The CEO of Airbnb wants you to charge less for your house
Eugene Gologursky and Lorenzo Di Cola/NurPhoto
AirbnbCEO Brian Cheskythinks hosts on his platform should lower their prices.
- "We want prices to move and to be more competitive vis-à-vis a hotels—that is really important," said Chesky.
AdvertisementAirbnb CEO Brian
"We want prices to move and to be more competitive vis-à-vis a hotels— that is really important," said Chesky as part of a Monday interview with Bloomberg.
Airbnb's current rate comparison tools for hosts do not incorporate nearby hotel rates. Chesky said he wants hosts "to look at rates for hotels in their area just so they have a sense of what travelers are getting on other platforms."
"We need to get our house in order," said Chesky, who pointed to issues of affordability, not showing customers total prices per listing, and fake listings as things the company would seek to address going forward.
Chesky's comments come amid a mixed year for Airbnb.
Though the company reported its first profitable year in 2022, fears of an "airbnbust" have plagued the company since last year — with hosts complaining of a slowdown in bookings, stiff competition over guests, and falling revenue.
These fears of an "airbnbust" come after a travel frenzy in 2021, which pushed revenue to record highs for hosts and likely contributed to more people listing their homes as rentals.
"We've seen a big uptick in supply, which means that demand is being spread out over more listings, leading to the occupancy decline,"
This coming year could be more competitive for hosts. AirDNA predicted in December that 2023 would see a lower occupancy rate for short-term vacation rentals than 2022.
The firm also predicted that supply is likely to outpace demand for these rentals in 2023, with the number of listings projected to increase by 9% year-on-year.
AdvertisementRepresentatives for Airbnb and Chesky declined to comment to Insider.
Popular on BI
- A Japanese Start-Up Is Testing a Rocket Powered Entirely By Rocket Fuel Created From Cow Dung!
- Amazon sues scammers for stealing millions of dollars via fake returns
- US again vetoes UNSC resolution calling for immediate Gaza ceasefire
- Putin praises Modi for his tough policies; says he is 'main guarantor' of steady Russia-India relationship
- "World recognizes that there's no option but to come to India for a large demand": Piyush Goyal