01:51:24 · Brian Chesky, John Coogan
[01:51:24] S8: Yeah. I mean, I think that's a really, really good point. And usually, people's second biggest asset after their home is their car. Sure. And so I think now we have people's time, we have their homes, we have their cars. We would like to move to a lot of different other categories. Over time, I think you'll see a couple dozen other categories coming over the next year or two on Airbnb, essentially building this entire ecosystem of services. But you're right. I mean, think maybe one way to think about Airbnb is like just getting more capacity utilization out of assets. You know, anything that's empty, it could be further monetized and the world could be a bit more efficient. It could be cheaper to own a car. It could be cheaper to own a house if you could defer the cost by sharing with other people. That was basically how it started. I couldn't afford to pay rent, But that doesn't limit itself to homes, as you mentioned. It could be anything. Cars. It could be boats. It could be equipment you have laying around. It could be kind of anything. [01:52:13] S0: How do you think about the the previous services that have tied into Airbnb? Was there ever a power law distribution in those any few services? We've talked about fitness trainers when you're in a town or private chefs or anything that can add to an experience, a kayaking tour, a hiking tour. Was there a power law distribution in those? Are you seeing breakout successes in those? Like what's the shape of that side of the business these days?
01:52:13 · John Coogan, Brian Chesky
[01:52:13] S0: How do you think about the the previous services that have tied into Airbnb? Was there ever a power law distribution in those any few services? We've talked about fitness trainers when you're in a town or private chefs or anything that can add to an experience, a kayaking tour, a hiking tour. Was there a power law distribution in those? Are you seeing breakout successes in those? Like what's the shape of that side of the business these days? [01:52:45] S8: Yeah. So basically, we learned two things with these services. I'll talk about service and experiences. Yeah. There are three services. We launch a ten, three breakout hits. Mhmm. The three breakout hits are photography. A lot of people want photos on their vacation. And obviously, if you're a family of four [01:52:59] S0: Yeah. [01:53:00] S8: Like, one of you is not in the photo or you're giving your camera to someone else and, you know, you wanna remember these trips. So having a professional photographer take your photos for thirty minutes [01:53:08] S0: Yeah. [01:53:09] S8: Is pretty reasonable cost. Yeah. That's very popular. [01:53:11] S0: Yeah.
01:53:11 · John Coogan, Brian Chesky
[01:53:11] S0: Yeah. [01:53:11] S8: Chefs chefs are not as popular in very urban areas, but like, let's say go to Lake Tahoe. Yep. You have a big kitchen, maybe you have groceries, maybe you don't wanna cook. Yeah. A chef could come over. There's not a lot of restaurants there. And then the third one's massage, especially, again, in vacation rental or villa massage is very popular. Other than that, it's really geography by geography. So we see like in Salulita, it's a different kind of experience than say in like The Caribbean. So it really depends geography by geography. [01:53:38] S0: Mhmm. [01:53:39] S8: With regards to experiences, we're seeing a couple of things. Number one, no surprise landmarks. People the first time you go to a city, you want to see a landmark. But the thing we learned is the second time you go to a city, you don't want to see a landmark. You want to experience food. And the third time you experience a city, now you want to get inside access. So a big thing we learned is, is this your first, second or third time to the city? Or do you live there? And depending upon the answer to the question depends on the type of experience we offer you. This is a nuance that we didn't really appreciate the first time around, and now we do. And I think my prediction is the thing that will make service experiences really big is people will start booking them in their own city. That's when the TAM goes by a factor of 10. And not to say it'll be every day, but it just makes it a lot bigger TAM.
01:53:39 · Brian Chesky, Jordi Hays, John Coogan
[01:53:39] S8: With regards to experiences, we're seeing a couple of things. Number one, no surprise landmarks. People the first time you go to a city, you want to see a landmark. But the thing we learned is the second time you go to a city, you don't want to see a landmark. You want to experience food. And the third time you experience a city, now you want to get inside access. So a big thing we learned is, is this your first, second or third time to the city? Or do you live there? And depending upon the answer to the question depends on the type of experience we offer you. This is a nuance that we didn't really appreciate the first time around, and now we do. And I think my prediction is the thing that will make service experiences really big is people will start booking them in their own city. That's when the TAM goes by a factor of 10. And not to say it'll be every day, but it just makes it a lot bigger TAM. [01:54:21] S1: Yeah. Yeah. Just just clicked for me that, you know, one of the challenges of all the marketplaces like photography, chef marketplaces, massage, all of them I can't even really think of their names even though there was like venture funded companies in those categories because the second you hire a chef, they're literally preparing you food. You immediately develop like trust and a relationship. And so in if you book find a chef in your hometown [01:54:49] S0: You're talking about disintermediation. [01:54:50] S1: You're gonna have this massive disintermediation
01:54:50 · Jordi Hays, John Coogan
[01:54:50] S1: You're gonna have this massive disintermediation [01:54:52] S0: also, like economies of scale, if you're just the private chef booking company, very hard to support Yeah. The entire operation, the back office. But Airbnb is a big company. This can be one of many features and the Yeah. [01:55:07] S1: It's like, yeah, want a photographer here. Yeah. I want a chef here. [01:55:09] S0: Yeah. Yeah.
01:55:10 · Brian Chesky
[01:55:10] S8: You bring up two points. I'll I'll bring up both points. So one thing is most services, there's not even one app in the world. Yeah. So if you want to get a massage in The United States, you might use an app like Zeel. But if you want to get a massage in Korea, I don't even know the app. It's probably a Korean company. And if you want to go to Brazil, it's gonna be a different company. Mhmm. So it's not even possible for most people to know which app to use in which country. And so being able to aggregate all that demand is great. And these apps, these developers love it because we basically are their international expansion strategy. Another most of these companies, the hardest challenge they have is growing internationally. And we say, well, we can introduce your brand to a global audience. Well, now let's talk about locals. Yes. I don't if you're going to do a repeat service, we don't want to charge 15%, 20%. Mhmm. We're going to have to decide a business model. And maybe there is no commission or it's a very, very low commission. And maybe the value there is this, we make your life easier. And I don't I think this brings up a larger point, is we don't need to monetize every experience on Airbnb. The best thing is to have a great relationship, add value, and know that there's enough high value assets we can make money on, and we don't need to try to get every last dollar. We just really want people to love our service. And as you know, we generate quite a bit of free cash flow. We're one of the more profitable companies as free cash flow standpoint. So we are able to pass a lot of value on to customers.