Want to make your time off go further? Take advantage of remote work to set up in a holiday location for a week, even a month. The risk: missing the point of traveling in the first place.
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ASHLEY SCHWARTAU escaped to a Mexican beach town just two weeks after starting a new job for a Chicago-based insurance company. It’s not that Schwartau, 38, is a late-blooming spring breaker. She and her husband both work remotely, so when winter arrived at home in Nashville, Tenn., the pair decided to clock in from a vacation rental with a pool in Playa del Carmen.
For the next four weeks, the couple took calls from their temporary home, while their 4-year-old son attended a bilingual preschool whose $350 monthly tuition would be implausible back in Nashville. After hours, the trio played at the nearby beach, lounged poolside or grazed at neighbourhood taco stands. Following a weeklong-vacation chaser at month’s end, they returned to Tennessee restored. “It’s hard for working parents to truly find moments of relaxation, and that was one of the most relaxing trips we’ve ever taken,” said Schwartau, who documented the trip on her blog to inspire others looking to expand their own definitions of remote work.
Unlike some full-time “digital nomads”—who skew young, male and child-free—Schwartau has no plans to permanently swap home life for stints in Lisbon or Bali. Instead, Schwartau used her hybrid “workcation” to capitalise on a remote-friendly job and temporarily set up shop away from home’s routines and responsibilities.
The trip also let her save some paid time off while still traveling, a strategy that appeals to workers in the U.S., where the average private-sector job affords just 11 days off after a year. With employers increasingly offering flexible work options, workcations seem to be a pandemic-accelerated trend with staying power. A 2023 study by Deloitte showed that one in five travelers planned to do some work on their primary summer trips, with many using flexible policies to eke out additional time away.
Still, obstacles abound. Jet lag can sap work output, sand will destroy your computer and dutifully clocking hours a block from a beach invites intense FOMO. It takes finesse to make workcations work—here’s how to pull one off.
Going too far afield—or heading in the wrong direction—can tug routines out of alignment. Dan Hammel of Benicia, Calif., works for a tech concern that follows Central time and offers staffers two annual work-from-anywhere weeks. Last fall, Hammel spent one off-kilter week working from the Italian city of Bologna. “My hours in Europe were probably about 4 p.m. to midnight,” he said of the need to align with his stateside colleagues’ workdays. After days spent touring nearby Modena and Parma with his wife, Hammel found the schedule challenging. “I like to be in bed around 10,” said Hammel, 45.
To avoid red-eye marathons, follow your natural sleep pattern to the optimal time zone. For Hammel, that meant Maui, where he worked remotely in May. “I would get up at 5 a.m. and would be done around noon,” he said. “We would have the whole rest of the day to nap, relax for a little bit after my workday, hit the beach, go to dinner.”
Remote work might conjure Instagram shots of laptops lolling on beach chairs, but such scenes don’t translate to meaningful productivity. Deloitte found that more than half of all travellers look for work-friendly spaces when booking accommodation. William DeSousa, 73, a public-relations professional from Osterville, Mass., craves more space than hotel rooms offer: He’s a villa guy.
For 16 years, he’s spent a month working from Greece with his husband and has learned that walls do wonders. “We both need to be on phones, or be on Zoom calls,” he said. “I think separate workspaces work best for couples.” This year, the pair will enjoy the beach-and-taverna circuit while clocking in from villas in Santorini and Crete.
Other travelers opt for hotels—such as Mama Shelter Shoreditch London and the Hoxton Chicago—with dedicated co-working areas and brisk internet. Whatever you decide, ask for bandwidth details before booking: The website Global Nomad Guide, which advises remote workers, recommends download speeds of at least 50 Mbps.
Many remote workers are loath to shut devices down, which can lead to post-workcation regrets. Commit in advance to logging off, said Jaime Kurtz, professor of psychology at James Madison University and author of “The Happy Traveler: Unpacking the Secrets of Better Vacations.” Tell yourself, “‘I’m going to work this many hours a day, and then I will go out and take advantage of the place,’” Kurtz said. She suggested travelers seek experiences that sideline devices completely, such as riding a bike or joining a food tour.
And while remote work can help PTO go farther, don’t mistake working getaways for more truly replenishing vacations. That’s why many workcationers, including Schwartau and Hammel, follow remote stints with actual time off, using working trips as a launchpad for dedicated travel time.
Jessica de Bloom, a professor of psychology at the University of Groningen in the Netherlands, who studies the blurring frontiers between work and leisure time, considers true disconnection essential to thriving. A request for comment for this story prompted an out-of-office message, suggesting de Bloom lives by her own findings. “I am currently enjoying a vacation,” the auto-response read. “I choose not to work and check my emails, because research showed that working during holidays can be detrimental for my health.”
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AI-powered travel agents are challenging online booking platforms, but Airbnb’s exclusive listings and direct customer relationships could give it an edge. Its next challenge: turning repeat guests into loyal customers through stronger rewards and innovation.
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AI agents like Muse can already find you the cheapest hotel room in Paris. But they can’t locate a cheaper version of that Catskills cabin you’ve been eyeing, because it might only be available on Airbnb ABNB -1.43%decrease.
Investors should pay attention to that distinction. When Meta Platforms META 3.38%increase launched its Muse agent last month, travel stocks including Booking Holdings BKNG -1.19%decrease, Expedia and Airbnb all fell sharply.
Airbnb, though, has a real chance to emerge as a winner from the upheaval. The catch: Its stock already reflects above-industry growth. To justify its valuation, Airbnb will need to turn repeat customers into loyal ones.
Online travel companies make much of their money by simplifying search and collecting fees on bookings. AI agents threaten that model.
But not all travel marketplaces are equally exposed. Booking and Expedia largely sell hotel rooms that travelers can also book directly or through competing sites. If an agent can find the same room elsewhere, it has little reason to favor either Booking or Expedia.
Booking and Expedia also sell sponsored listings that steer travelers toward particular properties. Wells Fargo estimates those will account for about 8% of Expedia’s revenue and a much higher percentage of profit next year.
Airbnb has more ways to adapt. More than half its listings are available only on its platform, and more than 90% of its traffic comes directly to its app or website.
The customer relationship doesn’t end after booking, either. Bernstein analyst Richard Clarke notes that 90% of Airbnb guests go on to message their hosts about arrival times, keys or local taxes, giving Airbnb a connection to both sides of the transaction.
How the companies have responded to the possible agentic future is telling.
Expedia quickly signed on as a Muse partner. Airbnb hasn’t, and Chief Executive Brian Chesky says AI chatbots have so far been a boon, sending customers to Airbnb’s website.
Chatbots might work for buying paper towels, he quipped at a Skift conference last month, but people enjoy planning trips. He argued that browsing dozens of homes isn’t something a text-based chatbot is well suited for.
Still, the AI jitters arrived just as Airbnb was persuading investors it deserved its pricey multiple. For years after its 2020 initial public offering, the stock—which trades around 25 to 30 times forward earnings—went nowhere. Investors saw a mature operator trading at a growth premium.
This year, Airbnb growth seems to be accelerating. The stock jumped in August after the company raised its full-year revenue-growth guidance with its second-quarter results. Wells Fargo analyst Ken Gawrelski credits a run of product improvements under a revamped leadership team.
Among the changes: letting guests reserve now and pay later, adding hotels, and a redesigned home page and app. Investors were also betting on what comes next, including thousands more hotels, car rentals and, eventually, advertising.
The irony is that some of those growth drivers push Airbnb closer to the kind of business Booking and Expedia run—the kind of business AI agents could threaten. Even if AI agents capture a large share of travel planning and booking, Airbnb would capture the demand. But it and others would slowly lose control over how customers find and choose properties.
That would undermine the advertising opportunity investors are counting on. The bigger point for Airbnb and other marketplaces is that losing control of customer acquisition could mean surrendering some of their pricing power and margins.
To bulletproof itself, Airbnb might look to another e-commerce giant that has so far kept AI agents at arm’s length: Amazon.
Like Amazon, Airbnb has a loyal customer base and hard-to-match supply. But it has nothing like Prime membership to make customers think twice before taking their business elsewhere.
That is where loyalty comes in. Business travelers stick with Hilton or Marriott because enough nights earn them perks. Leisure travelers rarely accumulate stays with one chain. Airbnb has millions of listings and plenty of repeat customers, but no broad rewards program. It has begun experimenting with credits on hotel stays, but it should make loyalty a priority, not just a promotion.
Airbnb also plans to launch its own AI agent next year. But travelers using an agent might still want it to search Airbnb, Vrbo, Booking and hotel websites alike, rather than limit itself to one company’s inventory.
Eventually, Airbnb might have to strike deals with agent makers, using its unique homes as leverage to negotiate favorable terms, says Gawrelski. Such deals, along with rewards for loyal guests, could over the long term eat into the company’s roughly 13% take rate, he adds. But if they bring in enough additional bookings, the trade-off could be worthwhile.
History offers a reason not to panic. The shift from desktop to mobile unsettled investors in Alphabet and Amazon, but both emerged as major beneficiaries. Companies with valuable assets can come out of a platform shift stronger, if they adapt quickly enough.
Airbnb has homes the bots can’t easily replace. Now it needs to give guests a reason to insist on booking them there.
