Airbnb CEO reveals the non-AI feature that got the biggest reaction from analysts

Airbnb CEO Brain Chesky revealed during the company’s third-quarter earnings call that the most popular new service wasn’t one of its AI-driven features, but rather a practical offering which is luggage storage. “What a sleeper hit,” Chesky said, noting that when he mentioned the feature during a keynote, it received the loudest cheer from analysts compared to AI announcements. Airbnb introduced luggage storage in May through a partnership with Bounce, a global platform that helps travelers find secure places to store bags before check-in or after checkout. Guests can now see nearby drop-off locations in the app and access discounted rates in select cities. Chesky said the feature also drew a huge reaction on Instagram, joking: “I finally felt cool on the internet.”“I went on stage in this keynote, wanted to talk about all these AI features, the biggest cheer I got was luggage storage. I finally felt cool on the internet because I posted on Instagram, people are cheering for luggage storage. That’s not the sexiest service, I would say. I will say what we’ve learned is that every service in and of itself has value. Some are going to drive a lot more revenue, like car rentals and luggage storage,” said Chesky during the earnings call.Airbnb on expanding its servicesWhile luggage storage has proven unexpectedly popular, Chesky said the most widely used new service “by far” has been car rentals, with average rental durations exceeding the length of typical Airbnb stays. Both services have become revenue drivers, helping Airbnb compete more directly with hotels by offering conveniences travelers expect.Chesky emphasised that every added service increases the likelihood of guests booking through Airbnb, whether for homes or hotels. He said the company has a pipeline of dozens more services in development. Airbnb posted an earnings beat in Q3, with its stock rising about 10% in after-hours trading.Earnings performanceAirbnb posted stronger-than-expected third-quarter results, with revenue growth exceeding analyst forecasts. The company’s earnings beat sent its stock up nearly 10% in after-hours trading, underscoring investor confidence in Airbnb’s strategy of expanding beyond rentals into guest services and experiences.Airbnb CEO on investing in New YorkIn related news, recently Airbnb CEO revealed his plans on investing in New York. The New York City's business climate under Mayor Zohran Mamdani remains under scrutiny amid scrutiny of several billionaires. Yet, Airbnb has reportedly reaffirmed its commitment to the city by purchasing a six-storey building at 281 Park Avenue South in Manhattan’s Gramercy neighbourhood for $81.5 million. A New York Post report claims that the 42,500-square-foot Beaux-Arts building will serve as a hub for its New York-area workforce of more than 600 employees. This move by Airbnb comes even as several prominent business leaders have warned that companies and high-income taxpayers could expand elsewhere in response to Mamdani's policy proposals, which include a rent freeze for rent-stabilised apartments.In a statement to AM New York, Airbnb CEO Brian Chesky noted that the investment reflects the company's long-term plans for the city. He said, “New York City has been part of our story since the earliest days of Airbnb. This building reflects our long-term commitment to the city and will be home to one of our largest employee hubs outside of San Francisco. We're excited to keep investing in the city and the people who make it extraordinary.”Airbnb is also expanding into New York City for the first time after years of disputes over short-term rental rules. The move comes despite regulations, including 2022's Local Law 18 and a 30-day minimum stay requirement, that restricted its core rental business. Moreover, the company is buying a permanent home in Manhattan.Get the latest technology news and updates. Download the TOI App.