Airbnb will never be Airbnb again joint economy is dead

10.19.2019     /     News author: Oksana

Airbnb will never be Airbnb again  joint economy is dead
© Instagram / Airbnb
Times change and fashions with them. In addition, they do it faster and faster. Thus, what used to be attractive now is not, and companies that are not able to adjust end up dying. A decade ago, while the world was sinking, the term collaborative economy began to be used as a term that would explain the future. A wave, similar to what has happened with the word blockchain, to which many companies joined, although two of them clearly took the lead: Uber and Airbnb. Now, the first one has crashed on the stock exchange and the second one prepares its debut in the park by denying said expression and its origins.

Brian Chesky, one of the founders and current CEO of the firm, is immersed in the road show, interviews with investment firms that should value the company for its IPO, which is taking it throughout the United States. The New Yorker has worked this moment since it became official that 2020 would be the year of Airbnb's debut at the park. Despite this, there is still a term that is capable of tensing more than the button on his shirt (he is a recognized bodybuilder): the collaborative economy. It turns out that the company's mandamas now strives to make it clear to analysts that the current, and future, business structure of the company has nothing to do with the original Air Bed and Breakfast.

Thus, during an interview, an executive asks him about the security he offers or the hidden cameras, he dispatches it cleanly referring to his Airbnb Plus platform, which has a higher level of verification. It is also capable of converting a concern about the entry of a new competitor, for example, the service that is being launched by the Marriott hotel giant called ‘Homes & Villas’ in support of its business model. Moreover, he is still free to respond that the company is allowing hotels to list rooms on its website. Also his answers are oriented to bury the term collaborative economy: "We are not Uber (nor WeWork) or Lyft," he replies. Chesky leaves nothing to chance and where a problem appears, he presents it as an opportunity.

In truth, Chesky's strategy seems the most sensible at this point for two reasons mainly: on the one hand, none of the large companies born from the collaborative economy pattern seems to be doing too well today. Uber has lost between 30% and 40% in the stock market in the few months it has been trading, in the case of Lyft the crash is 50% and WeWork has been forced to cancel its debut and is now in doubt until its viability immediate. Analysts no longer believe that this word is synonymous with the Bible ‘multiply bread and fish’. On the other hand, the manager is right that the new Airbnb that is being formed is not only totally different, for everything it offered, to what it was before, but also to the previous companies.

Since, in 2009, Chesky along with his friends Joe Gebbia and Nathan Blecharczyk had the idea of ​​setting up a platform to rent spare beds in the cities during the conferences, their business lines have multiplied. Since then, more than 500 million rooms have been reserved through its platform, which now offers more than 7 million properties (including 4,900 castles and 2,400 tree houses) in more than 100,000 cities. Every night, about 2 million people worldwide stay in an Airbnb.

While the vast network of properties was acquired in the first years of its development, in recent years it has focused on opening new business opportunities. Thus, in 2016 Airbnb Experiences has launched that links guests with local people who provide guided tours or workshops. It also has Airbnb Adventures with which it organizes trips for up to 12 people to exotic places. The recent launch of Animal Experiences that is based on tourism from a point of view of interest in the fauna of a certain place and interact with it. Even the Premium version provided by Airbnb Plus or Airbnb Luxe (where you can find the almost 5,000 castles that appear on its website).

In short, Airbnb is taking its business much further from simple accommodation to become a global tour operator. In addition, in one focused on the consumer experience, where it has a broad advantage over any competitor thanks to the data collected. Therefore, in the face of the next movements, it is intended to partner with the airlines, in fact, the firm has hired Fred Reid, executive director and founder of Virgin America. In the end, your big bet is to unseat or at least become the great alternative to Booking, but with a product line and a much larger portfolio of possibilities.

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