Airbnb Promotes ‘Rooms’ Rentals for Cost-Conscious Vacationers

While people still want to travel, they may not want to pay to rent an entire house.

That’s the thinking behind Airbnb’s new “Rooms” program, announced Wednesday (May 3) as a more affordable new take on the company’s original offering.

“Airbnb began as a way to stay in a room in someone else’s home,” the vacation rental platform wrote in a blog entry.

“This original idea of sharing a home offers two unique benefits. First, it’s more affordable for guests. More than 80 percent of private rooms are under $100/night, with an average rate of $67/night.”

In addition, the company argues, staying with a host lets guests meet someone new and “experience the city like a local.”

However, Airbnb acknowledges that for people to embrace the idea, they need to feel comfortable with their host, which is why the program includes a “Host Passport” that lets guests get to know the host before their trip.

“With Airbnb Rooms, we’re getting back to the idea that started it all — back to our founding ethos of sharing,” said Brian Chesky, the company’s co-founder and CEO. “Airbnb Rooms are often more affordable than hotels, and they’re the most authentic way to experience a city. This is the soul of Airbnb.”

Airbnb’s attempt to entice cost-conscious travelers comes at a time when many consumers are considering forgoing travel this year, according to recent PYMNTS research.

The January PYMNTS collaboration with LendingClub, “New Reality Check: The Paycheck-to-Paycheck Report,” found that 58% of consumers said they are unlikely to purchase travel during this year, including 9% who had paid money to travel in 2022.

“This dimming outlook on travel is coming as a blow to the airline industry, which has so far maintained optimism toward 2023 despite this past season’s air travel chaos,” PYMNTS wrote. “Betting on the same post-pandemic wave propelling travel in 2022, ticket prices have been climbing as much as 40% year over year.”

Meanwhile, Airbnb’s hosts are also feeling economic pressure, PYMNTS reported in March upon news that the hosts were using the service to help cope with the increasing cost of living.

The company reported that 62% of hosts in the United States plan to use their earnings to cover the higher cost of living, with 44% using it to cover the cost of groceries and other needs, and 42% saying it had helped them stay in their home.

The firm also found that more than three-quarters of the hosts share just one home and that the median amount of earnings for U.S. hosts last year was $14,000.