Airbnb has been scaling to greater heights as time goes by, just to ensure that the company’s clients receive the best of services. As a customer, you no longer have to put up with the “good old days” when the best you could get was an air mattress on the floor.
The mega-wealthy now have a better chance to use their cash to get them the luxury they crave, with the availability of a luxury rental property. Those who have been opting for luxury hotels can now relax and enjoy their stay in what should be considered as some of the most extravagant homes in the entire world.
Airbnb Luxe is the new rental tier that has made it possible for clients to enjoy the new high-end services. We are talking options ranging from entire islands to medieval castles, archery ranges, dinosaur skulls, mansions decked out with water slides, and more.
Brian Chesky, Airbnb’s chief executive and co-founder says that the motivation behind the introduction of the Luxe tier is their strategy of providing a suitable product for every traveler. As such, they introduced the tier to cater for those seeking luxury.
The tier’s portfolio of 2,000 homes is comprised of ski lodges in New Zealand, Villas in Tuscany, as well as castles in France. These homes were picked from the various properties listed on the high-end vacation rental company that was acquired by Airbnb in 2017.
Chesky reveals that the customers opting for the properties are the ones who rented sofas with the company before the grew to the level they are at currently. Now that these customers are earning more and prefer better services, they seek upscale accommodation. That’s why Airbnb has, in the past year, had a 60% increase in bookings that would set you back $1,000 or more a night, according to Chesky.
Before selecting the different property for consideration to the Luxe tier, different factors such as the home’s design, view, and location had to be considered. The activities at the property also go a long way in helping the guest have an idea of the area’s culture and way of life as well. At Castello di Vicarello in the Tuscan countryside, visitors can enjoy activities like hiking through 100 acres of land as well as helping local farmers with harvests.
To book for Luxe’s entry-level listings in the Caribbean, one has to part with $600 each night for the low season. The most expensive listing, on the other hand, would set you back $1M every week. At such an expensive price, however, you have four pools, 21 bedrooms, and a staff of 50 at your disposal.
The average listing, as quoted by Chesky is $2,000 a night for the Luxe tier, compared to the normal listings where one can find a listing as cheap as less than $20 each night. For customers who would wish to have the upmarket though not luxury home, $150 per night is what one would have to part with on an average basis.
The Luxe package also offers a trip designer, who helps the clients during their stay with things such as airport transfers, local tours, and more.
Rummy Pandit, of Lloyd D. Institute of gaming, however, thinks that it will still be a challenge for Airbnb to get credibility in the luxury travel sector even after offering such a package. He says that Airbnb has had a reputation of offering affordable packages, so the company should concentrate on building a track record in a new area.
Besides, Airbnb has to face competition from companies such as Oliver’s Travels and others. However, the increasing demand for vacation home rentals might favour Airbnb. Research by Skift shows that 2018 had rentals that included home rentals generating roughly $22.7 billion as revenue. Skift only expects the revenue to expand by 30% to approximately $30 billion this year.