Checked-In and Checked-Out

Growth and headwinds for the travel company

Since its founding in 2008, Airbnb has disrupted real estate markets, expanded accommodation options, and created tension among neighbors and guests alike. We use insights derived from social intelligence provided by Infegy Atlas to examine Airbnb's expansion into smaller, more affordable states and neighborhoods. We will focus on identifying the brand's headwinds, using customer complaints around exorbitant cleaning fees as our key example. By proactively tackling these consumer satisfaction challenges, Airbnb can continue to grow in these smaller markets.

Airbnb in the news

Airbnb made headlines last week for its expansion into lesser-known markets. The company published a blog, which Axios then picked up on June 23, 2023. Initially, Airbnb gained popularity in expensive coastal cities like New York, Los Angeles, and San Francisco, offering tourists an alternative to costly hotels. This regional expansion represents a stark change from that prior strategy, as Airbnb prioritizes expansion into smaller, less expensive markets. Airbnb prioritizes expansion into these lower-cost areas because they do not traditionally have hotels. Airbnb notes this is a giant market, with hosts in areas with no hotels earning $10.5 billion in 2022 alone.

Geographic expansion to less expensive markets

To confirm Airbnb's claim, we use Infegy Atlas's geography tab, which relies on aggregated geotagged posts. By sorting the data by universe size, we observed a decline in post volume in the predictable, large coastal cities, indicating social saturation where Airbnb accommodations have become ingrained in the city's fabric.

However, when we sorted by growth, we discovered substantial post volume and a significant increase in smaller communities like Wichita Falls, Oklahoma, and Terre Haute, Indiana. For example, Airbnb's post volume in Wichita Falls grew by 277% within the last three years. In short, Infegy's social listening dataset supports Airbnb's assertion that the brand is becoming more dispersed across American cities.

Airbnb faces consumer satisfaction headwinds

While Airbnb's expansion may appear positive, it overlooks underlying concerns regarding its long-term viability. We looked at negative topics derived from aggregated social media posts to delve deeper into these concerns. We will delve into one such case: the issue of "cleaning fees," which has generated frustration among consumers due to hidden expenses and increased costs. "Fees" is the most prominent negative topic within our analysis, with the more specific "cleaning fees" not far behind.

Upset consumers around cleaning fees

Initially marketed as a cost-effective alternative to hotels, Airbnb listings often appear cheaper at first glance. However, when users proceed to check out, they are confronted with a plethora of service fees, convenience fees, and, most annoying of all, cleaning fees. A viral tweet highlighting a $200 cleaning fee noted, "Also Airbnb: please clean the entire house upon leaving."

Over the past three years, "cleaning fees" have been mentioned within the Airbnb conversation a staggering 232,275 times. Consumers in an inflationary environment seek to save as much money as possible. The cost savings that Airbnb previously provided were a significant factor in its success. These expensive cleaning fees threaten to destroy that competitive advantage.

Moreover, there is evidence within this conversation that users are contemplating a return to hotels. We tracked topics around people mentioning cleaning fees and found that the word "hotel" was the second most prominent within our dataset.