Airbnb Wants to Be an "Everything App." Should Investors Buy the Vision?

Key Points

• An "everything app" makes sense for Airbnb.

• Artificial intelligence is an important enabler for this app.

• Execution risk is real for the company.

• 10 stocks we like better than Airbnb ›

Airbnb (NASDAQ: ABNB) has come a long way since its early days as a scrappy start-up renting air mattresses on the floor. Today, it's a global lodging giant with millions of hosts and travelers, a brand that's practically synonymous with short-term rentals, and billions in annual free cash flow.

But even as the company has matured, its growth story faces pressure. Regulators in significant cities are tightening restrictions on rentals. Competitors like Booking Holdings and Expedia are expanding aggressively.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Against that backdrop, CEO Brian Chesky is betting on a bold new chapter: Transforming Airbnb into an "everything app" for travel and lifestyle, powered by artificial intelligence. The idea is ambitious. Whether it makes sense for investors depends on both the size of the opportunity and the risks of execution.

Image source: Getty Images.

Why an "everything app" makes sense

At its core, the strategy is about diversification. Right now, nearly all of Airbnb's revenue comes from accommodations. That's profitable, but it's facing challenges in areas like regulation and competition. By branching into other parts of the travel journey, Airbnb expands its addressable market well beyond lodging.

The tech company has earmarked $200 million to $250 million to relaunch its platform and expand into lifestyle services. Think cooking classes, wellness treatments, personal trainers, or private chefs. In theory, travelers won't just book a stay through Airbnb; they could also plan and purchase activities while they're there.

Artificial intelligence is the other piece of the puzzle. Chesky envisions an app where AI travel agents can plan trips end-to-end -- recommending homes, arranging activities, and even booking services automatically. Early signs suggest that this could help. Airbnb's AI chatbots have already reduced human customer support contacts by about 15%. The long-term goal is to make Airbnb the single app a traveler opens before and during a trip, not just a booking tool they use once and forget.

If it works, this will create two crucial advantages. First, it would make Airbnb's ecosystem much stickier -- customers would return more often and spend more per trip. Second, it would provide a strategic hedge. As regulators restrict rentals in places like New York or Dublin, Airbnb would have other revenue streams to fall back on.

For investors, this is the bull case: The "everything app" dramatically increases engagement, expands the company's market, and strengthens its competitive position.

The risks and challenges of this strategy

As exciting as it sounds, there are reasons to be cautious. Airbnb has tried some of this before. Experiences first launched in 2016 with great fanfare, but it never really gained enough traction to move the needle financially. Part of the problem was supply. Not every host can also be a tour guide, chef, or trainer. Building and curating a reliable base of providers takes time.

Competition is another obstacle. Airbnb won't be entering a vacuum. OpenTable dominates restaurant reservations. TripAdvisor and Klook are strong in tours and attractions. ClassPass already connects customers to wellness services. Each vertical has entrenched specialists, meaning Airbnb would have to spend heavily to carve out a share.

There's also a question of consumer behavior. Today, most travelers start planning on Google, or they go to Booking.com and Expedia for bundled travel. Convincing them to shift their habits and use Airbnb for everything may not be easy.

Finally, investors should consider the effect of such diversification on margins and focus. Airbnb's core rental business benefits from a high take rate. Add-on services may not be as lucrative. Besides, expanding into multiple categories could dilute profitability and distract management's attention from its core rental business.

What does it mean for investors?

So is this a smart move for investors? Strategically, diversifying into experiences and services makes sense. It broadens the market, deepens engagement, and positions Airbnb to capture more of the travel wallet.

But investors shouldn't forget that the company has a mixed track record outside its core lodging marketplace. Execution, adoption, and differentiation will be the deciding factors. If Airbnb can crack supply growth, build AI tools that truly simplify travel, and convince customers to make it their go-to app, the upside could be meaningful. If not, it risks being a costly distraction from strengthening the business it already has.

Long-term investors can stay cautiously optimistic, but don't buy the vision without watching the results.

Should you invest $1,000 in Airbnb right now?

Before you buy stock in Airbnb, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Airbnb wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $670,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,023,752!*

Now, it’s worth noting Stock Advisor’s total average return is 1,052% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Booking Holdings, and Tripadvisor. The Motley Fool has a disclosure policy.