1 00:00:00,160 --> 00:00:03,720 Speaker 1: We welcome our Bloomberg Radio listeners and TV audience worldwide. 2 00:00:03,720 --> 00:00:07,360 Speaker 1: Airbnb is unveiling new features and AI powered tools for 3 00:00:07,480 --> 00:00:10,800 Speaker 1: its app and a push to increase reliability. As part 4 00:00:10,840 --> 00:00:13,840 Speaker 1: of the new features, listings rated above four point nine 5 00:00:13,880 --> 00:00:17,400 Speaker 1: stars with less than one percent cancelations from hosts will 6 00:00:17,400 --> 00:00:20,720 Speaker 1: get a new guest Favorite label. Two million out of 7 00:00:20,760 --> 00:00:23,640 Speaker 1: the more than seven million homes on the Airbnb platform 8 00:00:23,840 --> 00:00:27,960 Speaker 1: qualify for that label. Let's bring in airbnbco Brian Chesky 9 00:00:28,120 --> 00:00:30,560 Speaker 1: and our very own Emily Chang take it away. 10 00:00:30,600 --> 00:00:32,240 Speaker 2: I am thank. 11 00:00:32,000 --> 00:00:34,640 Speaker 3: You Eden, Thank you Brian as always for joining us. Look, 12 00:00:34,960 --> 00:00:37,000 Speaker 3: we can count on you now to sort of up 13 00:00:37,000 --> 00:00:39,040 Speaker 3: the anny with these new product features a couple of 14 00:00:39,080 --> 00:00:41,600 Speaker 3: times a year. And as a guest, I'm excited about 15 00:00:41,640 --> 00:00:43,640 Speaker 3: guest Favorites, but at the end of the day, it's 16 00:00:43,680 --> 00:00:47,199 Speaker 3: about driving new business. How many new additional bookings do 17 00:00:47,240 --> 00:00:49,440 Speaker 3: you think these new features can unlock? 18 00:00:49,800 --> 00:00:51,000 Speaker 4: I mean, I think this is going to be a 19 00:00:51,040 --> 00:00:53,640 Speaker 4: really big growth driver for us, Emily. And the reason 20 00:00:53,680 --> 00:00:57,520 Speaker 4: why is the number one reason people like Airbnb is 21 00:00:57,520 --> 00:00:59,040 Speaker 4: because the homes are unique. 22 00:00:59,240 --> 00:01:01,840 Speaker 5: Every home is the biggest problem. 23 00:01:01,480 --> 00:01:03,760 Speaker 4: With Airbnb, and there we're in recent People book hotels, 24 00:01:03,840 --> 00:01:05,759 Speaker 4: is you know what you're going to get, And we asked, 25 00:01:05,760 --> 00:01:08,000 Speaker 4: what if we can combine the best of both. What 26 00:01:08,080 --> 00:01:10,080 Speaker 4: if you can have the uniqueness of Airbnb with a 27 00:01:10,160 --> 00:01:11,840 Speaker 4: reliability you expect from a hotel. 28 00:01:12,040 --> 00:01:14,680 Speaker 5: And that's what guest favorites are. But it's not our word. 29 00:01:14,840 --> 00:01:17,080 Speaker 4: It's our guest word because we took three hundred and 30 00:01:17,080 --> 00:01:20,160 Speaker 4: seventy million reviews and millions of customer service contacts and 31 00:01:20,240 --> 00:01:22,480 Speaker 4: we created this collection of two million homes. I think 32 00:01:22,480 --> 00:01:24,640 Speaker 4: this is going to bring a whole new audience to Airbnb. 33 00:01:25,840 --> 00:01:27,680 Speaker 3: There was a lot of focus on your outlook last 34 00:01:27,720 --> 00:01:30,679 Speaker 3: week when you reported results. You talked about macroeconomic trends. 35 00:01:30,720 --> 00:01:33,240 Speaker 3: You said there's volatility. You said bookings could moderate, and 36 00:01:33,280 --> 00:01:35,680 Speaker 3: that you're already seeing signs from that in this quarter. 37 00:01:35,720 --> 00:01:37,199 Speaker 5: Can you tell us a little more. 38 00:01:37,120 --> 00:01:40,200 Speaker 3: About this volatility, where is it coming from, how dramatic 39 00:01:40,360 --> 00:01:42,200 Speaker 3: is it, and how big is the impact going to be? 40 00:01:43,000 --> 00:01:46,000 Speaker 4: Well, mostly what we were doing is we were just 41 00:01:46,040 --> 00:01:48,200 Speaker 4: a few weeks under the quarter and we were seeing 42 00:01:48,280 --> 00:01:50,920 Speaker 4: a lot of geopolitical uncertainty, so we just wanted to 43 00:01:50,960 --> 00:01:53,920 Speaker 4: be cautious. At the same time, we feel like our 44 00:01:53,960 --> 00:01:57,360 Speaker 4: business is extremely resilient. We've done four point two billion 45 00:01:57,360 --> 00:01:59,960 Speaker 4: dollars in free cash flow this year trailing twelve months. 46 00:02:00,240 --> 00:02:02,640 Speaker 4: That is a forty four percent free cashual margin. Our 47 00:02:02,640 --> 00:02:05,720 Speaker 4: revenue group eighteen percent year of a year. So we're 48 00:02:05,720 --> 00:02:08,400 Speaker 4: feeling really good at this very moment. We just wanted 49 00:02:08,400 --> 00:02:11,480 Speaker 4: to exercise a little bit of caution just given what 50 00:02:11,520 --> 00:02:12,360 Speaker 4: was happening in the world. 51 00:02:13,240 --> 00:02:16,720 Speaker 3: So you've said Airbnb is now ready to expand beyond 52 00:02:16,840 --> 00:02:19,320 Speaker 3: its core, Can you give us a tease where is 53 00:02:19,360 --> 00:02:23,440 Speaker 3: that next level of growth and monetization going to come from? 54 00:02:23,600 --> 00:02:24,760 Speaker 5: I think it's a few areas. 55 00:02:24,800 --> 00:02:27,119 Speaker 4: I mean, let me first say, I think we've only 56 00:02:27,160 --> 00:02:30,040 Speaker 4: scratched a surface of how big our core business of 57 00:02:30,120 --> 00:02:31,840 Speaker 4: booking homes around the world could be. 58 00:02:32,560 --> 00:02:33,960 Speaker 5: Next is international. 59 00:02:34,240 --> 00:02:36,360 Speaker 4: You know, we're in two hundred and twenty countries and reagions 60 00:02:36,360 --> 00:02:38,399 Speaker 4: around the world, one of the most global in our companies, 61 00:02:38,480 --> 00:02:40,720 Speaker 4: and yet a lot of our businesses still concentrate in 62 00:02:40,760 --> 00:02:43,520 Speaker 4: the United States and a few other English speaking countries. 63 00:02:43,680 --> 00:02:46,880 Speaker 4: So whether it's Germany, Korea, Japan, Brazil, or many other countries, 64 00:02:47,000 --> 00:02:49,200 Speaker 4: these are huge markets that we can grow and that's 65 00:02:49,240 --> 00:02:50,760 Speaker 4: going to create a huge amount of growth, and by 66 00:02:50,760 --> 00:02:52,639 Speaker 4: the way, if there's ever a company that would be 67 00:02:52,639 --> 00:02:54,480 Speaker 4: able to expand our nationally, it would be a global 68 00:02:54,480 --> 00:02:55,320 Speaker 4: travel network. 69 00:02:55,480 --> 00:02:57,360 Speaker 5: And then beyond that, I think verybon you. 70 00:02:57,360 --> 00:03:00,519 Speaker 4: Can do much more than offer homes for people to 71 00:03:00,560 --> 00:03:03,160 Speaker 4: book on a nightly basis. And I hope to be 72 00:03:03,280 --> 00:03:04,959 Speaker 4: back on your show soon to be. I'll tell you 73 00:03:04,960 --> 00:03:06,440 Speaker 4: about some of those things to. 74 00:03:06,440 --> 00:03:08,720 Speaker 1: Our Bloomberg Radio and TV audience. Well, while we are 75 00:03:08,760 --> 00:03:12,360 Speaker 1: speaking to airbnbco Brian Chesky and mentioned it at the beginning, 76 00:03:12,440 --> 00:03:14,880 Speaker 1: these kind of regular annual updates. And I know you 77 00:03:14,880 --> 00:03:18,120 Speaker 1: yourself are actually pretty hands on product wise, but it's 78 00:03:18,160 --> 00:03:21,080 Speaker 1: all done internally. And I think about the investments that 79 00:03:21,080 --> 00:03:24,320 Speaker 1: you've had to make to do the AI integration to 80 00:03:24,400 --> 00:03:26,760 Speaker 1: this latest tool. Where are you spending Is it just 81 00:03:26,800 --> 00:03:27,560 Speaker 1: purely on talent? 82 00:03:27,720 --> 00:03:28,040 Speaker 5: Talent? 83 00:03:28,280 --> 00:03:29,799 Speaker 4: Where am I spending my time or our money or 84 00:03:29,960 --> 00:03:33,640 Speaker 4: time and money time is money. I am spending most 85 00:03:33,680 --> 00:03:35,920 Speaker 4: of my time on the product what I've spent most 86 00:03:35,960 --> 00:03:36,640 Speaker 4: of my time in the. 87 00:03:36,600 --> 00:03:38,520 Speaker 5: Last two years. And let me back up. 88 00:03:39,240 --> 00:03:41,520 Speaker 4: Travel is one of the most aspirational things in the 89 00:03:41,520 --> 00:03:44,040 Speaker 4: world right If you ask people all the money role 90 00:03:44,080 --> 00:03:45,960 Speaker 4: would do, they say they travel? And yet the way 91 00:03:45,960 --> 00:03:48,440 Speaker 4: a lot of travel companies are run, but they're run 92 00:03:48,760 --> 00:03:51,320 Speaker 4: by just looking at the financials and look at the metrics, 93 00:03:51,320 --> 00:03:53,920 Speaker 4: and we do that, but there's something deeper. You have 94 00:03:54,000 --> 00:03:56,640 Speaker 4: to create an amazing experience for guests and hosts. Is 95 00:03:56,720 --> 00:03:58,560 Speaker 4: what I've done is I've been listening over the last 96 00:03:58,640 --> 00:04:00,960 Speaker 4: couple of years, and we may three hundred and fifty 97 00:04:01,040 --> 00:04:03,840 Speaker 4: major features and upgrades based on what the community has 98 00:04:03,880 --> 00:04:06,840 Speaker 4: told us. We said that yesterday was a turning point, 99 00:04:07,080 --> 00:04:09,520 Speaker 4: that when we could have a major answer for reliability, 100 00:04:09,640 --> 00:04:12,320 Speaker 4: the number one reason people book hotels. Now we have 101 00:04:12,400 --> 00:04:14,720 Speaker 4: permission to do new things because people don't want new 102 00:04:14,720 --> 00:04:16,640 Speaker 4: things from you unless they love the thing you do. 103 00:04:17,040 --> 00:04:19,039 Speaker 4: I think people are gonna love guest favorites, and I 104 00:04:19,040 --> 00:04:21,360 Speaker 4: think we're gonna be ready for us to see new things. 105 00:04:21,360 --> 00:04:23,559 Speaker 4: And that's what I'm spending my time on. My time 106 00:04:23,640 --> 00:04:26,640 Speaker 4: is spent on innovation and what's next for Airbnb. 107 00:04:27,200 --> 00:04:29,680 Speaker 2: I perhaps sometimes having to go and talk to regulators, 108 00:04:29,720 --> 00:04:31,359 Speaker 2: and I think of some of the reasons people are 109 00:04:31,360 --> 00:04:35,520 Speaker 2: buying hotels in New York is because there's less Airbnb supply. 110 00:04:36,040 --> 00:04:38,120 Speaker 2: You call it basically a de facto man here in 111 00:04:38,160 --> 00:04:40,200 Speaker 2: New York. How is that going? What are you doing 112 00:04:40,200 --> 00:04:41,080 Speaker 2: to try and push back. 113 00:04:41,640 --> 00:04:44,839 Speaker 4: Well, it means the way it's going is that hotels 114 00:04:44,920 --> 00:04:47,320 Speaker 4: are now up eight percent year of a year from 115 00:04:47,320 --> 00:04:49,960 Speaker 4: a cost perspective. If you have me on here next year, 116 00:04:49,960 --> 00:04:52,240 Speaker 4: I'm going to make a prediction hotels will be more expensive. 117 00:04:52,680 --> 00:04:54,880 Speaker 4: I'm not sure if housing will be down. So New 118 00:04:54,960 --> 00:04:58,120 Speaker 4: York I think is turning into at least a cautionary tale. 119 00:04:58,160 --> 00:04:59,960 Speaker 4: I'm disappointed of how it could go. But you know, 120 00:05:00,000 --> 00:05:02,120 Speaker 4: so what other cities have chosen a different approach. We're 121 00:05:02,120 --> 00:05:05,040 Speaker 4: one hundred thousand cities in our top two hundred markets. 122 00:05:05,240 --> 00:05:08,480 Speaker 4: Eighty percent of them have sensible regulation on the book. 123 00:05:08,520 --> 00:05:11,679 Speaker 4: So we found a sensible solution. And whether it's London 124 00:05:11,960 --> 00:05:14,560 Speaker 4: or Paris. In Paris, half a million people are going 125 00:05:14,600 --> 00:05:17,000 Speaker 4: to stay in airbnbs for the Olympics. So I want 126 00:05:17,000 --> 00:05:18,520 Speaker 4: cities to know that we want to be part of 127 00:05:18,560 --> 00:05:21,240 Speaker 4: the solution, not part of the problem, and we're willing 128 00:05:21,279 --> 00:05:23,800 Speaker 4: to compromise and come to the table and find ways. 129 00:05:23,560 --> 00:05:24,480 Speaker 5: To make the cities work. 130 00:05:24,520 --> 00:05:25,680 Speaker 4: And I think a lot of other seas have found 131 00:05:25,680 --> 00:05:27,359 Speaker 4: that path, Brian. 132 00:05:27,520 --> 00:05:29,600 Speaker 3: You know, obviously what's going on in New York has 133 00:05:29,640 --> 00:05:31,880 Speaker 3: been pretty dramatic. You know, people are calling this the 134 00:05:31,920 --> 00:05:34,240 Speaker 3: airbnb apocalypse, and there are a lot of concerns that 135 00:05:34,320 --> 00:05:36,919 Speaker 3: other cities could follow on, even if they do have 136 00:05:37,000 --> 00:05:40,279 Speaker 3: smart regulation. Now I'm sort of curious on top of that, 137 00:05:40,600 --> 00:05:43,279 Speaker 3: what are the travel trends that you're seeing post pandemic? 138 00:05:43,360 --> 00:05:45,640 Speaker 3: Are people wanting to say, you know, I'm tired, I 139 00:05:45,720 --> 00:05:48,800 Speaker 3: just want to stay cation? And you know what trend 140 00:05:48,880 --> 00:05:51,160 Speaker 3: changes are you seeing in travel trends for the folks 141 00:05:51,200 --> 00:05:52,120 Speaker 3: who are going out. 142 00:05:52,279 --> 00:05:54,880 Speaker 4: So two things, just on the first part of the question. 143 00:05:55,240 --> 00:05:57,279 Speaker 4: We do not think New York is a trend. We 144 00:05:57,279 --> 00:05:59,479 Speaker 4: think New York's late to the party, not early, I 145 00:05:59,480 --> 00:06:03,279 Speaker 4: mean again, And we've worked with cities around the world. 146 00:06:03,360 --> 00:06:05,800 Speaker 4: We now collect nine billion dollars it's hotel tax, and 147 00:06:05,880 --> 00:06:08,560 Speaker 4: I think that cities are not looking to New York 148 00:06:09,200 --> 00:06:12,920 Speaker 4: on the travel trends. It's really interesting, Emily. Before the pandemic, 149 00:06:13,240 --> 00:06:15,719 Speaker 4: eighty percent of our business was people either crossing a 150 00:06:15,760 --> 00:06:17,400 Speaker 4: border or going into a city. 151 00:06:17,760 --> 00:06:20,000 Speaker 5: The pandemic that was shut off. So what were people doing. 152 00:06:20,040 --> 00:06:22,520 Speaker 4: They're getting a car and they were staying in big homes, 153 00:06:22,680 --> 00:06:25,400 Speaker 4: larger homes with their friends, their family, typically in less 154 00:06:25,480 --> 00:06:26,120 Speaker 4: urban areas. 155 00:06:26,520 --> 00:06:27,560 Speaker 5: So what's happening now? 156 00:06:27,680 --> 00:06:31,360 Speaker 4: What's interesting is the old Airbnb is back, the old 157 00:06:31,360 --> 00:06:33,279 Speaker 4: ways of traveling are back, but the new ways of 158 00:06:33,279 --> 00:06:34,400 Speaker 4: traveling are here to stay. 159 00:06:34,520 --> 00:06:35,760 Speaker 5: And there's two reasons why. 160 00:06:36,120 --> 00:06:38,440 Speaker 4: Number One, even though some people are going back to 161 00:06:38,440 --> 00:06:41,479 Speaker 4: the office more often, there's a lot of flexibility. You 162 00:06:41,560 --> 00:06:44,800 Speaker 4: can now do more work from an extended weekend. I'll 163 00:06:44,800 --> 00:06:47,360 Speaker 4: make a prediction next week for Thanksgiving or the week 164 00:06:47,400 --> 00:06:49,640 Speaker 4: after for Thanksgiving. A lot of people aren't taking three 165 00:06:49,720 --> 00:06:52,000 Speaker 4: or five day weeks. They're taking sevenay weeks. They're going 166 00:06:52,040 --> 00:06:54,279 Speaker 4: to work remotely Monday or Tuesday, so they're going to 167 00:06:54,320 --> 00:06:55,920 Speaker 4: start taking those longer trips. 168 00:06:56,120 --> 00:06:58,800 Speaker 5: So it's actually a very resilient business. 169 00:06:58,839 --> 00:07:01,120 Speaker 4: And I think that more we're going to travel because 170 00:07:01,120 --> 00:07:03,000 Speaker 4: it's what was taken away from the pandemic, and I 171 00:07:03,000 --> 00:07:04,880 Speaker 4: think it's how they want to spend time with people. 172 00:07:05,560 --> 00:07:08,320 Speaker 3: I want that seven day week. Brian, last quick question, 173 00:07:08,440 --> 00:07:11,520 Speaker 3: we've only got thirty seconds left. Affordability. You're bringing down 174 00:07:11,880 --> 00:07:14,320 Speaker 3: cleaning fees. Prices have come down a bit, but do 175 00:07:14,360 --> 00:07:15,920 Speaker 3: they need to come down more? And can you do 176 00:07:16,000 --> 00:07:17,400 Speaker 3: that without alienating hosts. 177 00:07:17,600 --> 00:07:17,840 Speaker 5: Yeah. 178 00:07:17,880 --> 00:07:21,040 Speaker 4: I think our secret sauce is finding this magic balance 179 00:07:21,240 --> 00:07:24,360 Speaker 4: to make sure that on the one hand, the offering 180 00:07:24,400 --> 00:07:28,320 Speaker 4: is affordable for guests. Another hand, hosts are still making 181 00:07:28,480 --> 00:07:31,960 Speaker 4: great money putting on Airbnb. We don't price anything, so 182 00:07:32,000 --> 00:07:34,679 Speaker 4: what we're doing is we're just trying to provide transparency 183 00:07:34,960 --> 00:07:36,560 Speaker 4: and tools and guidelines. 184 00:07:36,680 --> 00:07:37,559 Speaker 5: Here's the good news. 185 00:07:38,040 --> 00:07:41,360 Speaker 4: In the United States, prices are three percent down on 186 00:07:41,440 --> 00:07:44,520 Speaker 4: Airbnb year every year. Yeah, host earnings are at record 187 00:07:44,600 --> 00:07:46,920 Speaker 4: highs while hotels are up ten percent. 188 00:07:47,320 --> 00:07:49,200 Speaker 5: So the trend line's going in the right place. 189 00:07:49,440 --> 00:07:52,080 Speaker 4: And I think hopefully a year from now, ourt prices 190 00:07:52,120 --> 00:07:54,320 Speaker 4: won't be going up nearly as fast as hotels. And 191 00:07:54,360 --> 00:07:56,480 Speaker 4: if that happens, it means airbbe's a better value every 192 00:07:56,560 --> 00:07:57,480 Speaker 4: year than the year before. 193 00:07:57,960 --> 00:08:01,080 Speaker 2: Something Steflationery and me and Meca Brian Chesky, we thank 194 00:08:01,080 --> 00:08:03,080 Speaker 2: you so much for your time, who made Emily Chang 195 00:08:03,120 --> 00:08:04,840 Speaker 2: as well. We love having you on. Thank you