Courtside Cuts: The Hairstylist Who Pampers Players at the U.S. Open

Julien Farel, with a regular clientele that includes Catherine Deneuve, Kate Moss, Brooke Shields, Sienna Miller, Liam Neeson, and countless other high-profilers, is among the most sought-after hairstylists today. His haircuts command a rate of US$1,250, and an appointment to see him is considered a coveted “get.”

But Farel’s role as the official stylist for the U.S. Open may be his biggest calling card, at least according to Farel himself, who’s had the gig since 2007.

“I approached the Open about having an onsite salon for players at the tournament, and it took me five years of pitching to finally get the contract,” Farel, a native of France, says during an interview at his eponymous salon at the Loews Regency New York hotel on Manhattan’s Upper East Side. (He has a second salon in Palm Beach, Fla.)

The position has Farel and seven employees creating a temporary salon at Arthur Ashe Stadium in Queens, N.Y., on the penthouse level in a secure area where players can freely walk around without being surrounded by spectators.

The roughly 250-square-foot space is a perk for the 500 or so stars who participate in the Open and offers haircuts, blow-dries, hairstyling, and makeup sessions, manicures and pedicures, Farel says. It debuts for the season two days before the tournament begins and is open from 9 a.m. to 6 p.m. throughout the event. The official dates for the 2024 U.S. Open are Aug. 26 to Sept. 8.

Over the years, his salon has hosted several hundred players, according to Farel, including Roger Federer, Serena Williams, Coco Gauff, and Novak Djokovic. Retired players, including Billie Jean King, whose moniker is part of the official name of the U.S. Open venue—the USTA Billie Jean King National Tennis Center—have also stopped in, Farel says.

“The players make appointments, but if an A-Lister like [Rafael] Nadal or Djokovic walks in, we try to make it work,” Farel says. “We’re busy all day for the entire Open.”

Patrick McEnroe, a retired professional player and an ESPN tennis commentator of the U.S. Open, is a client of Farel’s at his Manhattan salon. McEnroe says that Farel is also a friend, and he visits him at his Arthur Ashe salon whenever he can.

“It’s a hot spot and where all the players hang out and socialise,” McEnroe says. “They love coming to the salon, and it’s a great amenity for them.”

On-site salons for players at major tennis tournaments aren’t uncommon, but Farel was the first to introduce the concept to the U.S. Open, he says. (A representative for the U.S. Open is unable to confirm if this is the case.)

Farel’s experience as a tournament stylist was the impetus for bringing his salon to the Open.

“I worked at Roland-Garros in Paris at the French Open for a decade under my mentor Jacques Dessange, who had an on-site salon there,” Farel says. “I did haircuts and styling for all the big players at the time, including Pete Sampras, Andre Agassi, John McEnroe, and Monica Seles.”

Eric Butorac, the director of player relations for the U.S. Open, says that the tournament’s executives offer the salon as a benefit to players because they recognise that they’re under the public eye and need to look their best. “We understand they’re under scrutiny, and we understand the challenge of life on the road, where they’re living out of a suitcase,” Butorac says. “Julien’s salon is well-used and an amenity that isn’t related to a player’s tennis performance the way our fitness centre or nap rooms are.”

Croatian player Donna Vekic, who is fresh off winning a silver medal at the Olympics, takes full advantage of the perk. The star says that she frequents the salon throughout the tournament for blow dries, manicures, and pedicures and also visits the Manhattan location for colour jobs.

“It’s very convenient to have it at the stadium,” Vekic says. “I want to look and feel good when I’m playing.”

And if they don’t hit up the salon during the tournament, some players will stop by when the matches are finished, Farel says. “Many of the players are so busy during the Open that they only get time to pamper themselves when the tournament is over.”

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.

Courtside Cuts: The Hairstylist Who Pampers Players at the U.S. Open

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.