Airbnb Looks To Expand Further Into Long-term Rentals

At the Skift Global Forum in New York City, Airbnb co-founder and CEO Brian Chesky highlighted the long-term rental segment (stays of 28 days or more) as a “huge growth opportunity” for the company. This follows a steady increase in bookings for stays between 30 and 90 days over the past few years. Chesky noted that long-term rentals now make up 17-18% of Airbnb’s business, compared to just 13-14% before the pandemic.

The shift toward long-term rentals is a response to growing restrictions on short-term rentals in various global markets. Cities like New York and Barcelona are moving to ban short-term rentals, while other destinations, including Budapest, Athens, Lisbon, and Madrid, are implementing district-specific bans or halting new licenses to boost affordable housing for residents.

By expanding into new areas like long-term rentals, Airbnb is making its operations more resilient despite tightening regulations. At the same time, the company is adapting to changing consumer preferences and habits that have evolved since the COVID-19 lockdowns. With a strong brand in the short-term rental space, Airbnb aims to capture a similar presence in the extended-stay market, significantly as travel, hospitality, and real estate industries increasingly overlap. In key cities like Melbourne, where short-stay apartments are popular among business travellers and tourists alike, this shift towards long-term rentals could open up new opportunities. Melbourne short stay apartments offer a flexible and convenient option for visitors, making it an ideal location for Airbnb to expand its long-term offerings while maintaining a foothold in the short-stay market.

Chesky also mentioned that sponsored home listings could become a “billion-dollar” revenue stream for Airbnb, drawing from successful monetization models used by companies like Booking.com and Uber.

In its second-quarter earnings report last month, Airbnb announced it had surpassed eight million active listings, driven by growth across all regions. However, more than 200,000 listings were removed for failing to meet guest expectations, as the company aims to ensure higher quality and consistency in its stays.

Chesky hinted at the need for “multiple new things” to broaden Airbnb’s customer base. This includes the launch of a co-hosting marketplace later this year, which will connect homeowners who lack the time to manage their listings with others who can.

In addition to its focus on long-term rentals and co-hosting, Airbnb plans to relaunch its Experiences program next year, following the introduction of Icons, a new category featuring experiences hosted by stars from music, sports, film, and more.

Earlier, Airbnb's chief business officer, Dave Stephenson, told Bloomberg that the company is also considering luxury-style services for guests, such as personal chefs, massages, mid-stay cleaning, easier check-ins, spa services, and refrigerator stocking, as part of its ongoing efforts to enhance the guest experience.

It won’t be easy for AirBnb, companies like Corporate Keys have been offering 28 night plus corporate housing for over 15 years.