Airbnb is planning to offer longer-term rentals as part of major plans for growth for the travel accommodation app.
Chief executive Brian Chesky told the Financial Times that from next year the online rental company would “go a little bit beyond its core business”, including an expansion of its experiences and services. He pointed to more changes, due next month, that would mark the “biggest update to Airbnb ever”.
“Travel is our sweet spot,” he said. “Eventually the big frontier for Airbnb is to go beyond travel,” adding that “there’s an eventual opportunity for Airbnb to become a greater part of your daily life. Not just once or twice a year.”
Offering rentals of up to a year represented a “huge opportunity”, Chesky said.
The FT says his vision for a renewal of Airbnb’s business model comes as the technology app faces pressure from policymakers worldwide over depleting housing stock in major cities. New York, which was one of Airbnb’s biggest markets globally, this month introduced rules limiting residents’ freedom to rent rooms in their homes on Airbnb, culling about three-quarters of listings in the city.
Chesky does not see New York as a “precedent”, though. “Most people in New York City and beyond feel like there was absolutely a win-win on the table,” he said, citing offers to city authorities to introduce a hotel tax or a housing registration scheme to limit people renting their primary homes.
Airbnb this year launched its “rooms” feature, a return to its roots when it would offer space in people’s homes, as well as greater insight into hosts, as part of more than 50 new features and upgrades to the app.
This is an interesting and potentially worrying move. Airbnb have dodged regulatory breaches internationally by playing the ‘we are a portal not an agent’ line. This move away from this will expose them considerably.
Whilst they are a great consumer platform, they are also renowned for bulldozing regulatory compliance- so how they approach the uk legislation will be interesting.
I’d be most concerned if I was openrent or any other landlord direct platform as this is a huge brand coming to market.
With Silverlake owning large stakes in Zoopla & Airbnb this is no real surprise- in fact probably the biggest surprise is that this didn’t happen sooner.
With Airbnb facing huge issues in some territories (like being banned in New York) they will have to pivot to keep growing.
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Ouch
Bad news for letting agents
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Yes, as much as Boomin was “bad news” for Rightmove & Zoopla…
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