Airbnb to Expand Into Hotels as CEO Sees Future in Hybrid Travel Offerings

Airbnb, the home-sharing platform once celebrated for disrupting the traditional hospitality industry, is now positioning itself to directly compete with the very sector it once sought to challenge. CEO Brian Chesky announced during the company’s second-quarter earnings call that hotels would play a central role in Airbnb’s future growth strategy, signaling a shift in the company’s long-standing identity [1].

The Q2 earnings report was largely positive, with revenue hitting $3.1 billion—a 13% year-over-year increase—alongside adjusted earnings of $1.03 per share and net income of $642 million [1]. The company recorded 134 million “nights and experiences,” a 7% rise from the previous year. Growth remained robust in Latin America and the Asia Pacific, though North America’s performance slowed slightly. Investors, however, appeared unconvinced by the company’s guidance for the second half of 2025, which anticipates slower revenue and tighter margins due to tough comparisons and increased investment in technology and regulatory compliance [1]. Following the call, Airbnb’s stock dropped over 6%, with further declines observed since the earnings were announced [1].

Chesky acknowledged key challenges, including increased competition from hotels and regulatory pressures on short-term rentals. Yet, rather than avoiding these headwinds, he outlined a plan to confront them directly by expanding into hotel listings. Independent and boutique hotels, particularly outside North America, were identified as a strategic focus. “We’re going to be going significantly more aggressively into hotels,” Chesky stated [1]. The move aims to address gaps in availability and customer preference, particularly during peak travel periods in cities where home listings are scarce [1].

This strategy aligns with Airbnb’s broader vision of expanding “beyond the core,” a framework that integrates hotels while preserving its signature homes product. “It’s an ‘and, not a or’ strategy,” Chesky emphasized. The company has already demonstrated its openness to acquisitions, citing the success of its HotelTonight app as a precedent. The CEO highlighted that Airbnb is now in a stronger position to evaluate and pursue similar opportunities [1].

The shift also reflects evolving consumer behavior. While many users browse home listings, they often book hotels due to perceived convenience or availability. By adding hotels to its platform, Airbnb not only meets this demand but also strengthens its position as a one-stop shop for travel. The platform’s potential as an “AI-first application” further underscores this ambition. Chesky described the company’s AI-powered customer service agent, which uses 13 specialized models to reduce human intervention by 15% and enhance personalization. The goal is to eventually create a fully autonomous agent capable of managing reservations, planning trips, and offering real-time assistance [1].

Chesky envisions Airbnb transforming into a comprehensive “everything app” for travel and experiences, with deeper AI integration enabling expanded language support and broader functionality. “We’re starting with customer service. We’re bringing it into travel planning,” he explained [1]. The CEO also emphasized that Airbnb aims to remain a unique and innovative platform, not a generic booking tool. “I don’t think we’re going to be the kind of thing where you just have an agent or operator book your Airbnb for you because we’re not a commodity,” he noted [1].

The company’s strategy is not just about diversifying offerings but also about redefining how people experience travel. By embracing hotels and leveraging AI, Airbnb is attempting to reconcile its original mission with the realities of a competitive and evolving market. While the move may seem paradoxical to some, it reflects a broader acknowledgment that consumers want flexibility and choice, regardless of the format. Whether this strategy will translate into sustained growth remains to be seen, but it is clear that Airbnb is determined to remain at the forefront of the travel innovation landscape.

Source: [1] Airbnbe embraces a paradox: CEO Brian Chesky says hotels are the future. (https://fortune.com/2025/08/08/airbnb-earnings-shares-fall-ai-driven-application-brian-chesky/)