'Airbnb is forcing everyone to up their game': how hotels are changing tack | Business ... - 2 views
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Gibbons is far from the only millennial choosing to “Airbnb it” rather than splash out on a hotel. A report by Morgan Stanley [pdf] found that 42% of Airbnb users have replaced a traditional hotel stay with an Airbnb property. With travellers able to book anything from a penthouse in London to a picture-postcard cottage in the Cotswolds, how are small hotels responding
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ngerv001 on 07 Sep 19Since AirBnb has arrived to the scene many travelers have switched their preferences to staying at a home through the company rather using online reservation sites or directly at the property. Consumers feel they have more variety when deciding to stay at the AirBnb and, with the option of renting out an entire home for less of the cost of booking at hotel, that is hard to beat. Hotels most opportunistic route will be to partner with AirBnb's but more so for small boutique hotels. This will allow hotel properties and AirBnb to work hand in hand in getting a slice of the hospitality lodging profit. Since AirBnb has far less rules, regulations and charges than actual properties, hoteliers will have to find a middle ground with the company so they won't continue to lose travelers.
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This article talks about how Airbnb has become more appealing to travelers than hotels. Airbnb has become one of the largest hospitality networks offering cheaper stays and more authentic experiences than hotels. However, hotels are not liking this as people are more likely to turn to Airbnb's. There have been many regulations that hotels are forced to face while Airbnb's have close to no regulations, making it easier to earn an income without any specific regulations. Airbnb's have caused hotels to turn to different methods of gaining more customers while competing against such a strong competition.
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Its interesting that hotels and hotel chains have spent so much time effort and money on implementing standards and standardization over the past decade. AirBNB has limited standards other than the provision of accommodation. Standards were introduced as a tactical approach to consumer market by providing standardized and recognizable brand standards so that a traveler will know they staying in a Marriott for example. AirBNB success has turn that assumption on its head as travelers embrace differentiated product more related to finding a personalized choice that suits their personal tastes based on a more varied product offering. Hotel have been discussing personalization as a high level topic for many years now, more related to services and experience. Could it be that the success of AirBNB is actually an oversight of the hotel industry (perhaps explaining the significant increase in "Brands" by the largest hotel companies.) on the desire for travelers for personal spaces that are closer to the desires of the consumer.