Airbnb Expands Offerings with New Service Booking Feature

Airbnb has announced a significant transformation of its platform, now allowing users to book various services and activities in addition to accommodations. This move aims to enhance the app's appeal year-round, rather than just during travel seasons.

The updated Airbnb app will enable users to order services directly, such as hiring a chef, scheduling a personalized photo shoot, getting a haircut, or arranging a massage. Additionally, users can participate in activities like horseback riding tours, museum visits, or cooking classes. Airbnb's CEO highlighted that customers typically choose hotels based on the services offered, and this update aims to merge the benefits of both traditional hospitality and unique local experiences.

The new service options will initially be available in 260 cities worldwide, with plans to expand further. Importantly, these services can be utilized even when users are not on vacation, allowing them to book experiences in their local area. The introduction of services will feature ten categories, with additional options to be added later. Airbnb assures that all service providers are vetted based on expertise and reputation, with an average of ten years of experience and verified identities.

This strategic change could mark a radical shift for Airbnb, traditionally utilized a few times a year for accommodation bookings. By facilitating service bookings in users' hometowns, the app could see increased engagement and frequency of use, potentially leading to higher revenue streams. The company's co-founder expressed optimism about the future growth of this aspect of the business, noting that travelers generally spend more on food, shopping, and activities than on their lodging.

As part of the rollout, Airbnb will also offer unique experiences in over 650 cities, with new options being added daily. Highlighted experiences include discussions with notable figures, such as an architect involved in the restoration of Notre-Dame Cathedral, or guided tours with experts on Incan history in the Andes. Airbnb Originals will feature activities with renowned personalities, encompassing various fields.

For each service booked, Airbnb will retain a percentage of the fee--20% from experience providers and 15% from service providers. This revenue will cover transaction fees, customer service, and insurance costs, while allowing service providers to operate independently of the platform. In Germany, the initial average cost for a service is expected to be around $66, equivalent to approximately EUR59, based on user interest patterns.