WEBVTT - Airbnb CEO Brian Chesky Talks Olympics Affecting Demand 0:00:02.600 --> 0:00:06.960 Bloomberg Audio Studios, podcasts, radio news. 0:00:08.160 --> 0:00:11.240 All Right, the twenty twenty four Summer Olympics in Paris 0:00:11.320 --> 0:00:14.320 kicks off today with the opening ceremonies happening in about 0:00:14.360 --> 0:00:17.200 three hours time now. The city has seen a surge 0:00:17.280 --> 0:00:21.120 in short term rental listings since last summer, thanks of course, 0:00:21.120 --> 0:00:22.920 in part of the games. Let's take a look at 0:00:22.920 --> 0:00:26.560 lodging demand now with Airbnb CEO Brian Chesky, who is 0:00:26.600 --> 0:00:30.400 there on the ground in Paris alongside Caroline Kno from 0:00:30.720 --> 0:00:33.440 Bloomberg as well. And Brian, let's kick off here with 0:00:33.479 --> 0:00:36.239 the fact that you have fifteen million visitors expected to 0:00:36.280 --> 0:00:39.640 be in Paris during the Games. Obviously Airbnb has a 0:00:39.640 --> 0:00:44.000 big presence there as well. What approximately would you expect 0:00:44.040 --> 0:00:46.559 the impact on your third quarter revenues to be from 0:00:46.640 --> 0:00:47.120 this event? 0:00:47.680 --> 0:00:49.120 Well, I mean, the first thing I'll just say is 0:00:49.159 --> 0:00:53.000 this is the biggest single hosting event in the history 0:00:53.000 --> 0:00:55.960 of Airbnb. We have the number of people staying in 0:00:55.960 --> 0:00:59.200 the Airbnb here in Paris to fill the Olympic Stadium 0:00:59.680 --> 0:01:02.760 five times over, and they're spending over a billion dollars 0:01:02.760 --> 0:01:05.480 when they're here in Paris. So we're seeing really good 0:01:05.480 --> 0:01:07.600 demand this summer I think Q three is going to 0:01:07.600 --> 0:01:11.240 be quite strong, and I think this event, the Olympics 0:01:11.360 --> 0:01:13.480 is just the ultimate demonstration of the power of bear 0:01:13.480 --> 0:01:16.960 abnb because these hundreds of thousands of people, many of 0:01:17.000 --> 0:01:18.959 them wouldn't have been able to come here and certainly 0:01:18.959 --> 0:01:21.039 wouldn't have been able ford to stay here had it 0:01:21.080 --> 0:01:23.560 not been for the one hundred and fifty thousand homes 0:01:23.720 --> 0:01:25.679 we have here in Paris. And I should just remind 0:01:25.720 --> 0:01:29.160 everyone everybody started for events because in large events there's 0:01:29.200 --> 0:01:32.040 only so many hotels, and so either you add access 0:01:32.040 --> 0:01:33.839 capacity or people don't come. 0:01:35.360 --> 0:01:38.360 One hundred and fifty thousand rooms on the market, that's 0:01:38.400 --> 0:01:42.240 about double at least that's what we have usually in 0:01:42.280 --> 0:01:46.200 Paris for Airbnb. Do you think hosts are actually gaining 0:01:46.319 --> 0:01:48.320 from this, because a year ago I remember one of 0:01:48.320 --> 0:01:50.240 my friends saying I'm going to put my fat on 0:01:50.360 --> 0:01:53.360 Airbnb during the Olympics and make huge money. But it 0:01:53.360 --> 0:01:56.400 seems like the rates are not that high, not as 0:01:56.520 --> 0:01:57.520 high as expected. 0:01:58.240 --> 0:02:00.440 Well, on the average host here in Paris is making 0:02:00.440 --> 0:02:05.560 about two thousand, two hundred dollars on Airbnb during the Olympics, 0:02:05.560 --> 0:02:07.920 so that is I see very very meaningful income for them. 0:02:08.240 --> 0:02:11.239 Many of them are first time hosts, so forty percent 0:02:11.280 --> 0:02:14.080 more listings we have today from the beginning of the year. 0:02:14.440 --> 0:02:17.040 So this is very I think meaningful income for people. 0:02:17.520 --> 0:02:20.480 But I'm also proud that the rates are somewhat moderated. 0:02:20.520 --> 0:02:22.119 You know, we really wanted to make sure we work 0:02:22.160 --> 0:02:23.720 with the IOC, and one of the big concerns they 0:02:23.800 --> 0:02:26.720 had was that the Olympic Games would become unaffordable. So 0:02:26.760 --> 0:02:28.240 I think the flip side of that is, I think 0:02:28.280 --> 0:02:30.400 the games are much more affordable for people, and they 0:02:30.440 --> 0:02:31.720 would have been otherwise. 0:02:31.720 --> 0:02:35.000 Because especially for the luxury side of things. For example, 0:02:35.040 --> 0:02:37.440 for luxury hotel, it seems like rates are done about 0:02:37.440 --> 0:02:40.919 forty percent from their peak about eleven months before the game. 0:02:41.000 --> 0:02:44.119 Is that also what you've been seeing with Airbnb perhaps 0:02:45.000 --> 0:02:47.679 lowing their rates as we approach the Olympics in order 0:02:47.720 --> 0:02:51.200 to feel the rooms and to increase the occupancy rate. 0:02:51.240 --> 0:02:53.919 I mean, we had a lot of bookings, like many 0:02:53.919 --> 0:02:56.760 many months ago, and so we've continued to see bookings. 0:02:56.800 --> 0:02:58.560 I Mean, the thing that's really interesting we have a 0:02:58.600 --> 0:03:02.320 really longly time bookings, but we're still getting like thousands 0:03:02.360 --> 0:03:05.760 of people booking every single day, last minute, even during 0:03:05.800 --> 0:03:08.680 the games. For the coming days. So I think the 0:03:08.760 --> 0:03:10.919 demand has been very, very solid on Airbnb. 0:03:11.639 --> 0:03:14.880 Right here we are in the clubroom of this iconic 0:03:15.040 --> 0:03:17.720 music or set, which used to be a train station. 0:03:18.240 --> 0:03:21.919 It actually was inaugurated in nineteen hundred for one of 0:03:21.919 --> 0:03:25.880 the last Olympics in Paris and also for the international exhibition. 0:03:26.040 --> 0:03:30.360 You're offering two fans to stay here tonight, Yes, for free, 0:03:30.400 --> 0:03:33.079 for free. That's part of airbab icons. Can you tell 0:03:33.160 --> 0:03:36.000 us what it is how you selected those two people 0:03:36.000 --> 0:03:37.000 who are staying here tonight. 0:03:37.080 --> 0:03:37.240 Yeah. 0:03:37.280 --> 0:03:42.160 So icons are the most extraordinary experiences in the world 0:03:42.160 --> 0:03:46.480 from the world's biggest icons, both people and iconic places. 0:03:46.560 --> 0:03:48.280 And one of the most iconic places in the world, 0:03:48.600 --> 0:03:50.880 certainly here in Paris is this museum. As you said, 0:03:50.880 --> 0:03:53.640 it was a clock character became a museum the ultimate, 0:03:53.720 --> 0:03:56.240 and I think like creativity. To get to this room, 0:03:56.280 --> 0:03:57.920 I had to walk through room a van goes and 0:03:57.960 --> 0:04:02.400 renoirs and monaise. Behind me is this clock tower and 0:04:02.480 --> 0:04:05.160 millions of people or thousands of people take photos of 0:04:05.200 --> 0:04:07.120 this clock tower. And we thought, what if you could 0:04:07.160 --> 0:04:09.720 stay here? And so we got the designer of the 0:04:09.720 --> 0:04:11.920 Olympic torch, which is right next to me and he 0:04:12.120 --> 0:04:15.000 designed this room in every single object in this room, 0:04:15.280 --> 0:04:17.760 and we picked a couple. It was a totally free stay. 0:04:17.800 --> 0:04:19.960 So you can imagine when something like this is free, 0:04:19.960 --> 0:04:23.239 it's a truly once in a lifetime experience. Thousands thousands people apply, 0:04:23.839 --> 0:04:26.760 We look through all the applications. We picked two lucky winners, 0:04:26.760 --> 0:04:28.960 a couple from California, and they're gonna stay here tonight. 0:04:29.720 --> 0:04:31.600 And by the way, I just want to things also say, 0:04:31.680 --> 0:04:35.480 is when you behind me, is this clock tower. If 0:04:35.520 --> 0:04:38.719 you look down, that's the sin where the opening games are. 0:04:38.880 --> 0:04:40.919 If you go into the terrace, you will have quite 0:04:40.960 --> 0:04:43.440 literally probably the best seat in the house for the 0:04:43.480 --> 0:04:45.400 opening games just in a few hours, the. 0:04:45.400 --> 0:04:47.840 Opening ceremony, which is actually taking place in the three 0:04:47.880 --> 0:04:51.120 hours three hours. Yes, we're going to be here. From 0:04:51.360 --> 0:04:54.640 the music as part of these Albnb icons. Obviously this 0:04:54.680 --> 0:04:57.479 is only a couple saying here. Bet, this is a 0:04:57.560 --> 0:05:00.159 whole thing. You launched in May. You got a the 0:05:00.160 --> 0:05:05.000 Barbie dream? Has you get The Prince mentioned what's the 0:05:05.080 --> 0:05:08.280 strategy here in terms of gaining some new sign ups 0:05:08.440 --> 0:05:11.720 for Airbnb at a time perhaps when your gross is 0:05:11.720 --> 0:05:12.680 a little slowing down. 0:05:13.080 --> 0:05:15.320 Well, I think that the growth first of all, is very, 0:05:15.440 --> 0:05:17.400 very strong, and I expect a huge amount of growth 0:05:17.440 --> 0:05:18.800 in the coming years to come. But let me just 0:05:18.800 --> 0:05:22.040 start with icons. We think icons initially is a great 0:05:22.040 --> 0:05:25.320 way to keep air the top of mind, reach new audiences, 0:05:25.560 --> 0:05:28.800 and also let people know that Airbnb is much more 0:05:28.839 --> 0:05:31.440 than a place to stay. It's about an experience, and 0:05:31.600 --> 0:05:33.960 ultimately where we're going as a company is it means 0:05:33.960 --> 0:05:36.640 can be much more than just about accommodations. I think 0:05:36.680 --> 0:05:40.440 the ultimate Airbnbs are experiences, and we're going much deeper 0:05:40.440 --> 0:05:43.760 into experiences. So right now these are more promotions. But 0:05:43.800 --> 0:05:45.159 one of the things we want to do is figure 0:05:45.160 --> 0:05:47.240 out how can we take the magic of icons and 0:05:47.240 --> 0:05:49.159 bring it to millions of people. And I hope this 0:05:49.279 --> 0:05:51.159 magic that you feel in this room is something that 0:05:51.160 --> 0:05:52.679 people bell experience around the world. 0:05:53.400 --> 0:05:57.080 Obviously, there's been some resistance in some other places that Airbnb, 0:05:57.160 --> 0:06:01.480 for example Barcelona in Europe recently we saw some protests. 0:06:01.480 --> 0:06:07.080 There's also discussions about perhaps banning Airbnb all together. From 0:06:07.080 --> 0:06:11.120 twenty to twenty nine forties some of those apartments in Barcelona. 0:06:11.360 --> 0:06:12.440 What's your reaction to this. 0:06:12.839 --> 0:06:15.719 My reaction is that we ultimately want to make cities stronger, 0:06:16.000 --> 0:06:18.880 you know, I think we provide economic impact. The vast 0:06:18.880 --> 0:06:23.640 majority of host on Airbnb are regular people making supplemental income. 0:06:24.720 --> 0:06:27.280 The city becomes more accessible people. We try to make 0:06:27.320 --> 0:06:30.719 sure people are distributed throughout different neighborhoods, but ultimately we 0:06:30.760 --> 0:06:32.760 want to be wanted in this city. We're in one 0:06:32.880 --> 0:06:35.919 hundred thousand cities and towns all over the world, and 0:06:35.960 --> 0:06:38.400 so cities have a right to choose how they want 0:06:38.440 --> 0:06:41.720 airpmum to exist in their market. I think throughout these 0:06:41.760 --> 0:06:44.599 one hundred thousand communities, you see that the cities that 0:06:44.640 --> 0:06:47.919 embrace Airbnb, I think thrive the most, and the cities 0:06:47.960 --> 0:06:50.400 that don't embrace thereby, like New York, which airby is 0:06:50.400 --> 0:06:53.240 no longer in for a short term basis, housing prices 0:06:53.279 --> 0:06:55.520 are not down, the hotel prices are up. So I 0:06:55.520 --> 0:06:58.000 think we've run this experiment. I think the cities like 0:06:58.080 --> 0:07:01.440 Paris that embrace a or ones that thrive the most. 0:07:02.040 --> 0:07:06.160 Airbnb has taken a diplomatic approach to regulation, New York 0:07:06.240 --> 0:07:09.240 City being an exception, as you just mentioned, and you 0:07:09.360 --> 0:07:14.880 recently invested more resources into access to our British access 0:07:14.880 --> 0:07:17.840 to home ownership is at some kind of admission that 0:07:18.040 --> 0:07:22.120 Airbnb is pricing out some people out of certain neighborhoods. 0:07:22.200 --> 0:07:25.200 I think it's so complicated it really I hate to 0:07:25.200 --> 0:07:29.520 make a generalization. I started Airbnb, my co founder, because 0:07:29.560 --> 0:07:32.840 one weekend we couldn't afford to pay rent millions of hosts. 0:07:32.880 --> 0:07:35.360 We have five million host on Airbnb. So many of 0:07:35.360 --> 0:07:38.360 them tell us that they use the money on Airbnb 0:07:38.400 --> 0:07:39.920 to be able to pay their rent, to be able 0:07:39.920 --> 0:07:42.200 to pay their mortgage. That being said, I don't want 0:07:42.200 --> 0:07:44.040 to be one of those tech founders that just defends 0:07:44.080 --> 0:07:46.400 the business and says everything we do is good all 0:07:46.440 --> 0:07:49.040 the time. If you build a platform and one hundreds 0:07:49.040 --> 0:07:51.000 of millions people use their platform, it's going to be 0:07:51.040 --> 0:07:54.280 used for unattended consequences. For most of our platforms, most 0:07:54.320 --> 0:07:56.760 of us believe the vast majority of things happening is good. 0:07:57.080 --> 0:07:58.960 But if we believe everything is good, then we're being 0:07:59.080 --> 0:08:03.520 naive then. But the same point, it's important that people 0:08:03.600 --> 0:08:07.080 understand the majority of people are regular people renting their 0:08:07.120 --> 0:08:09.720 home they live in or their second home, and they're 0:08:09.760 --> 0:08:11.800 hosting guests from around the world, many of which would 0:08:11.800 --> 0:08:14.680 have never been able to travel and stay in that city. Ultimately, 0:08:14.720 --> 0:08:16.600 I think that's a very important thing for the world. 0:08:17.120 --> 0:08:18.880 And Brian, before we let you go, we have to 0:08:18.920 --> 0:08:21.600 ask about us politics, because of course we're three and 0:08:21.600 --> 0:08:24.600 a half months away from the November election. We've seen 0:08:24.640 --> 0:08:27.520 a lot of tech founders in particular come out in 0:08:27.600 --> 0:08:30.720 support of the Republican Party, and I'm wondering from where 0:08:30.760 --> 0:08:33.640 you stand. Have you thrown your support behind either candidate 0:08:33.640 --> 0:08:34.199 at this point. 0:08:36.679 --> 0:08:39.319 No, I'm not, and I'm certainly not going to wait 0:08:39.360 --> 0:08:41.120 into that this time. You know. I think it's really 0:08:41.120 --> 0:08:43.840 important for me to focus the narrative and our tension 0:08:43.840 --> 0:08:46.240 of Airbnb on what we can do for one hundreds 0:08:46.240 --> 0:08:48.960 of thousand people in Paris, and that's what I'm focused on, all. 0:08:48.920 --> 0:08:52.240 Right, Brian, really appreciate the time there. That is Airbnb 0:08:52.360 --> 0:08:56.920 CEO Brian Chesky, and of course Bloomberg's Caroline Cono in Paris.