Airbnb hotel strategy makes a comeback

The company is reviving its hotel initiative through HotelTonight, with plans to onboard more high-quality hotels and offer competitive booking incentives

Airbnb is facing slowing growth in its core short-term rental business but is doubling down on international expansion and a renewed focus on its Experiences segment to reignite momentum. Yet, CEO Brian Chesky is optimistic, citing new strategies like global price transparency, hotel integration, and a stronger push into underpenetrated markets. While U.S. performance remains soft, Airbnb is betting on global growth and platform innovation to return to double-digit growth.

Key takeaways

• Growth slowing in core business: Airbnb’s core rental business grew less than 10% in 2024, with just 8% growth in nights and experiences booked in Q1 2025 - down from 9.5% a year ago.
• Higher-income travelers remain resilient: Affluent consumers continue to book without hesitation, especially for more expensive stays, which remain stable and healthy according to Airbnb’s CFO.
• Delayed, not canceled bookings: Many U.S. consumers are waiting before booking summer trips, particularly those with longer lead times. However, last-minute bookings remain strong.
• Experiences relaunch on May 13: Airbnb plans to reinvest in and expand its Experiences offering to diversify and boost growth beyond accommodations.
• Hotel strategy resurfaces: Airbnb is reintroducing its hotel push via HotelTonight, aiming to bring high-quality hotels onto the platform and offer competitive incentives like booking credits.
• Massive untapped potential: Only 1 in 9 travelers book Airbnb over hotels, and despite 1.5 billion device visits, many don’t convert—indicating major headroom for growth if conversion improves.
• Platform improvements underway: Initiatives such as the "Guest Favorites" label, global price transparency, and removal of 450,000 low-quality listings aim to enhance customer satisfaction and platform credibility.

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