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Airbnb expands into hotel bookings and even grocery deliveries

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Why This Matters

Airbnb's expansion into hotel bookings and grocery deliveries signifies its strategic move to diversify its services and compete more directly with traditional travel platforms. This development enhances convenience for travelers by integrating accommodation, shopping, and transportation options within a single app, potentially reshaping the travel experience. For consumers, it offers more seamless, cost-effective, and personalized travel planning, strengthening Airbnb's position in the industry.

Key Takeaways

Airbnb has been expanding beyond rooms and homes for rent over the past decade. Now, it's adding more useful services for travelers in its app, including the ability to book — wait for it — hotels starting this summer. I have personally booked apartment-style hotels and serviced apartments from Airbnb in the past, but this expansion will add thousands more boutique and independent hotels in major cities around the world, including New York, Paris, London, Madrid, Rome and Singapore, to its listings.

The company says it's featuring "hotels that feel like Airbnb," and it promises to price-match if you find them elsewhere for a lower price. Airbnb will also give you up to 15 percent in credit that you can use for a future booking if you reserve one of the featured hotels. It's not entirely clear whether both offers are permanent, but the platform needs to make it more enticing to book hotels in its app rather than with competitors like Booking.com and Agoda.

In addition, Airbnb is introducing in-app grocery delivery. You can get them delivered anytime during your trip, but in select cities, you can also have them sent to your rental before you even get there, so the host can stock your place. If you're an Airbnb guest, deliveries are free, and you'll also get a $10 discount for orders worth $50 or more. At the moment, grocery delivery is available in 25 US cities through a partnership with Instacart. Airbnb didn't say whether it's expanding internationally, but it sure sounds useful if you've ever found yourself unable to use local apps while abroad.

Airbnb

Airbnb Services now also offer airport pickups, in partnership with Welcome Pickups, whose drivers will track your flight and meet you when you arrive in 160 cities around the world. Welcome Pickups has its own website, but booking through Airbnb as a guest will get you a 20 percent discount on every ride. Airbnb has teamed up with luggage storage company Bounce as well and will now let you view the nearest drop-off locations in the app. You'll be able to see exactly how far drop-offs are from your listing, so you can leave your luggage there if your rental isn't ready yet. You'll also get 20 percent credit back toward your next booking. Finally, Airbnb will add car rentals on its platform this summer and will show you vehicles near your listing. You'll get back 20 percent of what you spent for your first car rental as credit.

The company is giving its experience list a boost, as well, adding thousands of new options this summer. Some of the most notable experiences available are focused on popular landmarks, such as the Tokyo Skytree and the Taj Mahal. It's also expanding its selection of food culture experiences, and it's offering FIFA World Cup experiences across six host cities, such host parties with previous champions.