Once commonly perceived as twenty-somethings backpacking from one hostel to another, looking for a spot to plug in their laptops, the meaning of digital nomads today is not quite the same as it used to be.
Due to the rise of flexible work arrangements, a new breed of digital nomads has emerged, one that merges work, play, and purpose. Dubbed “anywhere workers” in a recent Lonely Planet survey, most work in high-tech fields, with 61% working full-time.
The work-from-home to the work-from-anywhere trend has fueled the growth of bleisure travel —one that combines business with leisure, and it’s here to stay.
Let’s look at how a leading vacation rental brand profits from the rise of bleisure travel in an interesting case study.
Long-Term Stays Surging on Airbnb as Remote Work Continues to Drive Travel Trends.
Airbnb, Inc. is an online marketplace founded in 2008 by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia, with headquarters in San Francisco. The company facilitates short-term homestays and experiences by acting as a broker and charging a commission for each booking made through its platform.
This trend can potentially impact the office property and hotel markets as remote workers prioritise more flexible accommodation options.
The company used the WFA trend to pull itself out of the pre-pandemic slump.
How Airbnb capitalised on this travel trend both internally and externally.
Airbnb reported over 100 million bookings during the first quarter of 2022, a record that underscores a rebound made possible thanks to various cost-cutting measures and the tech giant’s focus on capturing business from remote workers.
Airbnb conveyed to its 6,000-person workforce, half of whom are based in the United States, that they would not be required to return to an office if they choose not to. Instead, the company’s “Work From Anywhere” policy enables employees to move anywhere within their home country without affecting their compensation. Under the policy, workers are expected to attend in-person meetings once per quarter for a week. Additionally, starting in September, employees can live and work anywhere worldwide for up to 90 days each year.
According to CEO Brian Chesky, the company has successfully managed to navigate through the pandemic, rebuilt the company, went public, upgraded its services, and achieved record earnings, all while working remotely.
Airbnb launched its “Live and work anywhere on Airbnb” initiative to lure remote workers.
- Airbnb launched remote working hubs in 2022 across various countries.
- The remote working hubs provide Airbnb with another way to tap into entrepreneurs as guests.
- Airbnb is forming more partnerships with local and national governments to launch remote working hubs and other initiatives to drive tourists to remote destinations, like The Bali remote working hub in partnership with the Ministry of Tourism and Creative Economy of the Republic of Indonesia.
Airbnb aims to expand its offerings to capture more short-term and long-term stay bookings, presenting a valuable new use case for the platform beyond traditional travel.
Our Insights on Airbnb’s “Live and Work Anywhere” Initiative in 2023.
Remote work, whether occasional or long-term digital nomadism, has become a permanent part of the post-pandemic work culture. This shift allows Airbnb to attract more short-term and long-term stay bookings.
In 2023, Airbnb aims to expand its offerings to capture these stays, as they present a valuable new application for the platform beyond conventional travel.
This expansion also allows AirBnB to demonstrate an increase in its total addressable market (TAM) beyond short-stays and tourists.
The Results
The surge in remote work has driven a significant increase in long-term stays of 28 days or more, which have become the fastest-growing category on Airbnb compared to 2019.
- Over 100 million bookings
- 70% year-over-year increase
- $1.5 billion Revenue
- More than doubled – Extended stays
- 20% of gross nights booked- Extended stays
Want to learn more about the latest travel and tourism trends? Download our report Navigating emerging trends in global travel and tourism, here.
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