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“Icons take you inside worlds that solely existed in your creativeness – till now,” stated Brian Chesky, Airbnb co-founder and CEO, on the occasion. “As life turns into more and more digital, we’re centered on bringing extra magic into the true world. With Icons, we’ve created essentially the most extraordinary experiences on Earth.”
With a reveal that happened at a highly-produced occasion populated by journalists, influencers and celebrities, it’s not stunning that the corporate’s launch made headlines.
However the chatter didn’t cease there. The launch generated loads of responses from voices throughout the journey trade – some in favor of the corporate’s new limited-access, unconventional experiences that tie into popular culture whereas others are feeling underwhelmed.
“They’re leaning into one in all their perceived strengths – a really actual one – which is that they’ve tremendous distinctive stays within the short-term rental sector and quite a lot of vacationers can see inns as generic, particularly within the upscale stays,” stated Madeline Listing, senior analysis analyst for Phocuswright. “However this can by no means be mainstream. So my query is how are they going to raise the typical keep and deter hosts from organising properties that do not really feel differentiated?”
Some name it an “AMAZING” innovation
Many had been impressed by the STR large’s newest enterprise.
“The Icons program is exclusive and playful; these outlandish stays will generate a lot consideration and seamlessly play into the experiences sector Airbnb has been pushing,” stated Brandreth Canaley, COO at Roami. “It is one of the crucial ingenious advertising and marketing methods we have seen from Airbnb, or some other hospitality supplier.”
And loads of trade heads commented on Airbnb’s transfer on LinkedIn.
Amongst them was Luca De Giglio, founding father of Journeys Group and host of podcast Web3 in Journey. De Giglio, a self-proclaimed Airbnb critic, was blown away by the launch.
“That is AMAZING INNOVATION,” De Giglio wrote. “It is so out of the field considering, that it might create a brand new trade vertical. I am certain numerous persons are already interested by what homes to construct, to recreate film units, or conditions, and possibly even elevate cash to take action.”
Jamie Lane, senior vp of analytics and chief economist at AirDNA, was impressed by the launch – and noticed it as strategic and purposeful.
“Some product releases assist *company* discover fascinating listings (classes) or filter to the proper itemizing (new facilities). Different product releases assist *hosts* record properties extra simply, handle their costs extra effectively, or spotlight particular options,” Lane wrote on LinkedIn. “This newest launch was about constructing their *model.* These kinds of bulletins assist create new incremental demand for the complete trade. Extra individuals obtain the app for the primary time. Extra individuals begin shopping listings … and extra potential company. These kinds of releases assist develop the general pie by bringing short-term leases mainstream. Excited to see what’s subsequent.”
Is Airbnb’s “Icons” a publicity stunt?
Following an occasion that drew a whole bunch of eyes in particular person and undoubtedly many hundreds extra on-line, some had been left questioning if the “Icons” launch was merely for publicity functions.
Hospitality and on-line journey tech marketing consultant and strategist Max Starkov introduced the query to LinkedIn – sharing his personal take: “Icons” is a stunt that gained’t add a lot to Airbnb’s backside line.
As soon as once more, Airbnb goes in circles and operating out of significant concepts that may carry actual development.
Max Starkov, hospitality and on-line journey tech marketing consultant and strategist
Starkov pointed to the constraints on the experiential stays. “How many individuals can keep on the Ferrari Museum? A handful.”
Starkov continued: “As soon as once more, Airbnb goes in circles and operating out of significant concepts that may carry actual development,” he wrote, pointing to a loyalty program for example of one thing that could be worthwhile for the corporate to contemplate.
And Mitch Bach, co-founder and CEO of TripSchool, known as Airbnb “the final word tease” when it comes to its legitimacy as a supplier of experiences.
“At solely 4,000 ‘invites’ to Icons, this launch is only a glorified press launch and one other tease of a future for non-lodging Airbnb merchandise,” Bach wrote. “We within the excursions & actions area stay in an everlasting holding sample of hoping one thing’s really subsequent and nice with Airbnb Experiences.”
Christian Watts, founder and CEO of Magpie Journey, was additionally unimpressed. He in contrast Airbnb’s transfer to the now defunct Zozi, which he stated “began with merchandise like this round 15 years in the past, raised $50m, made a couple of pivots, and fizzled out.”
“Airbnb can be high-quality, but it surely‘s new ‘Icons’ product simply appears like a little bit of buzz,” Watts continued. “It is a disgrace, as a result of pre-COVID, Chesky was speaking about Experiences being the subsequent massive factor. This newest incarnation will not be very Airbnb-like. No host
involvement. No neighborhood. Not very ‘live-like-a-local.’ Perhaps it’s going to evolve? They
have most likely one of the best platform to do one thing modern right here.”
Leaders within the area mentioned the matter additional within the feedback part of Watts’ put up.
Justin Steele, founder and CEO of Native Sauce Excursions, known as Airbnb’s announcement a “actual kick within the tooth” for Airbnb Expertise hosts and Group Leaders.
“We have been offering Airbnb with a lot suggestions on what they should do, however nothing appears to truly transfer senior management to make the required adjustments,” Steele wrote. “One thing is coming to Airbnb Experiences, however by the point it does, they may have misplaced all of the goodwill with current hosts so it appears it is going to be all for naught. Vastly disappointing as their platform CX is so a lot better for each hosts and company than any of the others.”
And Jack Harris, founding father of Tally Ho! Experiences who has hosted on Airbnb Experiences since 2017, weighed in too. He in contrast the “Icons” initiative to its featured “Up” as a result of it’s “quite a lot of scorching air.”
“My take: with out an open API, Experiences will not really take off as there’s an excessive amount of operational drag,” Harris wrote. “Regardless of Airbnb’s status for innovation, their Experiences ‘Insights’ dashboard has been malfunctioning (exhibiting no gross sales/income information) for almost 10 months, leaving us with out correct reviews. We hold it promoting as a result of the income remains to be okay. So will Icons ‘work’? Perhaps operationally, since they appear to be low quantity centered. However I doubt it’s going to influence their financials a lot.”
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Likewise, Peter Syme, strategic journey and tourism advisor, was not enthused: “It’s clearly a PR/Advertising and marketing play to boost consciousness and get some buzz again right into a drifting model. All of us hold anticipating one thing massive and new and scaleable
from Airbnb but it surely by no means appears to come back. Innovation is tough, particularly once you
wish to double or triple the worth of a $98B firm.”
And Stephanie Daniel, co-founder and CEO of PhocusWire Sizzling 25 Journey Startup Legends, sees it each methods.
“The
Icons launch is effectively timed – persons are desperately in search of experiences that
really feel aligned to their pursuits and passions, and we completely agree that there’s
an enormous alternative to ‘translate our digital lives into extra magic in the true
world’ as that’s precisely what we’re doing with Legends TravelDNA
choice profiles to energy extra personalization throughout the trade,” she wrote to PhocusWire in an e-mail. “Nonetheless the launch does really feel considerably buzz centered versus being a
really scalable new providing with broad influence.”
Development in a maturing sector?
Starkov additionally referenced Airbnb’s development over the corporate’s life. Since its founding, he wrote, Airbnb has loved what he known as “unbridled development,” noting that even the pandemic – which primarily shut nearly all of the journey trade down – benefited the corporate.
However that’s come because of Airbnb’s occupation of the STR area in its nascent type.
“Sadly for Airbnb, the short-term rental trade is maturing,” wrote Starkov. “Different STR gamers like Vrbo and Reserving are worthy rivals, so are skilled trip rental administration firms like Vacasa and Evolve. On high of that revenge journey is coming to an finish. Add to all of that the continued residential housing shortages and tremendous excessive mortgage charges, which implies restricted stock coming into the market.”
