Airbnb CEO Brian Chesky on the Future of Work | Insights

Airbnb's New Features and Future Plans

Airbnb recently unveiled over 50 new features designed to enhance the platform. Key improvements include an upgraded Translation Engine, a tool to verify WiFi reliability in rentals, an expanded Ask A Superhost program, increased search flexibility, and verification tools for listed accessibility features.

Introducing AirCover: Comprehensive Protection

However, the most significant announcement centers around AirCover, a new coverage policy offering comprehensive protection for listings. This includes safeguarding against damage, theft, and even pet-related incidents, alongside deep cleaning and income loss protection.

Addressing Supply and Demand

CEO Brian Chesky highlighted a current challenge: demand is exceeding supply as pandemic restrictions ease and travel resumes. This situation presents a “high-class problem” for Airbnb, requiring a focus on growing the supply side of the business.

Leadership Through Crisis and Growth

A recent interview with Chesky explored his experiences leading the company through the pandemic, the future of Airbnb, and strategies for expanding the business.

Navigating the Pandemic and Beyond

TechCrunch: Considering the immense difficulty of leading a travel company during a pandemic, how secure does Airbnb feel now compared to a year ago, especially with a strong Q3 earnings report and increased travel interest?

Brian Chesky: We are considerably more secure now. We’ve reached solid ground. Prior to the pandemic, Airbnb and Uber were leading companies, benefiting from significant trends. However, the pandemic abruptly caused an 80% business loss within eight weeks.

Financial Resilience and a Shift in Travel

We secured $2 billion in emergency funding, including a $1 billion loan. Now, we’ve achieved $1 billion in profit in Q3 – akin to a billion-dollar funding round without equity dilution. The Airbnb brand remains strong, and travel is rebounding.

Crucially, new travel and living patterns have emerged and appear sustainable. Monthly Airbnb stays are increasing, driven by the shift away from traditional five-day office weeks. Furthermore, our cost structure has improved significantly.

Lessons Learned and Future Outlook

Having navigated a crisis that threatened our existence and successfully taken the company public during a pandemic, I believe we can overcome any challenge. We’ve become tougher and more focused. The collective experience has instilled a sense of confidence and capability.

The Future of Work and Airbnb HQ

Question: Given the belief that remote work is here to stay, what does this mean for Airbnb’s headquarters? Will the lease be renewed, and what will the future workforce look like?

We will maintain offices, though potentially smaller. Our San Francisco headquarters will remain, and we’ll adopt a flexible work policy. The specifics are still being determined, as every CEO is grappling with the future of work.

Beyond Hybrid: A Flexible Approach

“Hybrid” feels like an uncertain placeholder. We’ll likely embrace a more flexible model, with offices serving as hubs for collaborative activities that are difficult to replicate remotely. Heads-down work is best suited for comfortable, individual environments.

Instead of rigid schedules, we’ll likely implement periodic, immersive gatherings – perhaps quarterly or annually – for focused collaboration. We aim to design a workplace that reflects this flexibility, avoiding the inconsistency of benefiting from remote work while requiring employees to return to the office.

Avoiding Isolation and Embracing Digitization

However, we must avoid the pitfalls of excessive screen time and isolation. The pandemic accelerated digitization, which is largely positive, but also carries risks. We must address potential disconnection and ensure inclusivity in this evolving landscape.

Managing a Remote Workforce

Question: What has been the most challenging aspect of managing a remote workforce, and how have you addressed it?

It’s difficult to separate the challenges of remote work from those of navigating a crisis. Managing a crisis remotely is particularly complex, as fear and uncertainty can lead to feelings of isolation. Providing reassurance and connection during such times is crucial, but challenging when physical presence is limited.

Maintaining Connection and Serendipity

Personally, I also experienced feelings of isolation. The spontaneous interactions and informal check-ins that occurred in the office are absent in a remote environment. Every connection now requires deliberate scheduling, lacking the serendipity of hallway conversations.

Despite these challenges, remote work offers significant efficiencies. We’ve implemented 150 upgrades this year, a number unmatched during our time in the office. This demonstrates the benefits of a remote-first approach.

AirCover and Expanding the Host Community

Question: AirCover appears to be a major step towards attracting new hosts, particularly individual owners. Is this a fair assessment?

Yes, AirCover benefits all hosts, but it’s especially valuable for individual owners who may not have the resources for comprehensive insurance coverage. It addresses a primary concern for potential hosts: the fear of damage or theft to their property.

Building on a Foundation of Protection

We’ve built AirCover upon our existing $1 million guarantee and liability insurance, incorporating host feedback to streamline the claims process, offer pet damage protection, and provide deep cleaning coverage. The response from existing hosts has been overwhelmingly positive.

We anticipate that AirCover will attract a new generation of hosts, particularly everyday individuals who previously hesitated due to risk concerns.

Addressing Pet Damage and Cleaning Fees

Question: Pet protection introduces a new layer of complexity, potentially leading to more frequent, low-level damage claims. How did you navigate this consideration?

We already received claims related to pet damage, but they were previously excluded from coverage. Hosts often incurred cleaning costs out-of-pocket, which were then passed on to guests through cleaning fees. This led to complaints on social media.

A Holistic Approach to Pet-Friendly Hosting

Our theory is that the world is becoming more remote and people are traveling with their pets. Hosts want to accommodate pets to increase bookings and nightly rates. We addressed this by enabling hosts to charge pet fees and providing protection against pet damage and deep cleaning costs.

This will likely lower cleaning fees, increase pet-friendly listings, and reduce disputes over pet-related damage. It’s a design-driven solution based on extensive research and feedback from hosts and guests.

Meeting Demand and Future Innovation

Question: With high demand and limited availability, how concerned are you about potential customers being unable to find suitable accommodations?

It’s a problem, albeit a positive one. It indicates strong demand for our platform. We currently have nearly 6 million listings, more than before the pandemic, while many competitors have reduced their offerings.

Investing in Host Support and Growth

Programs like Ask A Superhost, which connects new hosts with experienced mentors, are proving successful. AirCover will further incentivize individuals to become hosts, addressing the supply shortage.

We are committed to providing solutions for guests, and we believe that continued innovation and host support will alleviate the current challenges.

Looking Ahead: Continued Innovation

Question: What can we expect from Airbnb in 2022?

We’re focused on the “live anywhere” trend and exploring ways to support travelers who are embracing remote work and extended stays. We’re committed to continuous innovation and design, ensuring that Airbnb remains a dynamic and responsive platform.

A Design-Driven Approach

I believe that the travel industry often prioritizes marketing over product development. We strive to differentiate ourselves through a design-driven approach, prioritizing empathy and understanding the needs of both hosts and guests.

One Regret: Unilateral Cancellation Decisions

Question: If you could have one do-over from the past two years, what would it be?

In March 2020, at the onset of the pandemic, I unilaterally overrode more than $1 billion in host cancellation policies and refunded guest bookings. While I believed it was the right decision at the time, I failed to consult with hosts beforehand, which damaged trust.

Rebuilding Trust and Collaboration

We’ve spent the past year and a half rebuilding that trust through open communication and collaboration. This experience led to the creation of the Host Advisory Board and a renewed commitment to working *with* hosts, rather than *for* them. The positive feedback we’re receiving today is a testament to this shift.