>> Increased competition and government crackdowns against short term rentals are eating away at Airbnb's business, forcing it to pivot. Thursday, the online home rental company said it's branching out beyond the listings that made it famous, says Reuters' Silicon Valley reporter Heather Somerville.>> Airbnb is rolling out this whole brand for luxury services.
It's got luxury rentals, so these are mansions on the beach that you can rent, and then exclusive, high-end experiences, as they call them, which would be very high-priced trips that you can book ahead of time. So it kind of wants to be your front to end vacation planner.
>> And it's not just upscale properties and experiences being added. A new section for homes inspected by Airbnb comes with a clean and comfortable guarantee and, of course, a higher price tag. It's also looking to get in bed with former foes like Boutique Hotels and Bed and Breakfast adding their accommodations as well.
All of this powered by a new and improved search engine.>> So the person who's looking to book something, the search feature will look very different. It'll be much more organized. Airbnb says they'll be different categories. Say you're a newlywed and you're going on your honeymoon, there'll be a category for that.
On the other end, they are looking for new inventory, so new houses. So they're doing things to appeal to people who have, what we think of as proper vacation homes, nice houses maybe in a rural area, to put their listing on Airbnb. Airbnb hopes it can reignite demand at a crucial time.
It has to prove it's worth the $31 billion value given by early investors as it works towards an initial public offering expected next year. And that it can fight off industry giants like Expedia who are finding success after copying Airbnb's style.