Skip to main content

Marriott too is getting into the room-sharing business

Image
By


If you cannot beat them, join them.

Hotels have been trying very hard to stop the growth of Airbnb, but until today, Airbnb remains to be the supersize rival of hotels. Despite the fact that more destinations are now tightening up the regulations for short-term residential rentals, Airbnb turns out to be an even stronger competitor in the market. Airbnb is ready to fight against hotels by debuting the new brands of Airbnb Plus and Beyond by Airbnb and against the OTAs (online travel agents) as the company is set to become a full-service travel enterprise.

Guess what? When it is impossible to get rid of Airbnb, hotels are now entering the room-sharing business. Following the footprint of Wyndham, which recently purchased Love Home Swap, as well as Hyatt, which just added “handpicked” homes that meet Hyatt’s standard into the hotel’s “Unbound Collection,” Marriott - the world's largest hotel chain is also taking on Airbnb as it gets into the market for short-term residential rentals. 

According to The Independent, a British online newspaper, Marriott is launching Tributeportfoliohomes.com. Now, the website lists over 200 homes in London, with the following highlights:

  • This is a six-month pilot program in a partnership with Hostmaker that provides home rental management service in London as well as other top tourist destinations, including Paris, Bangkok, and Rome, to name a few examples. 
  • Such services as in-person check-in and 24/7 customer supports over the telephone are guaranteed. 
  • Travelers can earn Marriott Rewards for their stays, which will be soon combined with the Ritz Carlton Rewards and Starwood Preferred Guest Program.  
  • Similar to Hyatt Hotels that include individual home listings into its existing boutique hotel brand – “The Unbound Collection,” the home listings under the Marriott umbrella will be listed in its “Tribute Portfolio,” a former Starwood brand for independent hotels before the Marriott-and-Starwood merger.
  • While the home listings under the Tribute Portfolio provide travelers a unique experience of a residential home, Marriott adds additional criteria to ensure the listings meet the standards set by the hotel chain.
  • The average daily rate in this pilot program ranges between £200 and £250, higher than a budget hotel.
Meanwhile, Airbnb's new product --- Airbnb Plus also added additional checkpoints to its listings, with higher standards than the ones set for the regular listings. Moreover, Airbnb is planning to launch a loyalty program later this year. While the details of Airbnb’s loyalty program is yet to be announced, it is expected that frequent travelers who use Airbnb can enjoy similar perks of what other hotel loyalty programs would offer.

So, what really sets the home listings managed by Marriott or Hyatt apart from the ones on Airbnb?

Honestly, if Airbnb does it “right” in its two new brands and its yet-to-be-announced loyalty program, I am not sure if there is really a big difference between an Airbnb Plus listing and the ones listed under The Tribute Portfolio by Marriott or The Unbound Collection by Hyatt. Nevertheless, hotels indeed have a few more advantages than Airbnb or OTAs at this point as far as managing the home-sharing business is concerned. For example,

  • The big hotel chains have the brand recognition for their trusted service standards, an asset that many individual Airbnb hosts or Airbnb does not have. In addition, home listings by Marriott must go through quality checks periodically according to the Marriott standards, but Airbnb Plus or Beyond by Airbnb would qualify a listing based on the initial check.
  • Many hotel brands have already had a large group of loyal customers, but it will take a while before Airbnb figures out a new loyalty program that works.
  • Hotels have the expertise of running a successful lodging business (e.g., using an effective pricing strategy in revenue management) whereas Airbnb is still a newcomer in the market.
  • Certain services offered in a hotel cannot be easily replaced by a majority of the home listings on Airbnb, such as the convention or meeting space, resort amenities, and elaborated room-services (usually in upper-upscale and luxury properties only). As a result, it is unlikely Airbnb will compete with hotels in the group or convention business.

Now that Hyatt, Wyndham, and Marriott have entered the home-sharing business, which hotel chain will be the next? What advantages and disadvantages do the home listings managed by Marriott or Hyatt have as compared to the ones that are available on Airbnb?

Notes: This post is also available on MultiBriefs.com. The picture was downloaded from https://hackernoon.com/cryptocurrency-platforms-the-key-to-disruptive-innovation-ddb5bcf8c5c7.  
Labels:

Comments

Post a Comment

Popular posts from this blog

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

By
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
4 comments
Read more

Is It OK for Hotel Staff to Wear Piercings and Tattoos?

By
Time has changed. I see more and more college students wearing piercings and tattoos nowadays, but is it OK for hotel staff to wear piercings and tattoos? The answer is “no, no, no.” According a report at USAToday.com, customers across the board do not want to see any hotel workers with pierced eyebrow, pierced tongue, tattooed arm, or nose ring. Some may argue that tattooed and pierced workers may seem more acceptable in edgy boutique hotels as compared to the big franchised hotels, but the survey results did not find any differences among a variety of lodging products. Many respondents believe people who wear visible tattoos and piercings are taking a high risk of their professional lives. If you stay in a hotel, do you mind being served by tattooed and/or pierced staff? What if you are the one who makes the hiring decision? References: USAToday.com: http://tinyurl.com/linchikwok08042010 Picture was downloaded from http://tinyurl.com/linchikwok08042010P
13 comments
Read more

How Covid-19 will change the HR department? (by Vivian Tan)

By
With the current pandemic happening, many businesses are having a hard time. It is hard for them to maintain to pay all their employees, and many things have changed on how companies are running during Covid-19. Because of this virus, employees work from home and might lack the motivation to finish their tasks. Many businesses shut their doors infinitely and file for bankruptcy because it is hard to pay their employees, and there are not many businesses coming in. In the hospitality industry, the HR department must create policies and answer questions from the outbreak. It is also essential that they communicate with workers for any updates and make sure that it does not affect their daily operations.     When it comes to covid-19 concerns, the HR department should communicate with the employees for any updates on the virus, such as informing employees about policies, personal hygiene, posting signs around the workplace about symptoms of the virus, and wear masks. Also, asking employee
6 comments
Read more