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Home / Travel

Airbnb pared back: Booking site halts experiences to focus on budget room products

Thomas Bywater
By Thomas Bywater
Writer and Multimedia Producer·NZ Herald·
5 May, 2023 01:51 AM4 mins to read

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How New Zealand became the centre of the universe for rare space-themed cabins. Video / Thomas Bywater

The accommodation rental giant Airbnb has revealed data on the habits of travellers in New Zealand and overseas, as bookings are expected to exceed pre-pandemic numbers.

However, the “back to basics” approach and paring back of certain products shows the room-sharing economy may not be as buoyant as the numbers predict.

With 300 million guest arrivals projected for the coming year, Airbnb made the triumphalist statement that “the pandemic is over”.

Bed nights in New Zealand grew 40 per cent in 2022, compared with the previous year.

However, the projections for the year ahead are at odds with the current drive for budget listings and Airbnb’s decision to rethink some products.

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Last month it announced it was pausing its “Experiences” programme and would not be taking additional submissions.

Airbnb’s online market for guided tours was launched in 2016, allowing the public to sell cooking classes or other location-based experiences via the website.

“As part of our focus on perfecting the core service, including Airbnb Experiences, we are pausing submissions of all new Experiences,” a spokesperson told the Herald.

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The company said it did not have any more information to share at this point but it was “excited about the future of Experiences” and aimed to relaunch the product at a later date.

Hosts and guides with current bookings will not be affected, but they will not be able to change or submit new experiences for review.

Arthur Chin runs an award-winning Airbnb Experience from his Palmerston North farm. Photo / Supplied
Arthur Chin runs an award-winning Airbnb Experience from his Palmerston North farm. Photo / Supplied

It is not only the inventory of experiences that is being trimmed. Airbnb says it is focusing on more modest booking options for travellers on a budget.

“Airbnb Rooms” is a rebranding of the offering for hosts leasing part of a property or a guest room. Despite the trend for renting whole properties and holiday rentals, the platform sees its immediate future in smaller-scale rentals.

Co-founder and chief executive Brian Chesky says it is about “getting back to the idea that started it all”, making a website for leasing spare rooms in San Francisco.

The rebranded “Rooms” is a play appealing for hosts, facing an increased cost of living, to make additional income and for travellers to find accommodation within their means.

It represents a doubling down on messaging from November, when Chesky claimed that launching during the 2008 recession was the making of the company.

The UFO Futuro house of Ohoka is now an award-winning BnB, let out to guests. Photo / Thomas Bywater
The UFO Futuro house of Ohoka is now an award-winning BnB, let out to guests. Photo / Thomas Bywater

After a focus on exuberant unique listings and flashy promotions featuring New Zealand properties shaped like yellow submarine UFOs, it is a bit of a reality check for travellers and the company.

“Airbnb Plus”, the website’s upscale offering, featuring homes such as castles and luxury housing, had a restructuring after the 2020 crunch. It now exists as a more limited stock of quality-controlled properties.

During the pandemic, the company also shelved ambitious plans to integrate air travel and transport. Hiring travel consultant and former Virgin America chief executive Fred Reid, the company toyed with the idea of an airline in 2018.

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With these lofty goals reined in, it seems the site is best suited to smaller-scale budget trips.

As travel patterns are beginning to show, city breaks are growing in popularity. Private rooms in Sydney and Melbourne are among the most popular on the website and, with eight out of 10 rooms listed for under $150, it’s an affordable way of visiting pricier destinations.

Where Kiwis booked on Airbnb

Top international destinations booked by New Zealanders on Airbnb

1. Kuta Utara, Indonesia

2. Sorrento, Italy

3. South Kuta, Indonesia

4. Nice, France

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5. Split, Croatia

6. Paros, Greece

7. Amsterdam, Netherlands

8. Milos, Greece

9. Ubud, Indonesia

10. Singapore

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Top domestic destinations booked by New Zealanders on Airbnb

1. Porirua

2. Dunedin

3. Lower Hutt

4. Wellington

5. Hastings

6. Hamilton

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7. Auckland

8. Lake Rotoroa, Tasman

9. Kaikōura

10. Christchurch

Trends based on Q1 for 2023 vs Q1 2022. Source: Airbnb


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