18 Nov 2016

Airbnb claims most significant development in its history – moving beyond accommodation

It’s big rhetoric time at Airbnb this week, with the home sharing giant claiming at its annual hoedown that it is going to “make travel magical again”.

The worst kept secret in recent months has seen most people involved in the tours and activities sector say that they’ve heard about Airbnb’s serious move on their world.

Much of the attention on today’s announcement at Airbnb’s Open conference in Los Angeles – in what the company calls the launch of Trips – will focus (from a tours and activities perspective) on its official roll-out of the Experiences element.

The company has been playing around with this idea for quite some time (allowing hosts to provide tours, etc), but the service will now include products that are provided by others – those who have no connection to the original host model.

Some 500 “experiences” in 12 cities around the world will kick things off, with providers in a further 39 cities being invited for screening ahead of being listed.

The company says:

“Having already transformed where people stay when they travel through people-powered hospitality, Airbnb is taking this same people-focused approach to the rest of the trip and, in doing so, providing a way for people to make money from their passions and interests.”

Another part of the new Trips mantra is the creation of destination content services, combining both a guidebook programme (pulled together by “cultural experts nd neighbourhood insiders”) and a deal with Detour for walking your audio guides.

But lurking in the weeds of the announcement by CEO Brian Chesky is how Airbnb wants its new vision to be about catering for “every aspect of the trip”.

Chesky talks about personalisation and machine-learning and contextual recommendations, but at a more simple level Airbnb says it is going to get into the transportation game, too.

No further details were forthcoming, but “flights and services” was a phrase left hanging in the air for those elsewhere in the industry who normally do not care so much about trendy accommodation sharing or selecting a violin making class.

Flight and car rental metasearch seems an obvious thing to do, so does some kind of strategic integration with ride-sharing providers.

But, in short, Airbnb really wants to take what it does to the next level.

As Tony Carne, general manager at Urban Adventures, notes on Airbnb’s push with Experiences:

“Not really a new concept as many have tried but not many have stayed the course.

“GetYourGuide started out this way but quickly pivoted and are now out chasing Viator and Trip Advisor as a market place for professional activities providers.

Carne believes Airbnb has some advantages over those that have previously tried and failed, not least because it is primarily a data-driven company and understands marketplaces.

“They [Airbnb] won’t fail here. Like they have with apartment and home stay accommodation they will bring the interesting neighbourhood experiences into the mainstream and turn on the demand.”