Sunita Somvanshi
Tejal Somvanshi
In a clear move to compete with hotels and capture more of the travel market, Airbnb has unveiled what it calls the “2025 Summer Release.” The company is expanding beyond its core home-rental business with a redesigned app that integrates two major new offerings: “Airbnb Services” and revamped “Airbnb Experiences.”
Services: Bringing Hotel Amenities to Your Rental
Airbnb Services launches in 260 cities with ten categories:
- Personal chefs and catering
- Prepared meals
- Photography
- Massages and spa treatments
- Personal training
- Hair styling
- Makeup services
- Nail care
These services can be booked whether you’re staying at an Airbnb or not. The company has vetted service providers who have an average of 10 years experience and must complete identity verification and submit relevant licenses.
“People choose hotels for their services. People choose Airbnbs for the space,” said Brian Chesky, Airbnb CEO. “Now, we’re giving you the best of both worlds—amazing homes with services that make them even more special.”
Experiences: Beyond Standard Tourism
The company has relaunched “Airbnb Experiences” in 650 cities, focusing on activities hosted by locals. A standout feature is “Airbnb Originals” with high-profile hosts, including celebrities like Sabrina Carpenter and NFL quarterback Patrick Mahomes.
“Today’s travel activities offer no real connection to the city you’re visiting,” Chesky said. “The most authentic way to explore a city is with the locals who know it best. With Airbnb Experiences, don’t just see a place—experience it.”
App Redesign: Integrating All Offerings
Airbnb has rebuilt its app from scratch with:
- An “Explore” tab to discover homes, services, and experiences
- A “Trips” tab showing a detailed itinerary
- Improved messaging with photo and video sharing
- Enhanced profiles showing travel history
The company is investing $200-250 million in this new business segment.
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Market Context: A Response to Competitive Pressures
Industry analysts note that this move comes as Airbnb faces increasing challenges.
“Airbnb is figuring out how they can grow the business throughout someone’s entire trip, not just the stay,” said Jamie Lane, chief economist at AirDNA. “The company’s earnings are still up, but they’re pretty saturated in core markets and the big cities.”
The expansion represents a deliberate attempt to address key points where hotels have maintained advantages:
- Convenient services and amenities
- Quality control and consistent standards
- All-in-one booking for accommodations and activities
This strategy follows Airbnb’s implementation of displaying total costs (including fees) upfront in search results. While an “optional price display toggle” was launched in the U.S. two years ago, a Federal Trade Commission ruling from late last year now requires such transparency.
Customer Acquisition Strategy
By offering services even to non-Airbnb guests, the company is creating new entry points to its platform. The celebrity-hosted “Originals” appear designed to generate social media buzz and attract new users.
Dave Stephenson, Airbnb’s business chief, told CNBC: “We now feel like we have such a strong foundation that we are capable of building and expanding.”
For hosts, the expansion creates new revenue opportunities. The company has also improved host management tools, including a redesigned calendar with hourly scheduling and better reservation management.
Airbnb’s stock fell earlier this month after the company issued disappointing revenue guidance in its Q1 earnings, citing “softness” in travel from Canada to the U.S.
Whether this comprehensive approach will succeed in winning over hotel loyalists and expanding Airbnb’s market share remains to be seen as the global rollout continues.
