Airbnb, facing stricter local regulations on short-term rentals, announced on Wednesday (20) that it is adding boutique hotels, car rentals, and grocery delivery to its app, aiming to become a full travel platform.
This expansion marks the latest step in Airbnb’s effort to capture a larger share of travel spending, currently dominated by competitors such as Booking.com and Expedia.
This evolution, 18 years after the company’s humble beginnings in San Francisco, reflects Airbnb’s response to increasingly strict short-term rental regulations in key markets.
Regulatory challenges and new features
In December, Spain fined the company 65 million euros (75 million dollars) over more than 65,000 non-compliant listings, and Barcelona decided not to renew thousands of rental licenses when they expire in 2028.
New York has banned almost all private short-term rentals since 2023, while Paris intensified its crackdown on illegal listings in 2026.
“Travel should not only be convenient. It should be meaningful,” said CEO Brian Chesky. “The best trips help you explore, learn, and return home a little different than when you left.”
The updated app includes grocery delivery via Instacart in more than 25 U.S. cities, along with airport and train station transfers and luggage storage services in more than 160 cities worldwide.
The platform will also offer car rentals, although partners have not yet been announced. The app will also include AI features, including a virtual support assistant available in 11 languages.
Airbnb reported revenue of 2.68 billion dollars in Q1 2026, an 18% increase year over year.
Source: JT