Airbnb is keeping up with the times, implementing artificial intelligence (AI) initiatives, expanding pricing flexibility and leaning into Gen Z-fueled interest in off-the-beaten-path travel.
Beyond that, the short-term rental giant is also actively pursuing its hotels vertical.
“We’re starting in a focused way, in particular, in the cities of New York, San Francisco and a few others,” Airbnb co-founder and chief strategy officer Nathan Blecharczyk said during a fireside chat at ITB Berlin last week.
Speaking with Mitra Sorrells, SVP of content for Phocuswright, Blecharczyk added that Airbnb is adding hotel-specific functionality such as the ability to choose room type.
“We recognize that even our most loyal customers still book hotels sometimes, because there’s certain trips where you just need a hotel,” he said, noting that Airbnb also offers boutique hotels and independent properties benefits in the form of international travelers and a younger demographic.
In the long term, Blecharczyk said Airbnb wants to help those staying in a hotel discover “what’s out and about” and explore the destination around them.
The conversation later shifted to AI, which Airbnb is currently using to bolster its customer support. Like other travel brands, down the line, Airbnb also hopes to leverage AI as a personal travel agent.
But when asked about whether the company fears disintermediation, Blecharczyk said Airbnb doesn’t see it as “a heavy concern.”
“I think we are in a much stronger position than a lot of tech companies out there that are very much worried that their software can now be reproduced by AI and workflows can be reproduced by AI because, again, we have such a strong relationship with our supply side of the marketplace.”
Blecharczyk also discussed the popularity of nature tourism, with 60% of Airbnb’s business in Europe outside of cities. The exec also used the opportunity to confirm a new partnership with the German Tourism Association to launch a $1 million fund promoting non-urban travel.
According to Blecharcyzk, the partnership offers a short-term benefit by positioning Airbnb as a partner for destination marketing organizations, but in the long term, it will also help drive more travelers to more rural locales.
The CSO further discussed city regulations and housing, Airbnb’s priority markets and more. Watch the full discussion below.
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