How soon will Airbnb become another Expedia or Priceline?
Airbnb profits the idea of letting travelers rent a lodging facility or extra space from a local resident rather than a traditional hotel. While P2P (peer-to-peer) room-sharing services still remain to be Airbnb’s core business at this point, the company is aiming for something bigger --- Airbnb wants to be a travel enterprise.
If that’s the case, will Airbnb soon become another giant OTA (online travel agent) like Expedia or Priceline? I bet it would, just by looking at what Airbnb rolled out recently.
Beyond by Airbnb
In February 2018, Airbnb introduced two new brands called Airbnb Plus and Beyond by Airbnb. As part of the “Airbnb Experiences,” these two new brands are expected to provide travelers better and distinguishable experiences, as compared to those offered in a regular Airbnb listing. Listings of Airbnb Plus and Beyond by Airbnb will get certified by the company with multiple checkpoints, including hosts with outstanding guest service ratings (4.8 or above out of a 5-star rating) and other must-have facilities. With such a new tier branding strategy, Airbnb is hoping to provide customers a smoother booking experience as they browse through over 4.5 million listings for the ones that fit into their budget and expectations.
Airbnb adds hotels to its listings
Contrary to the common brief that Airbnb is taking the business from nearby hotels, it turns out hotels could possibly benefit from Airbnb under the condition that the hotels’ close-by Airbnb listings have a higher price point than the hotels themselves. More recently, Airbnb added real hotels to its listings, including more than 24,000 boutique hotels. This line of business has grown 520 percent over the past year. According to some hoteliers who have had their hotels listed on Airbnb, the room-sharing website is directing a good amount of traffic and business to their hotels. The Wall Street Journal considered Airbnb’s move of adding hotels into its listings as the company’s effort to boost its revenue and growth before the IPO.
Airbnb is teaming up local hotels to ease the check-in and check-out experience for travelers
According to The Mianichi, “Japan’s National Daily since 1922,” Hotel Suehiro (a local hotel in Tokyo) has formed a partnership with “minpaku,” also known as the Airbnb-styled Japanese room-sharing facilities. On one hand, Hotel Suehiro will perform the check-in, check-out, and other services typically found at a hotel’s Front Desk for the travelers staying in the nearby “minpaku.” On the other hand, the hotel is getting more customers to use the hotel’s spa.
Airbnb is building P2P residential-rental-ready properties
Airbnb is entering the real estate market with $200 million investment, contrary to the “asset-light” strategy adopted by hotels. The company is building Airbnb branded apartments in cities across the U.S. All units in the apartment are built with “Airbnb-friendly” designs, including keyless entry and shared common areas. Tenants in these apartments are allowed to rent their places on Airbnb for no more than 180 days a year.
Airbnb is rewarding its loyal customers too
According to Travel + Leisure, Airbnb will add a loyalty program --- Superguest for travelers to its existing loyalty program for hosts, Superhost. While the details for the Superguest program is yet to be announced, its pilot program will debut this summer for 10,000 members. The Superhost program, which has already been in place, gives qualified hosts more visibility on Airbnb.com and early access to the company’s new programs. Just like other travel reward or hotels’ loyalty programs, the Superguest program is expected to help Airbnb keep its users coming back for the services offered.
Note: This discussion is also available on MultiBriefs.com.