The world is booming with hotels, and I admit that I have stayed in the best and the worst of them. Let’s rewind back to 2008 when Airbnb (formerly Air Bed & Breakfast) first arrived on the scene. Brian Chesky and Joe Gebbia, bought three inflatable mattresses and let them out to the public. Eight years later in 2016 and newly named ‘Airbnb’ has become a global hit, with people opening up their homes and marketing their spare rooms out to holiday makers, business travellers and anyone in-between who needs a place to stay and is reluctant to stay in a hotel. It is clear to see that Airbnb is the new accommodation competitor on the market, sending shivers down hotel owners spines. Need somewhere to stay? Big or small, extravagant or budget, Airbnb appears to cater for all types.
Airbnb now host over 60 million guests across 34 thousand cities, in over 191 countries. With almost every corner of the planet covered by the phenomenon which is Airbnb, it is not surprising that this has attracted the attention of hotel chains all over, and has caused them to become wary and conscious of their ever-growing competitors. It has been estimated that hotels lose approximately 45 million US dollars per year to Airbnb resulting in it becoming the hotel industries most threatening competitor. Although these figures are proving to be a great success for the consistency and growth of Airbnb, we are seeing a decline in hotel reservations in comparison to Airbnb, whilst they also save up to 200 million US dollars worth of income of which hoteliers pay their employees, an expense which Airbnb do not need to worry about. Instead hosts who want to list their rooms, apartments or houses pay a service fee per every reservation fulfilled and in conjunction with that fee, another fee is charged, where the proceedings go straight to Airbnb in order to keep the organisation up and running. This once again puts Airbnb at a direct advantage in comparison to hotels.
It is clear to see that Airbnb has also adopted well to the evolution of modern digital technologies. Airbnb can be accessed through its one app platform and is available on Apple and Android devises and anything in between. With all your possible accommodation choices in one place, it is easier than switching between hotel price comparison websites and through many different hotel websites as Airbnb holds no competition between the price of it’s accommodation therefore guaranteeing that the price cannot be beaten.
Whether you are a fan of the luxurious feel of staying in a hotel or dare to be adventurous and book a night away in a tree house, castle or the multitude of places Airbnb offer, is is clear to see that this newer form of booking for a place to stay has modernised with the times. Many still stick to what they know and feel safer when booking into a hotel, despite the reasonable and (more than often) cheaper priced accommodation that Airbnb has to offer. Does the hotel industry need to be weary and devise a backup plan for the coming years? I think so.
http://www.hospitalitynet.org/news/4074708.html
https://www.airbnb.co.uk/help/article/63/what-are-host-service-fees
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