Like a popstar in their flop era, Airbnb is soft launching a new persona.
What happened: After projecting its slowest pace of growth since 2020, Airbnb is looking to expand its products and services to stoke demand and shift further into long-term stays.
- The number of bookings on the app badly missed analyst projections, with the company predicting even slower U.S. demand on the horizon.
- From Booking Holdings reporting softer demand to Air Canada seeing its profits cut in half year over year last quarter, the broader travel industry is feeling the pinch.
Why it matters: Would-be travellers are paring back, particularly on domestic voyages, not because of a lack of options, but because their credit cards need a breather. Desperation is driving innovation for Airbnb, which is hoping to win back demand with new features:
- A new co-hosting option that connects homeowners with property managers.
- A revamped version of its Experiences biz, offering guests tours and workshops.
- Deluxe guest services, potentially including private chefs, spas, and fridge stocking.
Bottom line: The post-COVID trend of “revenge travel” has fallen by the wayside. And while flashy new features and leaning into luxury experiences might help Airbnb attract a less cost-conscious clientele, it won’t make wider economic anxieties magically disappear.—QH