Ever been a part of an organized tour? Nope, not my cup of tea either. Photo from Gentleman Marketing Agency.
Airbnb just announced Airbnb City Hosts, and it’s going to disrupt tourism as we know it.
Airbnb sent me an email on Monday to tell me to try Airbnb City Hosts for my upcoming trip to LA. Having lived in LA for more than 8 years, I was surprised to find a handful of interesting experiences available —learn to surf, hang with a street artist — but none that were up my alley.
That said, the launch is an interesting move as Airbnb continues tackle the tourism vertical. With the strategy and marketing around the “Don’t go there. Live There.” campaign, the company’s main challenge will be its transition from offering low-touch services (accommodations) to high-touch experiences (tours).
Looking at Airbnb’s success in accommodations and how the company found product-market-fit, it’s a no brainer that the company is offering experiences — the user lifecycle and use case between accommodations and experiences draws a perfect parallel.
Evolution of travel accommodation — as millennials become HENRYs
Having travelled to more than a dozen countries in the last decade, I’ve stayed mostly in hostels and guesthouses that cost less than a McDonald’s meal in the US. As my disposable income has increased over the years, I’ve began booking accommodations exclusively through Airbnb because:
- Turning 30 also means that sharing a room with a handful of 18 year olds is no longer appealing, and I can certainly afford to spend more.
- But let’s face it, most hotels are still much more expensive than comparable Airbnb’s and I’m not getting that mileage like a consultant.
- Airbnb lets me explore the more authentic side of traveling , though ironic because most Airbnbs are curated to feel authentic. Our generation’s obsession with authenticity has also popularized microbrews, instagram filters, and fixed gear bikes — but I digress.
Airbnb’s ability to enter the tours is contingent on its success in accommodations
And while accommodation has never been a problem in my travels (big shoutout to Hostelworld in 2007), discovering interesting things to do has always been challenging. In both villages and metropolitans, I often find myself roaming the streets and simply exploring with my Lonely Planet guidebooks.
Most results from GoAhead Tours gave me results that are $2,000+, yuck!
It’s during these walks that I find myself signing up for a tour via the 1) hostel front desk, 2) sketchy travel shop in the city, or 3) running into Sandeman’s New Europe groups on the street. Don’t take me wrong, most of these have been adventures in themselves, but similar to accommodation, tourism has traditionally been a fragmented industry — tons of mom-and-pop players, lack of trust, inflexible, and often overpriced.
Over time, traveling has taken on more meaning than simple adventures. Living the life like a local — not an outsider looking in. If there’s anything that I’ve learned from being a PM, it’s that users always want more transparency, more control over choice, and feeling special. Enter Airbnb City Hosts: who is the host, what you’ll be doing (less commitment than 10+ day tour), and how you’ll be taken care of.
Nemesis of experience as a service: trust & safety, consistent quality, and scale
Airbnb City Hosts may not be a runaway hit as it enters beta, but it’s a first step towards an authentic approach to tours and experiences. While the product-market-fit is there for Airbnb’s City Hosts, the challenge is ensuring quality of experience as the service expands (areas where Homejoy had failed).
The problem is simply not as easy as handing over the keys and hiring a cleaning service — it’s making sure that the experiences are fun and unique. Before you know it (give it some time, let’s just say worldwide launch summer of 2017), you’ll also be surfing with a pro in LA for $175 a pop.
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