Skip to main content

Can hotels stop the growth of Airbnb?

As a substitute for the traditional lodging facilities, including hotels, hostels and short-term rentals, the increasing supply of Airbnb properties is no doubt making an impact on hotels' bottom lines. So, can hotels stop the growth of Airbnb? 

Hotels' strategies for fighting against Airbnb

#Airbnb #Hotels #Competition - http://bit.ly/kwok051117 
Hotels are working hard to fight against the competition from Airbnb, other room-sharing websites and online travel agents (OTAs). For example:
  • Hotels are encouraging travelers to search and make reservations directly on the hotels' websites by offering special discounts if they book directly, even though this strategy might possibly push Airbnb and OTAs to work closely together against hotels.
  • Hotels are reinventing loyalty programs to win more new travelers and, at the same time, keep their repeat customers.
  • More hotels are adding local flavors to lure travelersIf travelers choose Airbnb over hotels because they want to gain some unique experience as a local resident, this strategy may work particularly well.
  • Hotels are responding to the shifting needs of customers by introducing new brands and through acquisitions. The merger of Marriott and Starwood is a good example.
  • Most recently, hotels are planning for a lobbying push over the Priceline-Expedia "monopoly," in addition to the legislation push toward Airbnb. Hotels want to play a "fair" game in the competition with Airbnb and OTAs. So far, hotels have successfully convinced legislators to impose stricter regulations on room-sharing operators in several locations, including San Francisco, Vancouver, Amsterdam, and London.

Challenges that Airbnb faces

Despite Airbnb's phenomenal growth since its inception in August 2008, the company is facing more challenges lately.
On one hand, hotels are gaining more success in combating Airbnb. For example, New York City just passed a new regulation, charging steep fines to those Airbnb hosts who break local housing rules, resulting in fewer qualified listings in the market. Airbnb is also more willing to work with local governments to collect taxes on room-sharing rentals, now at the same rate as the one for hotels. On the other hand, Airbnb is facing allegations for the hosts' racial discrimination against renters.
The question is: Will those challenges slow down Airbnb's growth?

Airbnb's strategies for growth

Airbnb wants to become more than just a leading room-sharing platform in the market, as suggested in the following moves taken by Airbnb recently:
  • Airbnb acquired a couple of travel service companies, including Luxury Retreats and Tilt, as the company is getting ready to become a full-service travel company.
  • Airbnb wants business travelers, too. Not only has the company launched a website that tailors to business travelers, but they also work closely with the hosts to ensure the listings meet business travelers' needs. The most recent move Airbnb took was to introduce new booking tools that were specifically designed for business travelers.
  • Airbnb is working on a gadget that will provide travelers with reliable internet connections during their tripFor business travelers as well as those young leisure travelers, stable WiFi connections have become a must-have amenity for their stays.

Competition between Airbnb and hotels

It is unlikely that anyone can stop the growth of Airbnb. The competition between Airbnb and hotels is only going to get tougher.
Can you predict what the next moves for hotels or Airbnb might be? What suggestions would you make to hotels or Airbnb to win the battle?
* This discussion was first published at Multibriefs.com.

Comments

Popular posts from this blog

Social media engagement is immune to COVID-19 (by Steven Valenzuela)

In the unparalleled world of COVID-19, individuals are flooded with choices: whether it be what to eat or what church service to watch. While there are marketing strategies to get consumers to purchase products to immediately increase sales, it may be a more beneficial to engage with low spending consumers in the short term, so that businesses can keep them for the long term.   Social media game strong   During this time, it is crucial to keep social media posts constant and consistently more than ever before. A recent podcast by eMarketer reports that social media outlets such as Facebook have seen a significant rise in usage. The reality is that individuals have more time on their hands, which is why it is important for businesses to utilize their free time to create content for their social media channels. In a recent interview with the hospitality net, Leland Pillsbury stated  “Customers are going to come back...And if you allow your competitors to reengage with the guests before

The repositioning of Ten Ren’s Tea Time (by Eddie Long)

Ten Ren’s Tea was founded in 1953 and now operates one hundred retail stores globally, providing the finest teas to their loyal customers worldwide. Ten Ren’s combines modern technology and traditional methods when processing tea leaves to provide customers with the highest quality tea that aids in improving the quality of life and health for their customers. Ten Ren’s Tea Time, the restaurant, has a total of nine locations in the Southern California area. New Image: Ten Ren’s Tea Time recently changed its logo, as shown below. We can say that the marketing team wanted a change of the company’s logo to regain customer’s attention and regain their sales.  Just like they changed their logo, they also updated the website to fit the new theme. Their website appears more modernized than their previous design s, which can attract potential customers and returning customers. The company wanted to show its target market that they know what customers want and can accommodate any customer’s

Do you know where your prospects hang out during the #DeleteFacebook movement?

Facebook used to the cool place where everybody hangs out. Not long ago, Facebook was ranked the most visited website in the world , and the website where Americans spent the most time. Facebook page then became the most popular social media platform for business-to-consumer communications among various types of organizations. In recent years, however, Facebook faced several backlashes toward the platform’s data privacy practices and its CEO. Facebook is experiencing some challenges of maintaining its popularity among internet users, some of whom even call for a #DeleteFacebook movement . I myself, also notice a shift in my teenaged students’ interest in Facebook, even before the #DeleteFacebook backlash. So, if Facebook is no longer the cool place where everybody hangs out, which social media platforms can we use to communicate with our prospective consumers? The most popular social media platforms among U.S. teens According to a 2018 Pew Research Center report