Airbnb has a new, old plan to eat into hotel business

With Airbnb Rooms, the company will promote private rooms more, highlighting lower prices relative to hotels

May 4, 2023

Airbnb Chief Executive Brian Chesky knows that accommodations on his platform have gotten "expensive," and he's hoping the company can get back to its roots more.

Key takeaways

  • Part of Airbnb's strategy doesn't involve actually lowering prices, but rather giving more play to options deemed to represent good value, namely the ability to book a private room in someone's home;
  • The company rolled out a series of product improvements this week, including a revamp of the private-room interface, intended to make this option, called Airbnb Rooms, more visible and appealing;
  • With the update, users would be able to sort through private-room accommodations better with a designated category for this type of lodging.

Get the full story at Morningstar

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