MW Airbnb is betting on 'the world's most interesting people' to cure travel malaise, hotel competition

By Bill Peters

'Hotels do have one thing that we don't have, and those are services,' CEO says

Amid signs of slowing travel demand, Airbnb Inc. on Tuesday unveiled new efforts to recast itself as more than a vacation-rental platform - announcing an app overhaul and plans to offer new services like in-home meals from chefs, tours from locals, and hangouts with celebrities like Sabrina Carpenter and Patrick Mahomes.

The company announced the expansion as it tries to retain its charm while its competition intensifies, including from hotel chains and platforms that bundle travel services.

"Hotels do have one thing that we don't have, and those are services," Airbnb Chief Executive Brian Chesky said during a presentation in Los Angeles.

Meanwhile, less wealthy consumers are holding off on their vacation plans, as fluctuations in the U.S.'s efforts to tilt global trade more in its favor cause greater unpredictability in the economy and stir deeper consumer anxiety.

The initial rollout of services includes massages, spa treatments, yoga, hair and makeup appointments, and catering. The tours and other events - which Chesky pitched as experiences with "the world's most interesting people - include lucha libre wrestling training, a walk-through of the Notre-Dame de Paris cathedral's restoration, a look at pop star Carpenter's Short n' Sweet set, a Sunday barbeque with NFL quarterback Mahomes, and an anime-themed event with rapper Megan Thee Stallion, who attended the Airbnb event in Los Angeles.

Airbnb said it would launch those services in hundreds of cities globally. The company said "many" of them have a starting price of below $50. Chesky, during the presentation, said people didn't need to stay in an Airbnb to book those services.

The company on Tuesday also announced a new app format, with an overhauled homepage and more ways to manage trip scheduling and facilitate recruitment of new hosts and others offering tours and add-on services.

"If you are an expert in your city and you have something to share, we'd love for you to apply, because you can get paid to do what you love," Chesky said.

The services and events expand off the launch of more pop-culture-themed rentals last year, as well as the launch nearly a decade ago of a segment intended to offer more authentic local experiences. Airbnb said the services and events are vetted for quality beforehand, noting that the services hosts have 10 years of experience, on average.

Shares of Airbnb were up 2.9% on Tuesday. However, over the past 12 months, the stock has fallen 5.9%.

Some of Airbnb's similar services-related efforts in previous years ran up against the pandemic, and were at times underadvertised or hard to find on the app. Earlier in the year, Airbnb expressed its ambitions to become more of a one-stop shop for travel. But this month, it forecast slower growth in nights booked amid "broader economic uncertainties" in the U.S.

Sally French, a writer who focuses on travel at NerdWallet, said travel is generally one of the first discretionary expenses people reconsider when the economy gets wobbly. But she noted consumers might opt for cheaper or closer-to-home travel options, rather than cancelling plans outright.

"What we're seeing increasingly is a shift in how people travel, rather than if they travel," she said in an email ahead of Tuesday's announcement.

Still, French said any broader expansion of Airbnb's services would give it alternative ways to make money, amid subdued travel demand as well as pushback and restrictions from some cities that have argued that the platform takes up available housing.

French also noted that big hotel chains like Marriott International Inc. $(MAR)$ and Hilton Worldwide Holdings Inc. $(HLT)$, as well as smaller players, had broadened their vacation-rental offerings. She pointed to other issues as well.

"What started as a quirky, affordable, community-driven alternative to hotels has, in many cities, become more expensive than hotels, with added cleaning fees, long checkout lists and inconsistent quality," she said.

But "that's not to say it's universally disliked," she added. "Many people still love the access to unique homes, local neighborhoods and multibedroom spaces for families or groups."

-Bill Peters

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May 13, 2025 17:06 ET (21:06 GMT)

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