Airbnb’s Icons, group journey options have contributed to 1.7 million new profiles since Might

When Airbnb revealed its Icons final Might, this system obtained lots of buzz each optimistic and unfavorable — some have been impressed with the pop culture-aligned experiences whereas others referred to as the transfer a publicity stunt.

However one factor is for certain — the hassle is bringing new customers into Airbnb’s ecosystem: in its earnings report for Q3 2024, Airbnb mentioned Icons and new group journey options have contributed 1.7 million new profiles since their launch in Might.

That is instantly tied to one of many firm’s key objectives because it seems to be to promote extra than simply rental stays.

“It’s strategic for us to get extra accounts … particularly as you need to promote extra issues past houses,” mentioned Airbnb co-founder and CEO Brian Chesky in Might shortly after the launch. “I feel sooner or later, the profile would be the middle of the photo voltaic system of Airbnb, and the house can be one in all many classes orbiting the profile.”

In a name to debate the Q3 outcomes with analysts, Chesky mentioned Icons and different new options will contribute to its ongoing growth.

“I feel we’re simply scratching the floor of how massive this firm may change into,” Chesky mentioned.

Together with new profiles, Airbnb mentioned Icons has generated 60 million web site visits and 1 billion social media impressions.

Enlargement in new markets and new verticals

On the decision, Chesky talked up growth into new markets across the globe and in addition into new verticals.

“I feel the following chapter of Airbnb is beginning subsequent Might, as a result of I feel the following chapter is de facto about taking Airbnb and increasing it past our core enterprise,” Chesky mentioned. “And so I’ll define three areas which can be [going to] permit us to develop.”

The shortest horizon, he mentioned, is definitely the core enterprise. The corporate is approaching 500 million room nights booked in a yr and he believes it may attain 1 billion ultimately.

On the core enterprise entrance, the corporate additionally launched final month its co-host program, referenced throughout its second quarter earnings name.

“We launched the co-host community with 10,000 co-hosts throughout 10 nations, and within the three weeks since we launched, we have already obtained curiosity from over 20,000 potential new co-hosts,” Chesky mentioned. “That is large. That is method larger than we have been anticipating.”

Chesky mentioned Airbnb anticipates this sort of enterprise may unlock “tens of millions” of further listings by matching property house owners who haven’t got time to handle an Airbnb with different hosts who’re providing help.

“The perfect a part of all was this could be an alternative choice to among the third-party property administration firms,” he mentioned.

Airbnb additionally plans to give attention to international development. Most of its enterprise is concentrated in america, Australia, France, the UK and Canada, which signify about three quarters of gross reserving worth for the corporate. Chesky mentioned he sees alternative in rising markets, notably Mexico, Brazil, Germany, Italy, Spain, Korea, Japan, India and China.

Chesky has lengthy centered on Airbnb’s growth past stays — together with its Icons program, and its just lately reopened Experiences. On the decision Thursday, Chesky mentioned he couldn’t share all the pieces however pointed first to the chance to develop Experiences.

“One factor that we have previewed to you was we’re going to be reimagining Airbnb experiences and people are going to be coming subsequent Might,” Chesky mentioned.

Experiences may drive Airbnb utilization up as they gained’t be restricted to journey, Chesky mentioned.

“Airbnb is usually one thing you guide a few times a yr. Very, only a few individuals will guide Airbnb each month,” he mentioned. “Experiences are going to be, I feel, one in all many new choices that may enhance the frequency, that may make Airbnb go from an annual app to a month-to-month utilization app, and even for some individuals, a weekly utilization app.”

Chesky added that extra can be coming outdoors of lodging however didn’t provide a lot element.

“We have now some actually cool different issues that we’re engaged on, and it may principally be beginning with the closest adjacencies round journey. And over the following decade, we will go far past journey,” he mentioned.

AI for use for customer support

Whereas Chesky walked again his expectations that generative synthetic intelligence would remodel Airbnb in September, he additionally touched on AI integration within the type of a chatbot to enhance customer support.

Airbnb goes via what Chesky mentioned is a “actually thrilling transformation” on customer support.

“I do not need to be one of many CEOs [who] simply brings up AI each earnings name,” Chesky mentioned. “However we’re seeing some actually nice progress on AI-powered customer support.”

Chesky mentioned he prefers to talk versus name on the subject of customer support. Sooner or later, he anticipates that the overwhelming majority of chats with Airbnb friends can be intercepted and dealt with by an AI agent instantly.

He sees this taking place in three phases: First, the AI agent will deal with primary questions, which is rolling out as a pilot. Second, the AI will assist with personalization and ultimately the agent will be capable of “take motion” with the power to cancel reservations and the like for friends.

Monetary outcomes

Airbnb noticed $3.7 billion in income in Q3 this yr, a ten% enhance in comparison with Q3 2023, which the corporate mentioned was pushed by a rise in nights stayed, with nights and experiences booked up 8% yr over yr. Adjusted EBITDA was up 7% year-over-year to $2 billion.

Whereas lots of the outcomes have been sturdy, the corporate noticed a big lower in web earnings, from $4.4 billion in Q3 2023 to $1.4 billion in the identical interval this yr, attributed to $2.8 billion tax profit final yr. 

Airbnb elevated its Q3 advertising spend yr over yr, spending $43 million in Q3 this yr in comparison with $33 million in 2023. The corporate mentioned in its earnings launch that this was a deliberate enhance.

“Earlier this yr, we shared our intent to spend money on development in 2024,” Airbnb mentioned. “Accordingly, in Q3, gross sales and advertising expense grew quicker than income on a year-over-year foundation, partially because of investments in international markets in addition to extremely environment friendly efficiency advertising.”

The corporate was happy with its advertising investments, it mentioned, pointing to quicker development in bookings in low penetration areas, for instance.