Airbnb Expands Service Offerings Inspired by Amazon's Model

In a significant shift, Airbnb is set to broaden its platform's offerings beyond traditional lodging, drawing inspiration from Amazon. Customers will soon be able to book a wide variety of experiences, including guided tours and cooking classes, which are categorized as 'Discoveries.' These experiences range from a guided tour of Notre-Dame in Paris to a ramen cooking class in Tokyo.

In addition to travel-related experiences, Airbnb will also include various services unrelated to travel. This expansion encompasses offerings such as personal chefs, hairstylists, massage therapists, personal trainers, and makeup artists. Initially, Airbnb plans to launch these services in ten categories across 260 cities, with expectations to further expand the offerings in the months to come.

According to recent insights, the German market demonstrates a unique trend, with travelers booking their vacations earlier than their counterparts in other countries. This behavior presents a promising opportunity for Airbnb as it seeks to capture a larger share of the travel market.

While there are already platforms like Get Your Guide and Tui Musement offering similar experiences, Airbnb's founder believes there is still a gap in the market for a comprehensive service platform. He emphasized the potential for Airbnb to fill this void, aspiring to create a platform akin to Amazon's but focused on services, aiming for higher profit margins.

Airbnb's commission structure for service bookings reflects a competitive edge, with the company taking a 20% fee from 'Discoveries' and a 15% fee for service-related bookings, with a minimum charge of six US dollars. This model positions Airbnb in direct competition with hotels, which traditionally offer a range of services beyond mere accommodations.

Despite facing criticism for contributing to rising rental costs and housing shortages in urban areas, Airbnb continues to expand its operations. The company has been subjected to stringent regulations in popular cities, which aim to mitigate the impacts of short-term rentals on local housing markets.

In late 2020, Airbnb successfully executed one of the most notable IPOs of the year, with its stock price surging more than 100% upon debut. Currently, the company holds a valuation of approximately 85 billion US dollars, significantly lower than its competitor Booking Holdings, which is valued at around 170 billion US dollars.

With this latest expansion, Airbnb aims to enhance its market presence and potentially drive up its stock value, responding to both consumer demand and competitive pressures in the evolving travel industry.