18-05-2025
Airbnb now wants to sell you haircuts, museum visits and massages
Airbnb, the start-up that began as a platform offering cash-strapped travellers cheap sleeping arrangements in private homes, is now trying to expand into a massive new market: selling services and experiences like cooking classes, horse riding and museum trips. — Photo: Jens Kalaene/dpa
LOS ANGELES: Airbnb is expanding its business beyond accommodation to include experiences like museum visits, horse-riding and cooking classes, as well as services from people like masseurs, hair stylists and professional chefs.
"Hotels do have one thing that we don't have and those are services," Airbnb chief executive Brian Chesky said.
The offering aimed at closing this gap will initially launch in 260 cities with 10 categories, including services from fitness trainers and photographers. Over time, the range of services is expected to expand.
An app for more than just travel
This could mark a radical shift for an app typically used only once or a few times a year. Chesky and co-founder Nate Blecharczyk emphasized that the services and experiences are not tied to travel.
Their vision is that people could use the app whenever they want to book a photographer, a massage or haircut.
Could Airbnb eventually become a platform for booking local tradespeople? Blecharczyk pointed out that Airbnb hosts already require services from cleaners or plumbers.
Industry analyst Carolina Milanesi believes the move could change how the stock market views Airbnb. While the company has so far been evaluated using traditional travel industry metrics, such as the number of overnight stays, the stock market might now see it more as a tech platform.
At the same time, Airbnb is entering areas where specialised apps have already carved out niches. This will also make it harder to ensure consistent quality across offerings, and there will be more regulations to comply with.
Airbnb has faced criticism in various cities, with accusations that the service contributes to housing shortages by renting out more apartments in prime locations to tourists at high prices.
But Blecharczyk argued that the expansion into the services business would not be affected by this debate.
Bigger business than accommodation?
The first 10 service categories were selected based on user surveys. Providers of services and experiences must apply, and Airbnb selects them based on factors such as experience and reviews in their field, Blecharczyk said.
Blecharczyk is convinced that even during travel, services could potentially become a bigger business than accommodation. He explained that typically, for every US$1 (RM4.30) spent on accommodation, an additional US$3 (RM12.89) is spent on food, shopping, and excursions.
Airbnb might even be surprised by how large this business could become.
Airbnb says it will charge providers a fee of 20% for experiences and 15% for services. This revenue is used to cover costs such as payment transaction fees, customer service and insurance. Service and experience providers are not exclusively tied to the platform.
Chesky said the idea behind the experiences is to explore a city with the people who know it best. Unwanted interactions can be reported with the push of a button, as is already the case with communication between accommodation providers and their customers. Airbnb also uses machine learning to detect problems.
Airbnb Originals is set to be the space where users can find experiences hosted "by the world's most interesting people," Chesky said.
The Airbnb app has been redesigned to accommodate the new offerings beyond accommodation. For example, after booking a stay, the app will suggest nearby services and experiences. – dpa
