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· Posted on
September 23, 2024

Forget the weekend escape, Airbnb now wants you to stay for a lot longer

Airbnb's CEO has said that the company will now be focusing on growing its long-term stays.

What's the key learning?

  • Companies facing potential challenges especially involving regulations must be able to adapt to overcome these rules by diversifying their product portfolio.
  • Airbnb is hoping this new strategy might help them avoid the wrath of many cities globally looking to tighten rules around vacation rentals.
  • Because as housing shortages become even bigger, you can bet that the finger will be pointed at Airbnb even more.

👉 Background: Airbnb has been around since 2007 and since then it’s completely disrupted the travel accommodation industry, spanning more than 7 million active listings across 220 countries.

👉 What happened: Airbnb's CEO has said that the company will now be focusing on growing its long-term stays. These are stays between 30-90 days.

👉 What else: This has come after Airbnb has been hit with a slew of new challenges:

  • Crackdown from local governments on short-term rentals
  • Increasing competition from other travel platforms like Booking.com which now offer "homes too"
  • More recently, customers tightening their wallets

What's the key learning?

💡Companies need to adapt their business models to maintain growth… or risk getting evicted.

💡With housing shortages becoming a hot topic, governments are side-eyeing platforms like Airbnb for exacerbating the problem. Cities like Athens and Barcelona have started to tighten short-term renting rules. So, as local governments increase regulation, Airbnb needs to stay ahead of the curve.

💡Over the past few years, stays of more than 28 days have jumped from 13% of all stays to now being around 18%. So Airbnb is shifting towards long-term stays where there's more flexibility, and they can dodge some of that regulatory wrath.

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