[Real Beat] Mapo's Popularity Explodes, Airbnb 'Room Reservations' Increase to World No.1 [Office Shift] (24)

[Exclusive Interview] Catherine Powell, Airbnb Global Head
"Long-term Stays Remain Popular, Growing Demand in Korea"
"Workplace Flexibility and Choice Are Key to Talent Acquisition"

Editor's Note[Jjinbit] is short for 'Jung Hyunjin's Business Trend' and 'Real Business Trend,' a segment that showcases trends in the changing nature of work. The segment within Jjinbit called 'Office Shift' closely examines changes in offices triggered by the COVID-19 pandemic and aims to lay the groundwork for exploring answers to new work styles through experiments we have experienced together. It will be delivered to you every Saturday and Sunday morning. After 40 installments, it will also be available as a book.

'Long-term stays of 28 days or more.' The world's largest accommodation sharing platform Airbnb discovered a user base wanting to stay in specific locations for extended periods during the three years of the COVID-19 pandemic. Although the business was already growing before the pandemic, the spread of remote and work-from-home arrangements accelerated its growth, drawing significant attention. The hands of 'digital nomads' who enjoy workations?working from places other than home?turned to the Airbnb application (app). Long-term stays of 28 days or more accounted for 20% of bookings last year. It was also the sector with the highest user growth in the U.S. over the year.

Catherine Powell, Airbnb's Global Head of Hosting, said in a video interview with Asia Economy on the 27th of last month about global travel trends this year and next, "People worldwide are maintaining a certain level of flexibility. So they are traveling longer and staying longer at destinations." To respond swiftly to these changes, Airbnb conducted a large-scale service installation and upgrade in May this year following last year's efforts, including features that make long-term stays easier and more affordable.

Powell is the figure overseeing Airbnb's overall business, next in line after the CEO. After working 15 years at Walt Disney, she joined Airbnb in January 2020 and has been shaping Airbnb during the COVID-19 period. We asked Powell about changes in global and domestic travel trends and Airbnb's work policies timed with the new service installation and upgrade.

◆ Why Airbnb Started with 'Rooms'

Catherine Powell, Global Head of Hosting at Airbnb (Photo by Airbnb)

Regarding long-term stays, Powell explained, "Airbnb is preparing extensively to make it easier and more affordable for guests to use long-term stays and for hosts to provide them more comfortably." This is based on the judgment that demand for long-term stays will remain steady. Airbnb has been capturing this trend since 2021 and has been adding related features since last year. The recent upgrade announcement includes significantly lowering service fees from the fourth month for users staying longer than three months and adding a feature to search for stays by month.

Powell said, "When living in another area or working remotely, you need Wi-Fi, a desk and chair for work rather than just a dining table. For long stays, things like a washer or dryer are also necessary. We made it easier for guests to check these amenities."

As the situation evolved, the presence of affordable and reliable accommodations became even more important. People needed to reduce costs for spaces that serve as both home and office while staying away from their own homes and find safe spaces.

Airbnb Room (Photo by Airbnb)

In this app update, Airbnb focused on 'rooms,' the platform's starting point. It is an evolved version of the existing 'private room.' This recalls Airbnb’s origin in 2007 when founders Brian Chesky and Joe Gebbia started by offering air mattresses and breakfast in their own homes. Staying in a room is cheaper than renting an entire home and makes it easier to build relationships with hosts. Airbnb introduced that the average nightly rate for rooms was about $67 (approximately 90,000 KRW).

Considering this, Airbnb created a 'Host Profile Card' that allows users to check host information before booking, including occupation and the level of interaction with guests during stays, and added information about privacy protection such as bedroom locks. Powell emphasized, "Connecting people is Airbnb’s most important mission and DNA. At the same time, enabling guests to travel more affordably is key."

◆ One Year Since Introducing 'Live and Work Anywhere'... How Was Productivity?

Having felt the trend change in work policies at the forefront of the travel industry, Airbnb introduced the 'Live and Work Anywhere' policy in April last year. All employees can choose their work location freely, whether office or home, and can stay and work for up to 90 days annually in over 170 countries. This allowed employees to experience workations abroad.

When asked how she evaluates the policy after exactly one year, Powell answered, "Very positively." She revealed that 20% of all employees used the digital nomad program to work for 90 days in countries such as Mexico, Spain, Germany, and India. She emphasized that giving employees the power to choose their work location is "the best way to attract top talent."

[Image source=Reuters Yonhap News]

Regarding Silicon Valley companies reducing remote work citing productivity concerns, Powell responded, "This method has been very productive for us." Airbnb started remote work after the pandemic began. Although it was postponed once, the company went public in December 2020. Powell said, "We have implemented over 400 upgrade innovations for hosts and guests, completely changed how users search by category over several years, and continued development such as introducing systems to simplify hosting. It has been a very positive experience for Airbnb."

When asked for advice to companies trying to increase workplace flexibility, Powell laughed and said, "That's a very difficult question." She added, "It's hard to generalize because every company’s situation is different, but I think to attract talent, you need to offer flexibility and choice. You have to provide both, not just one." She continued, "For example, working from home only three days a week is not true flexibility. Providing complete flexibility is important."

At the same time, she added, "If all teams work remotely or never have opportunities to gather at the office, it is also important to create physical spaces for people to come together to maintain and preserve culture."

◆ Seoul Mapo, Airbnb’s Fastest Growing Popularity Spot Worldwide

With the endemic phase underway, travel demand is expected to surge this summer. Airbnb forecasts that 300 million people will travel or host using the platform this year.

In March, foreign tourists were walking the streets in Myeongdong, Jung-gu, Seoul. [Image source=Yonhap News]

It appears that the number of foreigners visiting Korea has already increased significantly. Powell introduced that from April 1 last year to March 31 this year, Seoul’s Mapo District ranked first worldwide for the largest increase in Airbnb 'room' booking amounts. Melbourne, Australia, was second. This means that relatively affordable rooms with strong local connections have seen a significant rise in users in Mapo over the past year. Considering that during the pandemic, domestic travelers preferred places like Jeju and Gangwon rather than cities, this increase is interpreted as a rise in foreign tourists returning as international flights resumed.

Powell described the Korean Wave (Hallyu) in culture, movies, beauty, and well-being as "like a tsunami." She called Korea "a very important market for Airbnb." She emphasized, "Interest in Korea is growing worldwide. We have invested heavily in branding and marketing for Korea this year. We are seeing interest not only from domestic travelers but also from visitors wanting to experience Korean culture." Airbnb also added 'Hanok' (traditional Korean houses) as a lodging type option in November last year.

Meanwhile, Airbnb turned a profit on an annual basis for the first time last year. The end of the pandemic effectively revived travel demand, leading to increased revenue. Airbnb is scheduled to announce its first-quarter earnings for this year on the 9th (local time).