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CEO Brian Chesky says a service solving one of the more annoying parts of Airbnb stays is a 'sleeper hit'

Airbnb helped solve one of the more annoying aspects of staying in a rental home, and it looks like it could be paying off.

CEO Brian Chesky said on the company's third-quarter earnings call Thursday that one of the most popular new features offered as part of the app's push into experiences and services was one that he did not expect: luggage storage.

"What a sleeper hit," Chesky said when an analyst asked which of the newer services were most popular.

Chesky said he was giving a keynote speech where he was talking up a bunch of AI features, and that the mention of luggage storage got the biggest cheer. He also said it got a huge reaction when he posted about the new offering on Instagram, adding, "I finally felt cool on the internet."

Airbnb announced in May that it was partnering with Bounce, a global luggage storage platform, to help guests find places to store their bags before check-in or after checkout. After booking a trip, Airbnb guests can see luggage drop-off locations near their stay and receive a discounted rate in some cities.

The added service addresses an advantage that hotels, which commonly store guests' luggage before or after their stay, often have over rental homes.

"That's not the sexiest service," Chesky said of luggage storage, adding, "but I will say that what we've learned is that every service in and of itself has value."

The most popular new service "by far" has been car rentals, Chesky said, adding that the average car rental on the platform lasts longer than the average Airbnb stay.

He said both rental cars and luggage storage have been revenue drivers compared to some other services.

"But what all these services have in common is they make you more likely to want to book a home on Airbnb or a hotel on Airbnb," he said. "And so we have a pipeline of dozens of more services."

Airbnb posted an earnings beat on Thursday, with the stock jumping around 10% in after-hours trading.

Airbnb did not respond to a request for comment from Business Insider.

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Kelsey Vlamis

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Kelsey is a senior reporter for Business Insider, where she covers business and tech news as well as stories about travel, luxury, and consulting.Her feature story "Disaster at 18,200 feet" received awards from the New York Press Club and the North American Travel Journalists Association, as well as honorable mention from the Society of American Travel Writers. It was also included on Longreads' and Pocket's best of 2022 lists. She has also received an American Journalism Online Award for her coverage on missing and murdered Indigenous people in Wyoming.She's appeared on CBS, NPR, NBC, and other outlets to discuss her work. She previously worked on the world news desk at the BBC in London and received a master's in journalism from Northwestern University.She can be reached by email at [email protected] or via the encrypted-messaging app Signal @kelseyv.21.Popular storiesDisaster on Denali: Inside a 1,000-foot fall on America's highest peakThrifting is more popular than ever. It's also never been worse.Rolex wouldn't service the vintage watch my mom inherited. Watchmakers say it happens all the time.A tiny, invasive bug and the climate crisis are changing how guitars are made, and shifting the course of music historyThe tourism free-for-all is overGovernment-run boarding schools were founded to 'civilize' Native Americans. Hundreds of dead children remain buried in the schoolyard graves.Meet the Texas minister who helps fly dozens of women to New Mexico every month to get abortionsPeople are flocking to Colorado for the great outdoors, but the air pollution is so bad, it's forcing many to stay insideInside Kabul: An aid worker reveals the devastating chaos that erupted during the US exit from Afghanistan

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