Airbnb Inc. is now set in for developing a service which will be able to book air travel tickets. Although the product is in early development state, the home-rental start-up looks to compete with Priceline Group Inc. and Expedia Inc. for more of people’s online travel spending. Notably, Expedia purchased the Airbnb competitor HomeAway for $3.9 billion in 2015.
Airbnb is considering various routes to break into the business and might acquire an online travel agency or license data from a provider such as Amadeus IT Group SA or Sabre Corp., said people who are familiar with this plan. Inside sources say the project is named ‘Flights’ within the company.
One Airbnb investor, who has lots of airline experience, speculated that Airbnb could use flights like Kayak does as a lead-generator for its lodging products and as a way to have greater sway over a traveller’s entire budget.
Nick Papas, a spokesperson for Airbnb did not comment on the flight-booking plans however, there are talks which probes that Airbnb aims to get ‘Flights’ off the ground before it pursues an initial public offering (which is most likely to be due in the next 18 months).
Airbnb created a new era in the travel industry eight years ago where they generated revenue by lending people stay in strangers’ home. Now, the company is hoping to find new sources of revenue as it matures.
Moving into the business of flight booking might just be another step closer to the one-stop travel trend. It might just also slam Priceline and Expedia which operate the largest sites for flight searches and bookings.
Airbnb CEO Brian Chesky gave a presentation last month in Los Angeles, where he showed off new designs for the company’s website and apps. in one of the images, there was a small airplane graphic in a section called Trip Itinerary and would possibly where the company intends to provide suggestions for the best airfare options. It would be based on price, travel time and expected weather conditions, came from the people who are known to the plan.
