🤭 Airbnb Is Making Big Changes (Called It)

This is The Level Ups. Modern business news for the future business leader (in plain-Jane English).

Today:

• Airbnb seems to have given in to the pressure.

• The changes

• Will it make a difference?

Let’s get into it.

Estimated Reading Time: 2 minutes & 20 seconds.

Airbnb’s Making Changes:

Airbnb put itself on the same trajectory as Blockbuster (bankruptcy).

Why? All the stupid search functions, chores, and hidden fees left people wondering, “wtf?”

I covered this a little over a month ago. Dare say I called it.

If I were wrong, they wouldn’t have completely reversed pretty much everything I mentioned. People have been complaining about all this for months.

You’d think a company like Airbnb would have done something sooner, but better late than never.

These are straight from the mouth of Airbnb CEO, Brian Chesky:

1. "Starting next month, you'll be able to see the total price you're paying up front."

2. "We are prioritizing total price (instead of nightly price) in our search ranking algorithm. The highest quality homes with the best total prices will rank higher in search results."

3. "To enable Hosts to set more competitive prices, we'll be launching new pricing and discount tools. Hosts told us they'd like our help to better understand the final price guests pay and what price to charge to stay competitive."

4. "You shouldn't have to do unreasonable checkout tasks, such as stripping the beds, doing the laundry, or vacuuming. But we think it's reasonable to turn off the lights, throw food in the trash, and lock the doors--just as you would when leaving your own home. If Hosts have checkout requests, they should be reasonable and shown to you before you book."

What a shocker, people paying to stay somewhere shouldn’t have to do chores WHILE PAYING A CLEANING FEE.

Here’s the summary because Brian talks a lot:

• See the total price upfront.

• Prioritizing the total price in the algorithm.

• New pricing tools for hosts in 2023 and beyond.

• See the checkout instructions prior to booking.

Don’t like chores? See them upfront and say “f that,” and pick someone else.

Someone’s People Just Need To Feel Like You Heard Them:

I don’t often speculate on strategy, but it’s becoming clear how Airbnb is trying to get ahead in a very competitive travel industry.

It goes like this:

Let the problems get so bad everyone complains and then make a spectacle of how you’ve “listened” and “heard what everyone’s had to say.”

This is called making the most of “better late than ever.” Enjoy the benefits of price gouging and then act like you’re a saint for making changes even if they’re late.

Milking the virtue of listening follows the cost of making people suffer until they feel the need to be heard.

In this case, it was a benefit. How do I know? Because Airbnb posted record Q3 revenues.

Looks like it’s working.

Sometimes, Other People’s Customers Need to Feel Heard:

In the summer, Airbnb provided something unheard of in the travel industry: guaranteed protection on your bookings.

Following the pandemic, travel bookings had issues like cancelled flights and brutal fights to get your money back.

That move is another example of taking the pain away. Sometimes they create the pain (probably not on purpose), and other times they take away the pain brought on by hotels.

It’s smart. Painkillers sell more than vitamins, after all.

Will It Make a Difference?

At the least Airbnb can expect fewer customer complaints.

But there’s also the possibility that making their customers feel heard will have greater benefits. Brand loyalty is an elusive concept, and taking the pain away is undoubtedly one way to build it.

Time will tell, but I expect Airbnb to continue posting record revenues. The cleaning feels they’re losing out on will matter much in the big picture if customers are truly happy and excited to book with Airbnb.

With these changes, it looks like it’s going in the right direction.

Thanks for reading!

Darwin