Airbnb is taking a bold step beyond home rentals with its latest product: a services-focused app aimed at helping travelers book everything from guided tours to in-home chefs. However, early reactions haven’t been kind. Critics have panned the app as a “half-baked” idea and questioned whether the platform can compete with existing giants in the experience economy.
But for CEO Brian Chesky, the criticism might be the best news possible.
As mentioned by Millionaire MNL, Airbnb’s pivot toward services is less about immediate wins and more about future-proofing its business. The company is doubling down on its mission to become a full-fledged travel ecosystem, a strategy that historically drew skepticism — until it didn’t.
Critics call it a weak move. They said that about homes, too.
Airbnb’s new app has faced early backlash from industry analysts and travel bloggers. Common criticisms include clunky UX, limited service offerings at launch, and skepticism about whether Airbnb can compete with entrenched players like Viator and GetYourGuide.
But this isn’t the first time Chesky has heard this. When Airbnb launched, the idea of staying in a stranger’s home was met with mockery and doubt. Fast forward to today: Airbnb reported over $9.9 billion in revenue in 2024, making it one of the most disruptive forces in hospitality.
In that context, the backlash might signal that Airbnb is once again stepping into a space ripe for reimagination.
The real win is engagement, not services
For Chesky, the success of the new app isn’t about dominating tours or activity bookings overnight. It’s about keeping users in the Airbnb ecosystem longer. More time in the app means more upsell opportunities, more data on traveler preferences, and more reasons to choose Airbnb over traditional hotel chains.
“This isn’t just about selling you a walking tour,” an Airbnb spokesperson said. “It’s about enhancing the trip you’re already planning with us.”
By embedding services into the post-booking journey, Airbnb strengthens its brand as an end-to-end travel companion rather than a transactional lodging site.
Investors should be watching stickiness, not margins (yet)
Wall Street may fret over the app’s lack of immediate revenue impact, but long-term investors will likely appreciate the strategic play. The services push aligns with a larger trend in tech: increasing lifetime customer value (LTV) through ecosystem expansion.
As seen in Millionaire MNL, Apple’s shift to services transformed its financial profile. Similarly, Airbnb’s move is less about copying tour platforms and more about adding layers of monetization without increasing customer acquisition costs.
In a travel market facing economic uncertainty, diversified revenue streams are crucial.
A Chesky playbook move: Start messy, iterate fast
Chesky is known for launching imperfect versions of ambitious ideas, then refining them with real-world feedback. The original Airbnb website was a scrappy design job. The “Experiences” product, first launched in 2016, faced similar skepticism before becoming a $500M+ annual business segment.
Criticism might sting, but for Chesky, it’s also data.
By shipping early, Airbnb gets to learn fast — directly from users. In startup culture, this is called the “build-measure-learn” loop, and it’s a strategy Chesky has mastered.
Bottom line: The critics are doing Airbnb a favor
While the new services app stumbles out of the gate, its potential to deepen user engagement, enhance brand loyalty, and eventually unlock new revenue channels makes it a strategic win.
For Chesky, the early criticism is proof the idea is ambitious enough to matter.
