Airbnb’s push into hotels

Airbnb’s move to “aggressively” expand into the hotel sector demonstrates continued convergence of the asset classes. Likely in response to regulatory crackdowns on short term rentals in many urban markets, hotels – especially in Europe, where CEO Brian Chesky notes a “high per cent are independent” – represent a relatively untapped supply channel for Airbnb.

Over the years, the company has grown its hotel listings with Chesky tweeting in 2017 that 15,000 boutique hotels were on the platform. The acquisition of HotelTonight in 2019, which had more than 25,000 hotels in 1,700 cities worldwide at the time, served as an early foundation for Airbnb to actively increase its footprint in the sector.

Following conversations with hotels “around the world”, Chesky described the sector as “compelling”, stating that hoteliers are looking for “incremental travellers”. “What we’re trying to do is build a platform – a platform that has homes, services, experiences, hotels, and much more,” he added.

Independent hotels lack the firepower of bigger chains, whereby Airbnb’s reputation, scale, and marketing muscle offers an attractive source for bookings. If mismanaged however, it may erode the direct relationship with guests that independents have worked so hard to build. Balancing the benefits of expanded reach with guest loyalty will remain an ongoing challenge for hoteliers in the broader OTA landscape.

Editorial commentary first published on Boutique Hotel News.