Airbnb Inc. is making a bet that it can attract more guests to its platform if it offers better information about how other travelers responded to a home they booked.
The vacation-home-rental platform, which recently said it was seeing volatility in fourth-quarter bookings, is revamping its ratings and reviews with a redesigned page and new features aimed at helping guests fully understand the quality of each room in a home. The idea is to avert the situation when a guest is shocked that a home looks nothing like the listing pictures.
“People often describe checking into an Airbnb as a ‘moment of truth’ — when you find out if the home you booked meets your expectations,” Brian Chesky, Airbnb co-founder and CEO, said in a statement. “Too often, it doesn’t. We’re changing that today. With Guest Favorites, revamped reviews, and the new Listings tab, you’ll now know exactly what to expect every time you book.”
The guest favorites tab will be a collection of the 2 million most-loved homes on the platform, using data from over half a billion trips, Chesky said. The revamped ratings will allow guests to sort reviews by recency or rating, with a chart offering reviews from one to five stars.
Reviews will also include more information about the reviewer and the trip they made, including details such as length of stay, where they are from and whether they traveled with family members and pets or as part of a group.
The listings tab will make it easier for hosts to outline amenities and to create a photo tour.
“Hosts can connect compatible smart locks to their Airbnb account and automatically generate a unique code for every reservation,” Chesky said.
That feature will be rolled out in the U.S. and Canada starting later this year.
Airbnb’s stock
ABNB,
fell 3.7% Wednesday and is down 16% in the last three months.
The company’s third-quarter earnings last week were better than expected, and it said it had been a “record summer travel season.”
But the outlook for the fourth quarter is cloudy, not least because current geopolitical conflicts are expected to discourage travel.
“We currently expect our nights booked growth in [fourth quarter] 2023 to moderate relative to [third quarter] 2023,” the company said in its letter to shareholders.
Airbnb has gained 37% in the year to date, while the S&P 500
SPX
has gained 14%.
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