- tech360.tv
Airbnb Sets Sights on Long-Term Stays Amidst Regulatory Challenges
Airbnb is focusing on growing its long-term rental business, targeting stays of 28 days or longer. Long-term rentals now account for 17-18% of Airbnb's business, up from 13-14% pre-pandemic. The company is exploring new services, including matching potential hosts with homeowners.
CEO Brian Chesky revealed this new direction at a recent travel conference, highlighting the company's commitment to expanding its offerings in the face of growing scrutiny of short-term rentals in popular tourist destinations.
Chesky emphasised the significant growth potential in stays ranging from 30 to 90 days, which he referred to as 'monthly stays' or 'seasonal stays'. This segment has already seen substantial growth, now accounting for 17% to 18% of Airbnb's business, up from 13% to 14% before the pandemic. The company defines long-term rentals as stays of 28 days or longer.
This strategic pivot comes as local governments worldwide are implementing stricter regulations on short-term rentals in an effort to increase housing supply for full-time residents. Tourist hotspots like Athens and Barcelona are at the forefront of this regulatory trend, prompting Airbnb to explore new avenues for growth.
Airbnb's expansion plans extend beyond just long-term rentals. The company is also looking to enhance its experiences business and introduce innovative services. One such initiative aims to connect potential hosts who lack properties with homeowners who have available space but are unable to manage the hosting process themselves.
Chesky disclosed plans to introduce sponsored home listings. Drawing inspiration from Uber and competitor Booking Holdings, he projected this feature could become a billion-dollar revenue stream for Airbnb.
The company's shift towards long-term rentals and new services comes at a time when tourist hot spots like Athens and Barcelona are tightening regulations on vacation rentals to address housing shortages. This regulatory environment presents both challenges and opportunities for Airbnb as it navigates the evolving landscape of the global hospitality industry.
• Airbnb is focusing on growing its long-term rental business, targeting stays of 28 days or longer
• Long-term rentals now account for 17-18% of Airbnb's business, up from 13-14% pre-pandemic
• The company is exploring new services, including matching potential hosts with homeowners
Source: REUTERS