Airbnb banks on Tour de France deal to boost French market, eyes luxury experiences
PARIS, May 22 (Reuters) - Airbnb (ABNB.O), opens new tab said on Thursday a new partnership with the Tour de France will boost its rental business across rural France, as it seeks to build on the success of last year's Paris Olympics at a time of lower demand in the U.S.
The vacation rental company this month forecast softening demand in its top market as an erratic U.S. trade policy hurts consumer sentiment.
Number two market France, however, where locals account for about 70% of bookings, is seeing "very healthy" growth, maybe even faster than the U.S., co-founder and CEO Brian Chesky said in an interview.
The three-year contract with the world's most prestigious cycling race will see Airbnb promote rentals along the 3,339 kilometre route, as well as related experiences such as rides with former cyclists, as part of a global expansion strategy.
The partnership comes after the platform recorded 700,000 bookings during the four-week period of the Olympic Games, exceeding expectations.
It has maintained the roughly 120,000 listings reached in the French capital last year but says it can do more in less populated areas across the country, including many of the stops along the Tour de France.
The push comes even as cities such as Biarritz in France's southwest are restricting listings in response to soaring house prices.
"When Airbnbs are restricted somewhere, it does have an impact on the business. Obviously, it doesn't grow as fast. And then the other outcome...is that prices typically go up because a lot of people try to stay in a few homes or a few hotels," Chesky said.
In neighbouring Spain, Airbnb is appealing against a government order to withdraw more than 65,000 listings for holiday rentals that were alleged to have violated rules, part of a general crackdown on a business blamed for contributing to the country's housing crisis.
Airbnb has said it believes the ministry does not have the authority to make rulings over short-term rentals.
More brand partnerships could follow the deal with the Tour de France, especially for luxury experiences, said Chesky.
"Wealthy people like to spend money on experiences more than even things," he said.
For now, the company is still building up its new services, receiving many thousands of applications a week from people who want to sell a service on the platform.
Chesky, who has booked a chef at his Paris Airbnb, is among those testing the new offer but says it will take time to build up.
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In 2007, he and Fredrik made an acclaimed series about Filip's sister Linda, who has a learning disability: I en annan del av Köping (In another part of Köping), which ran for four seasons. 'She was living in a home with three male friends, also learning disabled, and when you hung out with them, they were so funny, it was almost like Seinfeld,' Filip tells me. 'The first episode opened with her saying, 'Uh-oh, I've been unfaithful again...' and that set the tone for the series. It was not what people would expect.' The show was so popular that, for a while, Linda became a national celebrity. 'At one point, she was voted 'Woman of the Year' in Sweden. Ahead of the queen! 'For some reason, I tend to explore my family and my hometown in our work – it must be a kind of therapy, or a way of dealing with weirdness,' he says. 'But I have said to Fred, 'By the way, whenever you want to do something about your family, I would be open to that...'' 'They're not charismatic enough!' replies Fredrik. 'That's the harsh truth. They're so low-key.' 'But there is a sort of inverted charisma vibe to your parents,' says Filip, kindly. 'You'd have to dig really, really deep,' concedes Fredrik. When The Last Journey came out in Scandinavia, the scale of its success took both men by surprise. 'It had more admissions than Dune: Part Two, which had a huge marketing budget,' points out Fredrik. 'God, we're so boastful. There have been several successful documentaries in Sweden in recent years: one about the ex-prime minister Olof Palme; one about Ingrid Bergman; one about the footballer Zlatan Ibrahimović. And one is about a teacher from a small town: my dad. He beat them all.'
