Brian Chesky on Airbnb's Post-Pandemic Transformation

Airbnb's Evolution: Adapting to the New Landscape of Travel

As the world moves beyond the pandemic, Airbnb is undergoing a significant transformation. The company recently unveiled a comprehensive redesign of its website and introduced a wide range of new features geared towards both hosts and guests.

This release encompasses over 100 new features and upgrades, all aimed at expanding and diversifying the supply side of the business. The goal is to not only stimulate overall growth but also to effectively address the evolving needs of travelers.

Responding to a Changed Travel Environment

These changes are a direct response to the shifts in travel patterns observed during the pandemic. Airbnb itself has also experienced a period of evolution and adaptation.

Brian Chesky, Airbnb’s co-founder and CEO, discussed the future of travel, the company’s efforts to support a changing market, and the challenges of leading a major travel startup during a global crisis in an interview with TechCrunch.

For a more detailed overview of today’s updates, please refer to our dedicated article here.

Key Takeaways

The core of the update can be summarized as follows:

• Enhanced search flexibility regarding dates, destinations, and matching preferences.
• Streamlined onboarding and improved efficiency for hosts.
• Expanded and improved customer support services.

At a high level, these changes are designed to stimulate demand, increase supply, and maintain a healthy marketplace for both hosts and guests.

Interview with Brian Chesky

The following is an excerpt from TechCrunch’s interview with Brian Chesky, lightly edited for brevity and clarity.

TechCrunch: Considering the more than a year of pandemic-induced changes in travel, and your company’s response, where does leading during a pandemic rank among your significant CEO experiences – alongside the IPO and early launch days?

Brian Chesky: I initially believed starting Airbnb was the most challenging endeavor I’d undertake. However, leading a travel company through a pandemic proved to be even more complex. It felt as though I aged a decade in a single year.

Our business experienced an 80% decline in just eight weeks. It’s akin to driving at high speed and suddenly slamming on the brakes – the consequences are severe. Imagine rebuilding the car while still in motion, and simultaneously preparing for an IPO, all conducted remotely.

We didn’t rest on our laurels. The initiatives announced today were largely developed starting in January or February. We were entirely focused on the IPO initially, but quickly realized the potential for a travel rebound. It began as a period of assessment, but quickly evolved into a comprehensive effort resulting in over 100 upgrades.

Sam Shank, Airbnb’s head of guest experience, highlighted that these redesigns primarily focus on growing and diversifying the supply side of the business. Is this an accurate assessment?

I believe it centers around several key aspects. First, we aim to simplify the process of becoming a host. The easier it is to host, the more individuals will participate. This was our original approach. Second, we’re striving to make Airbnb more user-friendly for guests. Finally, we’re designing for a new level of flexibility in travel.

The traditional concept of travel is evolving, blurring the lines between living and traveling. People are now visiting more destinations, traveling at different times, and staying for longer periods. This represents a significant turning point in travel, and we are adapting our platform accordingly.

By empowering more individuals to become hosts and offering greater flexibility, we can connect a wider range of people. This will facilitate matches between hosts and guests who might not have discovered each other previously.

The Importance of Growing the Host Community

Earlier, you mentioned expanding the number of individual hosts. Why is increasing this supply so crucial?

There are several compelling reasons. First and foremost, individual hosts embody the essence of what we do. While hotels provide accommodation, we offer a unique opportunity to experience a destination like a local and forge a connection with the community.

Individual hosts, who often reside in the community and utilize their homes, provide a more authentic and personalized experience. Statistically, individual hosts consistently receive higher five-star ratings than professional hosts. This suggests that guests seek unique and different experiences, which individual hosts often deliver.

Balancing Individual and Professional Hosts

Many of these new tools and features are tailored towards existing and prospective individual hosts. How do you approach developing features for professional hosts?

It’s a matter of prioritization. We believe that individual hosts are central to our unique value proposition. However, we welcome professional hosts and are actively working to improve their tools, including calendar management and other essential products.

Our primary goal is to offer unique experiences through individual hosts, but we also recognize the need to provide a comprehensive range of options. We supplement individual listings with professional property managers and hotels to ensure availability and cater to diverse preferences.

Addressing Past Tensions with Professional Hosts

During the pandemic, there was some friction between professional hosts and Airbnb regarding refunds and flexibility. Do you believe that relationship is improving?

I sincerely hope so. Last year, we faced difficult decisions, including overriding cancellation policies. We felt it was crucial to prioritize guest safety during a global health crisis.

We allocated $250 million to support hosts, although it wasn’t sufficient to fully compensate everyone. We’ve since focused on actively listening to host feedback, conducting listening sessions with thousands of hosts, and implementing improvements. We’ve updated our cancellation policies, established a host advisory board, and created a host endowment exceeding $1 billion to ensure the long-term sustainability of hosting.

Building trust is an ongoing process. We’ve made significant progress, but we recognize the need for continued effort.

The Future of Travel Trends

Do you anticipate the current travel trends – such as a preference for rural destinations and a decline in business travel – will persist?

I believe most of these changes are here to stay. While some aspects may fluctuate, the fundamental shifts are likely to endure. Business travel, in particular, is unlikely to return to pre-pandemic levels. The threshold for in-person meetings has increased, and remote collaboration has become more prevalent.

The flexibility to travel at any time is also a lasting trend. Families are increasingly embracing longer stays and nomadic lifestyles. Population redistribution is another significant factor, with people realizing they no longer need to be confined to major cities.

Cross-border travel will eventually recover, but the newfound flexibility will allow people to combine stays in different locations, potentially renting out their homes to offset costs. Ultimately, the lines between traveling and living are becoming increasingly blurred.

This shift is not solely attributable to Airbnb; it was driven by the pandemic. However, it represents a profound transformation in the very concept of travel, potentially as significant as the invention of the airplane.

The internet initially changed how travel was *sold*, but COVID has altered the *product* of travel itself – where people go, how long they stay, and the overall experience.

Accelerated Evolution

It’s possible these trends would have emerged eventually, perhaps in 20 or 50 years, but COVID accelerated the timeline.

Precisely. It’s similar to the retail industry, where the shift to online shopping was accelerated by the pandemic. Travel has been even more profoundly impacted, and many businesses faced existential threats. Our ability to adapt and rebound is a testament to the resilience of our model and the dedication of our employees.

The Greatest Challenge Ahead

What do you consider Airbnb’s greatest challenge moving forward?

At its core, it’s not a business challenge. While we need to attract hosts and ensure safety, the most significant challenge is internal. The pandemic taught us a valuable lesson. We had become complacent and lost some of our focus.

The crisis forced us to simplify, refocus on our core values, and operate with the agility of a startup. We rediscovered our innovative spirit and a sense of pride in our work. Maintaining this mindset is crucial.

My biggest concern isn’t external factors like competition or regulation; it’s preserving the principles that have made Airbnb successful. If we can remain a startup at scale, we can achieve anything. I’m reminded of TechCrunch’s initial coverage of Airbnb in 2008 – a pivotal moment in our journey. I hope we can continue to embody those principles for years to come.