How Airbnb wants to find its way out of the crisis

But is this just smoke and mirrors to appease shareholders, or is Airbnb truly gearing up for a major shift? CEO Brian Chesky’s disappointing figures have certainly sparked a flurry of activity.

After announcing a fall in profits of over 14 per cent due to a drop in demand, the share price plummeted by 16 per cent this week. CEO Chesky then went on the offensive during the subsequent investor call.

Tours, massages, transfers, co-hosting, boutique rooms

To navigate its current slump,  the company plans to offer «experiences», such as excursions, tours and activities close to where people are staying.  While the idea isn't new—it was launched previously before being suspended—it is now set for a revival.

In order to win back guests - and probably also entice them away from hotels - Airbnb also wants to offer «in-home experiences» and activate these on the app. These include options such as ordering a cook, a midweek clean or a massage in the rented flat, as well as assistance with travelling to or from the property.

«Co-hosting» is also on the agenda for this year: Airbnb aims to connect home owners who lack time to manage their listings with people who have the time but don’t have a property the platform.

Airbnb is also planning to expand its range of boutique hotel rooms via its own metasearch «Hotel Tonight». This is likely to be a reaction to the fact that protests against Airbnb in tourist hotspots are growing louder and louder - keyword: housing shortage. Where action is being taken against home-sharing services, the expanded offer on Hotel Tonight could ensure additional bookings.

Another measure taken by Airbnb to get out of the overtourism blame game is a new filter function that allows users to search for rentals in the countryside. These can be properties in sleepy villages and little-known towns.

AI plans are delayed

Whether Brian Chesky's latest promises will come to fruition remains uncertain. He had previously set high expectations when he announced a new app driven by artificial intelligence, slated for a May 2024 launch. However, Chesky has since conceded that transforming Airbnb into a fully AI-powered platform will take years.

Despite this setback, Chesky remains committed to his long-term vision: for Airbnb to evolve into a digital travel concierge that not only learns and adapts to each user but also goes beyond a basic chatbot. He envisions a system that understands users deeply enough to offer personalized travel suggestions tailored to their preferences.