, Victoria imposes a 7.5 per cent short-stay levy on property owners, which are likely passed onto holidaymakers, while the ACT has introduced a bill for a 5 per cent levy. Certain areas of NSW have a 180-day cap on Airbnb-style letting.
We’ve grown so quickly that I understand there’s sometimes unintended consequences.
Airbnb co-founder and CEO Brian Chesky
Airbnb also drew fire from critics last year for running a promotion in Italy that allowed select customers to dress up as gladiators and participate in mock fights at the Colosseum.
Chesky said on Wednesday he hoped the launch would come as a “reset” for better relationship with cities that have taken tougher stances against short-term rentals, such as New York, which recently introduced new legislation proposing to roll back some of the restrictions implemented a year and a half ago.
“I hope people see this as a bit of a reset and opportunity for a really amicable partnership,” he said in a media roundtable.
“We want to be wanted in cities, we want to be good to partner with. We’ve grown so quickly that I understand there’s sometimes unintended consequences. Cities are wrestling overtourism. They’re also wrestling with rising housing prices,” Chesky said.
Earlier this month, Airbnb flagged a weaker outlook for the second quarter on the back of uncertain economic conditions in the US hurting travel demand. The company is also exposed to the drop-off in foreign travellers booking trips to the US.
Airbnb flagged in February that it was ready to invest up to $US250 million in the new services to scale them up over time.
Chesky on Wednesday also unveiled Airbnb Originals, listings created exclusively for Airbnb. Some of these lean heavily on star power, such as a cosplay experience with rapper Megan Thee Stallion to become an “Otaku Hottie”, or a football-filled day with American quarterback Patrick Mahomes finishing with a barbecue meal.
Meanwhile, a ramen-making class with a Michelin Bib Gourmand chef in Tokyo and horse riding among Inca temples are among some examples of Airbnb Experiences. In Australia, guests can do a coffee crawl in North Melbourne, watch the art of cocktail-making up close at world-renowned Sydney bar Maybe Sammy, or work out on Bondi Beach with a navy instructor.
Airbnb Australia country manager Susan Wheeldon said Airbnb Experiences were “curated by expert locals” to offer a genuine experience to travellers in smaller groups.
Airbnb country manager for Australia and New Zealand Susan Wheeldon.Credit: Dion Georgopoulos / The Sydney Morning Herald
“They’re people who are known in their field, or the best in class of what they do, and are hyper passionate about it,” she said.
“If you want to get away, you want to go with your friends [or] a couple of families, but nobody wants to cook.”
Wheeldon said the addition of services and experiences would help microentrepreneurs who have been affected by shifts in travelling habits amid cost of living pressures.
“People are more likely to do a driving holiday, potentially. So then, if you’re a driver, maybe you’re picking up less work. [A driver] said that his Easter had been a lot quieter than what they’d expected,” she said.
The reporter travelled to Los Angeles as a guest of Airbnb.
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