The travel industry is notoriously sensitive to economic downturns. When people need to cut back on spending, vacations are often among the first to go.
But Airbnb is unique among its industry peers in its ability to withstand recessionsaccording to Nate Blecharczyk, the company’s co-founder and chief strategy officer.
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“For most companies, a recession is not a good thing, and I would never wish for something that was not good for others,” Blecharczyk told Quartz. However, he says, “I actually think we would thrive in a recession.”
Airbnb, after all, was founded in the dawn of the Great Recession in 2008, a time when many people were losing both their jobs and their homes. Renting out a spare bedroom or an entire house or apartment has proven to be an easy way for people to supplement their income in a time when money was tight. Acting as an Airbnb host would likely have the same appeal during a recession today, Blecharczyk says.
As for whether people might forgo vacations in tough economic times, Blecharczyk isn’t worried. His bet is that people will still want to travel, but at a lower cost — a desire that Airbnb can fulfill thanks to the company’s vast inventory at various price points. During the pandemic, he points out, Airbnb gained market share while some townspeople fled the city to rural houses where they could work abroad.
It’s just one of the ways Airbnb’s business trends have reflected ongoing changes in the way people live and work. Quartz spoke with Blecharczyk about how various economic trends are currently shaping Airbnb’s future.
What a cooling housing market means for Airbnb
The US real estate market is finally showing signs of cooling– and Blecharczyk says that’s a good thing from an Airbnb business perspective. “Housing prices have skyrocketed over the years, and sometimes that affects us when people worry about affordability,” he says. Critics have argued over the years that Airbnb listings can decrease cities’ housing supply and drive up real estate and rent prices, with one Arizona city going up to offer to pay the owners if they are renting their property long term rather than short term.
Blecharczyk says Airbnb is not a major driver of rising house prices. But either way, he says, a more affordable housing market would also help relieve Airbnb.
Why Airbnb is betting big on remote work
Airbnb strongly supports remote working, since extending a work from anywhere policy to its own employees earlier this year to introduce new site features intended to cater to people who want to travel now that they are no longer tied to a desk. Blecharczyk says Airbnb is already seeing the impact of remote working on businesses.
The number of new hosts under the age of 25, for example, increased by 90% in the second quarter of 2022 compared to the same period a year ago. “I guess it has to do with flexible working,” Blecharczyk says. Young people, especially those who don’t yet have children, “are not just traveling on Airbnb as guests, but becoming hosts and using it to subsidize their trips,” he explains.
Airbnb data also shows that long-term stays of 28 days or more are increasingly popular, having double in the first quarter of 2022 compared to the first quarter of 2019. Blecharczyk says that if the newfound flexibility of some workers changes the way they use Airbnb, it is true that the majority should be in the office at least a few days a week. But he expects the popularity of remote work to continue to grow in the future, despite the Best Efforts of some office-oriented employers.
“My view is that ultimately, for many companies, talent is the most scarce resource,” Blecharczyk says. “And the talent has been loud and clear that they appreciate [remote work].”
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