Airbnb Boosts Marketing and Hiring Ahead of Launching New Ventures

In a bold move to diversify revenue streams beyond its core home-sharing platform, Airbnb announced plans to significantly ramp up marketing efforts and hiring this year as it prepares to unveil new business ventures in May. The San Francisco-based company revealed it will invest between 200 million and 250 million in 2024 to fuel these expansions, with ambitions to generate $1 billion in annual revenue from the initiatives within a few years.

Expanding Beyond Accommodations

While Airbnb did not disclose specifics about the new ventures, executives hinted at reviving and expanding its "Experiences" offerings—curated local activities such as bike tours, cooking classes, and food tastings. Originally launched in 2016, the program was scaled back during the COVID-19 pandemic but is now central to the company’s growth strategy. The goal is to create immersive, city-specific experiences that attract both travelers and locals, setting Airbnb apart from competitors like TripAdvisor’s Viator and GetYourGuide.

Ellie Mertz, Airbnb’s CFO, emphasized the focus on programmatic marketing (automated media buying) and hiring across product marketing, design, and engineering roles. The company also plans to bolster its international expansion efforts under Chief Business Officer Dave Stephenson. By increasing headcount by roughly 10% this year (up from 6% growth in 2023), Airbnb aims to build supply for its new services while enhancing awareness.

Balancing Ambition with Profitability

Analysts note that while the upfront investment may strain margins temporarily, the long-term payoff could be substantial. Dan Wasiolek of Morningstar predicts Airbnb’s Experiences business could reach $10 billion in bookings by 2030, driven by high demand for unique, localized activities. Meanwhile, Kevin Kopelman of TD Cowen acknowledged short-term margin pressures but highlighted the potential for "high-margin" returns if the ventures succeed.

To fund these initiatives, Airbnb intends to maintain profitability in its core home-rental business through automation and operational efficiencies. "The fixed upfront expense won’t disappear, but it will minimize over time as revenue scales," Mertz explained.

What’s Next?

Airbnb’s new offerings may include partnerships with local service providers, such as personal chefs or wellness trainers, and even transportation options via ride-share collaborations. While details remain scarce, Mertz stressed close collaboration with CEO Brian Chesky and Stephenson to ensure alignment with strategic goals and robust tracking metrics.

Investors and industry watchers are closely monitoring whether Airbnb can replicate its early success in home-sharing with these bold moves. As the company enters new markets, its ability to balance innovation with financial discipline will be critical to sustaining growth in an increasingly competitive landscape.

This article references insights from Airbnb’s CFO Ellie Mertz and analysts at Morningstar and TD Cowen.