As Airbnb faces challenges over the effect of short-term rentals on local residential housing markets and overtourism in destinations worldwide, the booking disruptor has signalled it is looking at diversification strategies to ensure its continued relevance.
Bookings up this summer
Recent corporate results show that in 2024, Airbnb saw an 8% rise in bookings year-on-year for the summer quarter, as well as an uptick in first time bookers and younger users, and a 5% increase in mobile app bookings – a testament perhaps to the changes the accommodation platform has made to the app, to personalise searches and enhance usability with more local payment options.
Responding to the advent of sites such as bnbfinder, that only allow professional hosts, Airbnb has also stripped out more than 300,000 so-called “low quality” properties from its listings and has said it is working to reduce the number of cancellations by hosts, which it has described as “a significant pain point” for guests.
“Beyond accommodation”
But the company’s growth strategy does not end there. After a foray into the experience marketplace starting in 2016, executives have signalled further expansion “beyond accommodation” to come.
Though Airbnb did not immediately see huge success with moves into experiential offers, and indeed, imposed a moratorium on new “experience hosts” in 2023, trends in travel and tourism do point to a growing appetite among consumers for “experiences”. Uber, for example, has recently ventured into experiences, with $200 safaris in South Africa, hot air balloon rides in Türkiye, and champagne tours in France.
More recently Airbnb has re-entered the arena with immersive experiences at Rome’s Colosseum, in which, according to a press release: “Warriors will have the opportunity to step inside the historic arena once traversed by victorious fighters, suit up in historically accurate armour, and put their skills to the test to determine their fate in battle.”
Experiences for locals as well as tourists
While Italians have derided the concept as an attempt to turn their ancient monuments into a theme park, the concept of experiential bookings does not appear to be going away any time soon, prompting Skift to predict that Airbnb might market experiences such as events, gigs or museum visits to locals as well as tourists, or even branch into home entertainment options, such as gourmet dining or wellness treatments.
“While our timing and investment level vary by market, our strategy is consistent: make Airbnb local and relevant,” the company has promised.
