Douglas Anmuth: Okay, thank you.
Operator: And our next question comes from Stephen Ju at Crédit Suisse.
Stephen Ju: Okay, thank you. So Brian, the shareholder letter is teasing us a little bit with the commentary about Expand Beyond the Core, but there really isn’t much there beyond the statement itself. So in addition to experiences, and please share any updates in terms of what you may be doing there, but what could be some of these new directions you might be thinking about that might be products and services for either the host or the consumer. Thanks.
Brian Chesky: Hey, Steven, thanks for the question. It’s one of my favorite questions. What are we going to do next? Let me just start and back up. I just want to recap today how I think about this whole space. Before we talk about Expand Beyond the Core, I just want to say one thing about the Core, which is that the hotel industry is more than about 10 times the size of Airbnb. And I think that almost anyone that stays in a hotel could consider staying in an Airbnb. I mean, the spaces are one of a kind. They’re often better value, but we need to make sure that we continue to drive value. And I think the next big focus for Airbnb is reliability. We can make Airbnb even nearly as reliable in many markets and hotels. I think you’re going to open up a whole new generation of travelers to Airbnb.
So I think there’s a lot more runway just in the core business. I think we’re only scratching the surface, and that’s partly why we are so focused on perfecting our core. Now, beyond that, let’s talk about what’s next, starting from the most nearest adjacencies out international. One of the things we’ve seen is that Airbnb has a lot of, we’ve got a lot of scale in the United States, and we’ve got a lot of scale in top markets in Europe, but actually, Airbnb is under-penetrated in most countries around the world. Just to give you an example, a couple years ago, a few years ago, we were concerned about the lack of penetration we had in Germany. We were also pretty nascent in Brazil. Since the beginning of the pandemic, Brazil is more than double the size, and Germany is more than 60% larger.
And Germany is on track now to be one of the largest countries in the world on Airbnb. So we’re going to take that playbook, and we’re going to bring it to Asia, and we’re starting with Japan and Korea. But Asia Pacific is a frontier. It’s a huge opportunity for growth. I think that is just one of many markets, including Latin America. And the other thing I should point out within Europe is, beyond UK, beyond France, beyond some of the really top markets, there’s a lot of countries in Europe where we’re not actually that penetrated. So there’s a lot of international expansion. Next would be longer stays. Before the pandemic, only 13% of our business was for monthly stays. Now it’s 18%, and it’s stable, and we don’t think it’s going down. In fact, I think this is a huge opportunity.
I think all you have to believe is Zoom is here to stay to believe flexibility is here to stay. If you believe that, you’re going to see a lot more people either living nominally or some people traveling for the summer, going away for the winter, or extend to weekends, which is a whole new category between travel and housing. So I think that is probably one of the most underrated markets in Airbnb. You have experiences. I thought experiences were going to have a breakout before the pandemic, and instead we had to put them on hold. But the thing we’ve learned is that people love experiences. 95% of reviews that are left for experiences end in a five-star review. And for our core business homes, it’s 84%. So that means that people on a statistical basis like experience even more than homes.
And so we think that product is being – is ready to scale. And so I’ve been spending a lot of time. I think you’re going to see some growth in the years to come. And I’ll just add a couple more things. And let me preface this by saying I don’t usually like to foreshadow new things before we launch them. I got to get you to tune into our releases, which we do every May and November. But there’s a lot of service opportunities on guests and hosts. I think that, whether it’s Eats, Amazon, or Etsy, or Alibaba, they’ve shown there’s an entire suite of services that you can offer for hosts. I know I get a lot of questions about paid placement, which is absolutely on the table. But there’s many other services as well for hosts. And then in guest services, think about all the services you could get in a hotel or at a resort.
And then think of all the services that a hotel couldn’t maybe afford to offer because they’re at sub-scale. But Airbnb, in many markets, we’ve got a lot of critical scale. So these are just some of the – I would just even call it near-term opportunities. But we do have some pretty big ideas. I think AI is basically like a once-in-a-generation platform shift, probably bigger than the shift to mobile, probably more akin to something like the Internet as far as what it can do for new businesses and new business opportunities. And I think that it is a huge opportunity for us to really be in the leading edge of innovation. So that’s what we’re doing. I’m very, very excited about it. And I will just say that we made a lot of progress the last three years, building a strong business, being profitable.
