Skip to main content

What to expect in 2018 from the battle between hotels and Airbnb


-->
Entering 2018, Airbnb will soon celebrate the company's 10th anniversary. The company has now turned into one giant service provider in the lodging industry.
Today, Airbnb has already served more than 200 million travelers in more than 65,000 cities around the world. With a supply of more than 3 million listings, Airbnb has more available "rooms" than any hotel chain in the world. It was inevitable that Airbnb would make significant negative impact on hotels due to its increasing supply and the low entry costs for Airbnb operators.
But hotels are fighting back. They are trying every possible way to stop the growth of Airbnb.

Hotels' strategies

Airbnb's strategies

  • Airbnb is ready to enter the real estate market, contrary to the "asset-light" strategyadopted by hotels. A few weeks ago, Airbnb just made an announcement that the company was going to invest $200 million in the company's branded apartment project in cities across the U.S. Tenants in these apartments will have the permission to rent their place on Airbnb for up to 180 days a year; they would then share a portion of the revenue they make with the landlord. The apartment complexes will also be built with "Airbnb-friendly" designs, such as keyless entry and shared common areas.
  • Airbnb wants to become a full-service travel company after acquiring several other travel service companies.
  • Airbnb is actively improving its products for business travelers. Airbnb not only launched a website that tailors to business travelers but also provides clear guidelines to hosts, helping them make their listings "business-traveler-ready."
  • Other services that Airbnb is working on include: development of a gadget that will provide reliable internet connections to travelers, as well as fighting back against the lodging industry and the lawsuits against the company.

What can we expect in 2018?

I wish I had a crystal ball in my hands, but I believe it would be frightening for hoteliers when Airbnb begins putting listings into categories based on the service and amenities provided.
Imagine what would happen when Airbnb's 3 million listings are being labeled with distinguishable "brands" in their own categories, as what clear branding would do to hotels. What about when Airbnb hosts are trained as professional operators who can manage their listings as effectively and efficiently as hotels?
Yet what concerns me the most is the attitudes held by some hotel leaders who, for whatever reason, have never stayed in an Airbnb before. As an old Chinese proverb says, "Know your enemy and yourself, win every battle."
I am urging every hotelier to add one more item to the list of their New Year's resolutions: Give Airbnb a trial if you have not done so yet.
What are your predictions in 2018 regarding the battle between hotels and Airbnb? Please share your thoughts with us.
Note: This post is also available on Multibriefs.com; The picture was downloaded from HotelManagement.net.

--> --> -->

Comments

Popular posts from this blog

Yammer: A Social Networking Site Exclusively for the Workplace

Effective internal communications among employees are related to some desirable organizational outcomes, such as robust morale, a clear vision, low turnover, and high employee engagement. The question is what platform can serve the purpose. This ABC News video introduces “ Yammer ,” an exclusive internal communication tool for companies. A user must use a valid company e-mail address to sign up for an account. Once an account is validated, the user will be led to the company page that is pretty much like a Facebook page. The difference is that only the users whose e-mail addresses share the same domain can see the wall and communicate with each other. I have no question about whether Yammer could be a useful internal communication tool for companies, but I just wonder: how many social networking sites do people need for communication? Why people have to “create” so many platforms or channels for “effective communications”? To many people, Facebook is only for “friends,” whe

Luxury vs. Millennials and Their Technology: The Ritz-Carlton (By Julia Shorr)

Embodying the finest luxury experience, The Ritz-Carlton Hotel Company, LLC has been established since 1983. In 1998, Marriott International purchased the brand offering it more opportunity for growth while being independently owned and operated. They are known for their enhanced service level as the motto states, “Ladies and Gentlemen serving Ladies and Gentlemen”. The luxury brand now carries 97 hotels and resorts internationally and is attempting to keep the aspects of luxury while keeping up with the trends of the technologically improving generations. The Varying Demographics of the Target Market The Ritz-Carlton’s typical target market includes: business executives, corporate, leisure travelers, typically middle-aged persons and elders, and families from the upper and upper-middle class section of society .   This infers a large range of types of travelers in which all are similar in that they are not opposed to spending extra for the luxurious ambiance. However, with

How to choose the best credit cards for travel (By David Mai)

  Traveling in a Post-Pandemic World If there was one thing the pandemic taught us, it was that everybody became hesitant and unwilling to travel. Shaver (2020) of The Washington Post shared an interesting tidbit in which Americans were actually staying home less during the pandemic, according to research that tracks users' smartphone data.  The quarantine fatigue affected nearly everyone who lived an active lifestyle or loved to be out and about in the world. It was simply not a safe time, and too many regulations were in place that deterred consumers from traveling for leisure. Consequently, the COVID-19 pandemic significantly impacted the travel and hospitality industry. Yet, there is no doubt that people will yearn to travel again when the pandemic is fully lifted. Around this same time, credit card companies have developed unique ways to retain business with consumers who look to maximize rewards and benefits for their journey. A Little Preparation Goes a Long Way