Short-term rental platform Airbnb is planning a shift in its business model towards long-term home and car rentals, according to its chief executive, Brian Chesky, in an interview with the British newspaper Financial Times.
Chesky notes that starting next year, the online vacation rental company would look "beyond its core business," including an expansion of services and experiences.
Furthermore, he hints at more changes, planned for next November, which would mark "the biggest Airbnb update ever." "Travel is our sweet spot," he states in the interview. "Eventually, the big frontier for Airbnb is to go beyond travel... there's an eventual opportunity for Airbnb to become a big part of your everyday life. Not just once or twice a year," he tells the aforementioned publication.
He also indicated that offering rentals of up to one year represents “a great opportunity” and that, given that only 18% of gross nightly bookings in the second quarter of 2023 came from stays longer than 30 days, more can be done in this area. Extended stays of more than three months are even rarer, he said.
Chesky also points out that in a post-pandemic world, there's an untapped market for one-, two-, or three-month stays, as people can work from their laptops and travel throughout the summer. Furthermore, in addition to expanding into long-term rentals, Airbnb is also looking to become a provider of "things to do on your trip," the executive notes.
In the interview, he emphasizes that there is a long list of ideas being considered at the company, including car rentals or 'pop-up' restaurants (emergency catering services).
“The second most important asset in a person’s life, after their home, is their car,” Chesky points out, suggesting that the company’s next move would be toward this model. The CEO anticipates this strategy at a time when Airbnb’s business model is under pressure from lawmakers worldwide due to the dwindling housing stock in major cities, the British newspaper highlights.
As an example, he cites the regulation in New York, where Airbnb has one of its largest markets and where a rule has recently been introduced that limits the freedom residents have to rent through the platform, eliminating about three-quarters of its listings in the city.
Chesky says he doesn't see this situation in New York as a "precedent" for the company. "Most people in New York City and beyond feel that it's absolutely a win-win situation," he said. The company's global head of policy and communications, Jay Carney, predicted that the policy implemented in New York wouldn't solve the housing crisis, and that hotel prices in the city would skyrocket, while "budget-conscious tourists won't be able to come to New York.".
