Airbnb target 1 mn bookings in 2018 as its 'Experiences' service expands

Airbnb Inc's year-old tours and activities business is booking tens of thousands of travellers every month and is likely to be profitable late next year, the company said on Tuesday, highlighting success in its efforts to grow beyond renting rooms and homes.

More than a year ago, Airbnb announced a broad effort to become a full-fledged travel company, adding to its home-renting business an assortment of new services such as excursions to see local attractions and restaurant reservations.

The expansion is part of Airbnb's efforts to diversify its revenue sources amid global regulatory pressures. In some cities, it has been forced to reel in its core business, in which people rent out spare rooms or entire apartments or houses to travellers. Airbnb is betting that revenue from its new travel services will eventually eclipse its proceeds from home rentals.

The company now expects its "Experiences" service, which travellers can use to book guided tours or activities hosted by a local resident, will by the second quarter be on track to have 1 million guest bookings in a year. That number assumes no growth in the business, Airbnb said, making it a conservative estimate.