Airbnb enhanced its home review and rating page after seeing that too many homes weren't meeting guest expectations.
The company rolled out app upgrades Wednesday that focus, in large part, on making the page more thorough and easier to read, so users have a better sense of what to expect. Airbnb admitted that many people prefer hotels because they know what they're going to get.
Previously, its ratings page provided guests with limited information, Airbnb said. It was also hard for guests to find reviews that were relevant to them.
AIRBNB CRACKS DOWN ON FAKE LISTINGS
"People often describe checking into an Airbnb as a ‘moment of truth’ – when you find out if the home you booked meets your expectations," CEO Brian Chesky said in a statement. "Too often, it doesn’t."
With Airbnb's redesigned ratings page, reviews will have more information about the reviewer and their trip such as their length of stay, where they are from and who they traveled with. Users will also be able to sort reviews by recency or rating. They will also be able to better read the number of positive and negative reviews a home has received through a chart that shows the distribution of reviews from one to five stars.
Airbnb also launched a new tab called Guest Favorites, which consists of 2 million most-loved homes on Airbnb based on ratings, reviews and reliability data, according to the company.
"We had all that data but hadn't put it to use," Jay Carney, Airbnb global head of policy and communications, told FOX Business. "What this allowed us to do was basically address the reliability question."
AIRBNB PROFIT JUMPS, BOOKINGS SLOW AS COMPANY NUDGES HOSTS TO LOWER PRICES
A new feature called the Listings Tab is a set of tools that lets hosts showcase the specific details about their listing such as amenities and sleeping arrangements. They can also create an AI-powered photo tour that organizes photos by room and helps users understand a home's layout.
In 2021, the company started rolling out product launches twice a year to address the feedback it received on how to improve Airbnb, which reported its first profitable full year in 2022.
It's made more than 350 new features and upgrades to its core service in order to enhance user experience and boost usage.
Prices, though, are still a big concern for users. Among the app upgrades, Airbnb made it easier for hosts to track local pricing trends, so they can adjust their pricing in line with the market. Prices host set will now show service fees, so they can see exactly what guests are paying.
"Our hosts who are out there in the world are often just individuals or families. They don't necessarily have access to that data or know how to find it," Carney said. "If we help them with that, I think we'll keep prices reasonable and affordable."
Pricing tools that Airbnb previously launched already helped with keeping costs reasonable, he noted.
But its latest upgrades come on the heels of concerns regarding macroeconomic conditions and geopolitical conflicts that could impact business.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"We are seeing greater volatility early in Q4, and are closely monitoring macroeconomic trends and geopolitical conflicts that may impact travel demand," Airbnb said in a shareholder letter last week.
Revenue rose 18% to $3.4 billion in Airbnb's third quarter, slightly above analyst expectations.
Bookings during the period rose 14% year over year to more than 113 million. Airbnb expects that nights booked will "moderate" relative to the third quarter.
The company forecast fourth-quarter revenue of $2.13 billion to $2.17 billion, weaker than analysts' estimates of $2.18 billion.
