Airbnb CEO calls luggage storage a 'sleeper hit' service

Chesky mentioned that the luggage storage service garnered a significant positive reaction when he discussed it during a keynote speech and posted about it on Instagram, indicating its unexpected popularity. This service addresses a common inconvenience for travelers by allowing them to store their bags before check-in or after check-out, a convenience often available at hotels but not typically at rental homes.

While car rentals were cited as the most popular new service by far, Chesky emphasized that both car rentals and luggage storage are proving to be valuable revenue drivers. He explained that these services enhance the overall value proposition of booking an Airbnb, making guests more likely to choose the platform. The company has a pipeline of dozens of additional services planned.

Airbnb's stock saw a jump of approximately 10% in after-hours trading following the announcement of its third-quarter earnings beat.