AirBnB to launch new brand to compete with boutique hotels

by | Aug 16, 2017 | Boutique Hotel, General News

AirBnB will be encouraging managers of their “Select”, or premium, properties to operate a service more akin to that of a hotel

The hotel industry’s arch-nemesis AirBnB is gearing up with a new initiative that will see the home sharing website provide upscale accommodation

The hotel industry’s arch-nemesis AirBnB is gearing up to take on another slice of the hospitality sector’s pie with a new initiative that will see the home sharing website provide upscale accommodation that is designed to target wealthier travelers, Bloomberg recently reported. AirBnB’s reported new brand will match discerning clients, who have previously not used the online service because of an attachment to a quality standard and hotel amenities that are not guaranteed by the home sharing site, with quality tested accommodation.

The site, which is expected to be launched in pilot form shortly, will offer a select range of apartments and homes that have been inspected by AirBnB staff and will have to follow certain guidelines and meet a checklist of certain standards set by the temporary accommodation giant. If they do not meet the requirements, they will not be listed on the website’s premium section or on the AirBnB premium app.

The new scheme is part of an effort by AirBnB to corner another part of the hotel market. Initially, AirBnB was popular with budget travelers who wanted a local, no frills experience, but as the business model has grown, higher quality apartments that offer the same local experience are being sought after by more discerning travelers.

However, there is still a fair share of business and leisure travelers who would choose a hotel over AirBnB, and would probably not even consider the latter option.

This is the demographic which AirBnB is aiming to reel in with the premium proposal: older, wealthier travelers who have previously not bothered using the site. It would provide a whole new source of income for the hospitality start up, and undoubtedly put a dent in the pool of guests that established hotel chains rely on, those who have continued to stay in hotels despite the rise of short term accommodation and home sharing.

AirBnB will be encouraging managers of their “Select”, or premium, properties to operate a service more akin to that of a hotel, and initially will be aiming to align this standard of service with that of boutique hotels.

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