Airbnb (ABNB) could drive higher user engagement and transactional frequency with its redesigned app, which better curates non-travel offerings, Oppenheimer said in a note Wednesday.

On Tuesday, the company announced a fully redesigned app that unifies home, services, and experiences under one interface. Airbnb also plans to invest between $200 million and $250 million this year to support new services and experiences that management believes could each become over $1 billion revenue opportunities.

Oppenheimer sees offerings like chefs or surf lessons being booked during non-travel periods, helping to increase user frequency. The firm views the new app as better suited for merchandising and cross-selling, particularly given Airbnb's high direct traffic mix.

The firm expects investor focus to center on how quickly services and experiences scale into meaningful revenue, especially given their less commoditized and more platform-unique nature.

Unlike the previous "Trips" offering that failed to generate meaningful revenue, the current experiences rollout includes more affordable options, a vetted provider base, and social features that allow users to share photos and chat before, during, and after the experience.

Oppenheimer also noted that Airbnb has not yet launched host services marketplaces offering amenities like housekeeping or laundry, which could arrive later this year, according to the note.

The firm has a perform rating on the stock.

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