By Dominique Patton PARIS (Reuters) -Airbnb said on Thursday a new partnership with the Tour de France will boost its rental business across rural France, as it seeks to build on the success of last
Airbnb Partners with Tour de France to Enhance French Market Presence
By Dominique Patton
PARIS (Reuters) -Airbnb said on Thursday a new partnership with the Tour de France will boost its rental business across rural France, as it seeks to build on the success of last year's Paris Olympics at a time of lower demand in the U.S.
The vacation rental company this month forecast softening demand in its top market as an erratic U.S. trade policy hurts consumer sentiment.
Number two market France, however, where locals account for about 70% of bookings, is seeing "very healthy" growth, maybe even faster than the U.S., co-founder and CEO Brian Chesky said in an interview.
The three-year contract with the world's most prestigious cycling race will see Airbnb promote rentals along the 3,339 kilometre route, as well as related experiences such as rides with former cyclists, as part of a global expansion strategy.
The partnership comes after the platform recorded 700,000 bookings during the four-week period of the Olympic Games, exceeding expectations.
It has maintained the roughly 120,000 listings reached in the French capital last year but says it can do more in less populated areas across the country, including many of the stops along the Tour de France.
The push comes even as cities such as Biarritz in France's southwest are restricting listings in response to soaring house prices.
"When Airbnbs are restricted somewhere, it does have an impact on the business. Obviously, it doesn't grow as fast. And then the other outcome...is that prices typically go up because a lot of people try to stay in a few homes or a few hotels," Chesky said.
In neighbouring Spain, Airbnb is appealing against a government order to withdraw more than 65,000 listings for holiday rentals that were alleged to have violated rules, part of a general crackdown on a business blamed for contributing to the country's housing crisis.
Airbnb has said it believes the ministry does not have the authority to make rulings over short-term rentals.
More brand partnerships could follow the deal with the Tour de France, especially for luxury experiences, said Chesky.
"Wealthy people like to spend money on experiences more than even things," he said.
For now, the company is still building up its new services, receiving many thousands of applications a week from people who want to sell a service on the platform.
Chesky, who has booked a chef at his Paris Airbnb, is among those testing the new offer but says it will take time to build up.
(Reporting by Dominique Patton, editing by Ed Osmond)
