Airbnb, an online platform for hosting and searching for short-term rental of private housing around the world, considers artificial intelligence as a force that can transform the tourism industry.
Last Wednesday, November 1, this company published a report on the financial results of its activities for the third quarter of this year. The period from July to September has become profitable for this firm, due to the high level of consumer activity associated with the summer tourist season and the steady growth of active offers and booked orders.
According to the results of the third quarter, the company’s revenue was fixed at $3.4 billion. This indicator is 18% higher than the result for the same period last year. The company’s net profit for the third quarter was $4.4 billion.
Airbnb also reported that since the beginning of this year, the number of active ads on its virtual platform has increased by 1 million. In the third quarter, this indicator grew by 19% year-on-year. In addition, more nights were booked at the app than ever before. In the third quarter, 53% of all booked nights were recorded on the Airbnb app, compared to 48% for the same period in 2022.
The company’s CEO, Brian Chesky, commenting on the results for the period from July to September during a telephone conversation with investors, said that the brand’s business has fully recovered after the recession provoked by the coronavirus pandemic. According to him, the company’s performance indicators have returned to the level that was observed before the start of the difficult sanitary and epidemiological situation around the world. He also stated that the dynamics of business growth will continue due to making it easier to get started, increasing the level of consumer awareness about hosting, and improving the overall experience for hosters.
The company’s activity in international markets has demonstrated a positive dynamic. The number of overnight bookings abroad in the third quarter increased by 17% compared to the result for the same period last year. The largest growth was observed in the markets of Taiwan, Indonesia, and Thailand. This trend indicates the global reach of the online marketplace for short- and long-term stays and experiences. Also, rapid growth was recorded in South Korea. In this country, the total number of nights booked in the third quarter increased by 50.4% compared to the same period in 2019.
The company is also currently investing in underdeveloped international markets, relying in this case on successful results in Brazil and Germany in recent quarters.
Discussing the use of artificial intelligence in business, Brian Chesky stated the potential of advanced technology to improve the quality of travel and transform the tourism industry as a whole. He stated that in this case, virtual platforms operating in the specified sphere, such as, for example, online travel agencies, are the main beneficiaries of applying AI because of their original digital nature.
Brian Chesky also noted the potential of machine intelligence to improve the quality of customer service activities. He noted that advanced technology can help in solving complex issues related to guests and hosts from all over the world who speak different languages and operate under different legislative systems. As an example, Brian Chesky described a situation when a Japanese man receives a German as a guest, but certain difficulties arise, as a result of which these two people are forced to call customer support. He noted that in this case, many problems need to be solved since there is no reception desk, there is no possibility to go on-premises and there is no understanding of inventory. Also, in such situations, you have to act within different regulatory frameworks.
Brian Chesky noted that artificial intelligence can solve the mentioned problems without any difficulties. According to him, thanks to AI, the agent will receive the best offer in a matter of seconds to overcome a difficult situation and provide customer support.
Also, the CEO of Airbnb said that machine intelligence has the potential to transform the ways travelers search and book accommodation and experiences. In his opinion, artificial intelligence can transform static and somewhat outdated paradigms that have dominated the industry for decades into a more personalized and dynamic experience. For example, AI can create booking models that ask users questions, draw conclusions from interaction with consumers, and offer the most suitable travel options. This level of personalization, which is traditionally associated with the practice of standard travel agencies, can be scaled with the help of artificial intelligence. AI is also able to transform the algorithm for planning and booking trips.
As we have reported earlier, Airbnb to Requiring Guests to Verify Their IDs.