Airbnb's New Strategy to Re-Engage Gen Z
Photo Caption: A living room at a short term rental in Nashville listed on Airbnb. Source: Airbnb.
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Airbnb's strategy boils down to this: Staying relatable to the typical 26-year-old could give the company an edge over rivals who often woo older travelers.
Young people made Airbnb a household name, and CEO and co-founder Brian Chesky doesn't want his online travel agency to lose its cool factor. Chesky is pushing the online travel agency to evolve faster to give the next wave of emerging travelers what they want most, namely, affordable places to stay and a hip, intuitive booking interface.
All of the company's changes announced this month and all of its strategy talk stated during an earnings call on Tuesday can be illuminated by Chesky's focus on creating "a product that the 26-year-old me would've wanted."
In the U.S., for instance, Airbnb's lowest-price listings have the highest occupancy, Chesky said. But there isn't enough budget-friendly supply.
"One of the most important things we can do to make Airbnb affordable is to make sure we have enough supply in the platform," Chesky said.
The company believes that adding supply and highlighting affordable options will help its rates continue to normalize post-pandemic and retain its appeal to Gen Z.
"Hopefully, our rates do not increase as fast as hotels do over the next couple of years," Chesky said.
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