Airbnb launches redesigned app, new services business

Airbnb launched a redesigned app on Tuesday to showcase the company's push to let travelers book services, like catering and personal training, at their home rentals.

The new-look app marks a new chapter for Airbnb to expand beyond home stays. The company has previously announced plans to invest $200 million to $250 million in a new business that it said it hopes will become a significant driver of future revenue growth.

"We now feel like we have such a strong foundation that we are capable of building and expanding," Dave Stephenson, Airbnb's business chief, told CNBC.

The company has previously tried to push beyond home rentals, but dialed back those efforts in 2020 to focus on its core business as the Covid pandemic shuttered borders and pummeled the travel industry.

Airbnb shares fell earlier this month after the company issued disappointing revenue guidance in its first-quarter earnings report, saying it saw some "softness" in travel from Canada to the U.S. toward the end of the quarter amid macroeconomic uncertainties.

"Until now, our app has really done one thing, which is it lets you book a home," CEO Brian Chesky said on Airbnb's May 1 earnings call. "We rebuilt the app from the ground up on a new technology stack. And now we can innovate faster and offer much more than homes."

The app's new services tab offers 10 categories users can select and book during their rental. The offerings include services such as spa treatments, catered or prepared meals, or personal training sessions. These service offerings will debut in 260 cities worldwide. The company hopes this update will put Airbnb on par with offerings travelers often find at hotels and resorts, Stephenson said.

To ensure quality, Airbnb has added to its vetting team, which includes legal professionals, to assess certifications and licensing requirements, which vary from city to city, Stephenson said. Services vendors have 10 years of experience on average, the company said.

The app update will also include a homepage tab to emphasize Airbnb's experiences business. The new tab divides experiences into 19 categories, including live performances, landmark tours, architecture tours and workouts, which are available in 650 cities. The company first launched experiences in 2016.

The experience tab will include activities and tours designed by Airbnb, called originals, such as a tour of Notre Dame with a restoration architect in Paris. The company is also partnering to offer experiences and services at the 2026 Winter Olympics in Milan, Stephenson said.

Airbnb also said it is updating its social features, allowing users to see other guests attending experiences. The new messages section will also enable photo and video sharing and come with updated privacy features for interacting with co-travelers later this year.