Airbnb CEO: “We are not the biggest contributor to overtourism”

I wouldn't describe it as dramatic. We're seeing a slight shift in travel behavior, and yes, some Canadians are choosing to travel within their own country right now. When they book an Airbnb in Canada, they know that their money, minus the 15 percent commission we receive, is going to Canadians. This is part of a broader trend; many people like to support local businesses.

There are political reasons for this, and there are also financial reasons. But the vast majority of people still want to travel, and our most popular destinations on Airbnb are still popular. This applies to Paris and London, but also to Los Angeles.

We're probably more adaptable and resilient than any other travel company in the world. We're present in almost every country and offer all kinds of accommodation, whether in cities or rural areas, for a small or large budget. If people avoid a certain country, they'll simply travel to another country or within their own country. We were able to adapt even during the coronavirus pandemic. Many people didn't want to fly but still traveled, but to closer places that they could reach by car.

I wouldn't expect that. Many people will still travel to the US, and the World Cup is the biggest event in the world. I think people will follow their passion for soccer, and that will be more important to them than any other opinions they may have.

Our core business is complex; I wasn't entirely aware of that when we founded Airbnb. Our new services business is complicated in a different way, although our relationship with cities will probably be simpler here. But above all, we're doing this because we think people want it and there hasn't been a good platform for it yet. We've changed the way people travel with Airbnb, but we asked ourselves if we could stand for more than just a place to stay. I think this will be the next big chapter for our company.

Yes, although I don't want to promise or predict it. The total market for discoveries and services could then be larger than our core business if people also use them in their hometowns.

Yes. And that's the big question: Will people think of Airbnb when they're at home? I don't see why they shouldn't, but it will certainly take time and not happen immediately. Our brand is very strong, but it's also very much associated with travel. We'll initially market our services primarily in connection with travel and then gradually expand that to locals over the next few years. The market is huge. We're starting with ten services, but we could eventually expand that to several hundred. And there's no Amazon for services yet.

I think that would be great. But with some differences from Amazon. We're not about mass-produced goods, but rather offerings with higher profit margins. And we bring a different design philosophy.

Yes, and I see experiences and services as two of those businesses. I can also imagine offering hotel stays through Airbnb.

They want to be 100 percent on Airbnb. I know this because we've spoken to many of them. For hotels, it's just a question of whether we can benefit them. We offer one of the largest travel platforms in the world. Furthermore, the commission we charge is often lower than on other travel portals, especially for independent hotel operators, of which there are many in Europe. We offer an alternative marketing channel that can help hotels fill their rooms. We'll be doing some cool things with hotels in the next few years.

I still think this is a massive opportunity, and I think it's definitely one of the multi-billion-dollar businesses I see in our future. We're already moving in this direction; 18 percent of our booked nights are for stays longer than 30 days. I also see synergies here with our other services business. These offerings can help, for example, meet people and find your way around when moving to a new city.

It certainly won't get any easier. But I think our relationship with regulators is improving overall. We mustn't forget that we're in more than 100,000 cities around the world, and more cities mean more regulation. But I don't think we're having existential discussions anymore. Unlike a few years ago, it's no longer a question of whether we exist, but rather how we exist. I think the tide is turning. It will also help us if we broaden our business now. I see this as an opportunity for a fresh start in many markets.

The other services should face considerably less regulatory resistance. And when we partner with hotels, we bring on board a group that has traditionally been quite hostile to us. All of these things can help Airbnb be associated a little less with a business that is emotionally charged for some people. They then perceive us as a much broader company, and I think that's helpful when meeting with regulators. Right now, Airbnb is primarily about accommodations; in a year, it will be about much more.

I believe there's a way back for Airbnb in New York, although I can't say when. We're trying to work with the City Council on this, and I'm quite optimistic. The assumption behind the stricter regulations was that Airbnb would drive up rents. But we've seen that rents have risen even faster since then than before the ban, and hotel prices are much higher as well. I'm optimistic that there will be a wave of better regulation in the coming years.

Yes. The bigger you get, the more critically you are scrutinized, and that's fine. But it should be fair and proportionate. Many cities struggle with overtourism and a lack of housing, but I don't think we contribute most to such problems. And we're happy to work with regulators, for example, by encouraging people to stay outside of city centers. We've also agreed to many regulations, such as caps on the number of days a year that you can rent out accommodation on Airbnb. The fact is, in most cases we work in partnership with cities, and I see us as part of the solution, not part of the problem. Especially in the age of artificial intelligence.

I mean this in light of the concerns about which jobs will disappear in the future. With our new services, we're enabling millions of people around the world to earn money, and I think these things will be fairly safe from AI for a long time. I don't think you'll be getting a massage from a humanoid robot anytime soon.

In the age of AI, the question is what people will do in the future. I can't answer that fully; no one can. But I'm pretty sure we want to live not only in the digital world, but also in the real world. I see Airbnb as a deeply humanistic technology company; we stand for the real world. Our goal is to use technology to help people unplug from their devices and step out into the real world. And as for our new services, I think an entire economic ecosystem will emerge around them. Services are already a big part of the global economy, but they haven't been aggregated in the way we have.

Germany is one of our expansion markets. It's the largest economy in Europe, and Germans spend more on travel than any other European, so it's a big focus for us. I think our new services could help introduce more Germans to Airbnb, and I'll be coming to Berlin myself in a few weeks.