Launched in 2019, Airbnb Luxe marks Airbnb’s entry into the ultra-luxury vacation rental market, following the acquisition of Luxury Retreats in 2017.
This move expanded Airbnb’s offerings beyond budget and mid-range accommodations to satisfy discerning travelers seeking exceptional experiences. Airbnb Luxe is the platform dedicated to luxury and features a curated portfolio of more than 2,000 globally selected homes. All of them are evaluated on more than 300 criteria to ensure the highest level of luxury in terms of design, service, and comfort.
Airbnb Luxe stands out for its attention to detail. Properties range from exclusive villas to private islands, historic castles and modern penthouses. These homes include high-quality materials, unique architectural elements, and premium amenities such as personal chefs, dedicated staff, and tailored activities such as private coaches or massage therapists.
A distinctive aspect of Airbnb Luxe is the presence of a personal trip designer, who curates every aspect of the stay, from personalized local experiences to logistics, to make the luxury trip truly custom.
Investing in Luxury
Airbnb was founded in 2008 by Brian Chesky and Joe Gebbia. They decided to place air mattresses in their San Francisco apartment and make them available to visitors. Since then, the company has come a long way with a series of innovations.
- In February 2018, it introduced the Airbnb Plus level, which ensures that rental properties are inspected and chosen for design, cleanliness, and host responsiveness.
- In 2019, with the arrival of Airbnb Luxe the level of offerings is raised, offering high standards of quality and exceptional design.
Why this positioning choice? In 2018, the company recorded that bookings on the platform for accommodations costing at least $1,000 per night increased by more than 60 percent. And so, with Luxe, Airbnb aims to capitalize on the growing luxury travel sector by catering to the needs of a tourism industry focused on unique and transformative experiences.
The Luxury Short-Term Rentals Market
The luxury travel business, with a global market value of $1.38 billion in 2023 and a projected compound annual growth rate (CAGR) of 7.6 percent from 2024 to 2030, is growing rapidly, and platforms like Airbnb Luxe are capitalizing on the trend.
Luxe responds to the desires of travelers who want more than just luxury: they seek immersive and unique experiences that connect them deeply with the destination.
But when is it that a property is classified as luxury? Find out in this article.
Examples such as Fleming Villa in Jamaica, where Ian Fleming wrote his famous spy novels, and Nukutepipi, a private atoll in French Polynesia curated by the founder of Cirque du Soleil, show how these stays offer total exclusivity and a deep connection to history or innovation in luxury. Te Kahu, which won New Zealand’s Home of the Year award in 2010, is also part of Airbnb Luxe.
There are over 300 requirements to be in the Luxe category, such as fine finishes or top-notch appliances.
With homes that are destinations in themselves, travelers can stay in incredible places, including award-winning homes in New Zealand and South Africa, castles in France, and breathtaking historic villas in Tuscany.
In this popular slice of the market dedicated to luxury tourism, Airbnb is not alone. Competitors also include HomeAway and Oliver’s Travels, as well as Marriott, which has launched the Homes & Villas by Marriott International rental portal, and Four Seasons Hotels & Resorts that recently announced Four Seasons Private Retreats, a collection of more than 750 luxury villas and homes for rent in 21 destinations around the world.
Luxe and the Connection with Real Estate
From a luxury real estate perspective, Airbnb Luxe highlights a growing interest in exclusive properties as a form of investment. Many of the residences listed on Luxe are owned by private investors taking advantage of the increased demand for luxury stays. Villas, estates, and private islands now generate significant revenue through platforms such as Airbnb Luxe, offering a new dimension to luxury real estate investments.
We also explored the topic of short-term luxury rentals in Italy in one of our Dreamer Talks with Marco Billiani. A business of more than 11 billion euros, offering very high rents, and growing interest from investors.
Luxury properties intended for this type of rental must have specific characteristics: fine finishes, high-quality amenities, and a prime location. The most sought-after properties are often unique, with historic frescoes or artwork, offering an exclusive and personalized experience.
By promoting these properties to discerning travelers, Luxe opens favorable opportunities for those interested in the high-end real estate market. Properties such as Castello di Vicarello in Tuscany or Casa Koko in Mexico not only generate revenue, but also enhance the prestige of owning a luxury estate. With the growing global shift toward experiential tourism, tourism-related luxury real estate is becoming an even more attractive opportunity for those seeking to diversify their investments.
Airbnb Luxe represents a bold step into the world of ultra-luxury travel. It satisfies the needs of a sophisticated clientele that seeks not just exclusive accommodations, but personalized and transformative experiences.
For luxury property owners, platforms like Airbnb Luxe offer a promising opportunity for both short-term revenue and long-term investment value enhancement.
Did you know that in Italy, the introduction of the Flat Tax has made Italian real estate attractive in the eyes of the world? Read more here.
Luxury Travel and Luxury Villas: the Perfect Match for Investment
Luxurious travel is a fast-growing segment in the global tourism market, fueled by the demand for unique and tailored experiences. Luxury travelers are not simply looking for exclusive destinations, but want to experience moments that combine comfort, privacy, culture and authentic immersion in the land. This has led to a boom in private resorts, villas with personalized services and exclusive destinations.
Industry trends include tailor-made experiences, wellness retreats, high-end gastronomy and stays in historic residences or sustainable eco-lodges.
Luxury real estate is the natural complement to luxury travel. Exclusive villas, vineyard estates, apartments in iconic cities or private resorts offer very attractive investment opportunities for high-income buyers. Investors see luxury real estate not only as a way to diversify portfolios, but also as a form of status, as well as a high-quality housing solution and potential business.
Florence is a favorite destination for tourists and investors, and the opportunities for returns are really high. Read more here.
Why Invest in Luxury Real Estate?
Luxury real estate is typically a thriving sector from an investment perspective. Iconic destinations such as Florence maintain a high value due to the constant demand for exclusive properties.
With the rise of platforms like Airbnb Luxe and new workation trends (working remotely in exclusive locations), more and more travelers prefer stays in luxury homes over hotels, making these properties a stable source of income.
In addition, investing in luxury real estate allows not only for financial returns, but also for the revaluation of historic properties or properties set in valuable landscape settings, creating long-term value. Owning an exclusive villa or resort in a coveted location is not only a financial investment, but also an emotional one. Luxury properties offer unrepeatable experiences and private spaces for exclusive vacations or events, becoming true symbols of a prestigious lifestyle.
The combination of luxury travel and luxury real estate represents a unique investment opportunity that goes beyond mere real estate ownership, transforming the concept of property into a life experience.
Because of both the potential for profitability and increased asset value, investing in this sector is a forward-looking choice for those seeking stability, status, and long-term returns.
How about finding the perfect property? Browse our portfolio and find the right luxury home for you.
