Airbnb – The Invasion
13th November 2019
With Airbnb on the rise, homeowners who own various properties in tourist areas is becoming a popular option – which contracts space for an income.
The concept of Airbnb has risen over time and currently occupies in 191 countries and more than 81,000 cities worldwide.
As the tourism industry continues to grow, so does the demand for more affordable rentals, thus encourages the new trend of homeowners to sublet more free space.
Hotels rest uneasy with the growth of Airbnb as cheaper alternatives, more individual space and less booking hassle has caused major issues between the hotel industry and Airbnb.
Advantages
Wide selection
Airbnb provides a wide selection of places to choose from and also different property types. From single rooms, apartments and entire houses to yacht’s, house boats and even a castle.
Customisable searches
Property guests can search Airbnbs database not only by date and location but also by price, type of property, number of rooms and amenities.
Additional services
Airbnb has chosen to expand their offerings to potential guests and now include Airbnb Experiences. Guests can now plan their trip in more detail by searching for experiences on offer within the particular location they plan on staying at.
Protection
Airbnb protects their guests by holding the payment for the property 24 hours after checking in before releasing it to the host, which in turn protects the guests and hosts if any issues arise.
Disadvantages
You might not get what you expect
When booking accommodation through Airbnb you take the risk of not having the assurance that the property is as advertised, this is due to hosts creating their own listings.
Added fees
There are a number of additional fees that Airbnb impose on each booking, such as guest service fee of 0%- 20% on top of the reservation fee, this is to cover the customer support and other services. Guests could incur bank fees due to the currency difference.
Taxes
Guests from the European Union, Switzerland, and Norway may be subject to a value added tax (VAT).
The battle between Airbnb and Hotel chains
A campaign backed by the Hotel Association of New York City Inc. and the union that represents hotel workers launched an ad that linked Airbnb’s short term rentals to public security threats.
The ad sets the stage for fear-mongering and scare tactics to turns guests away from Airbnb listings, launching a campaign called “Who’s In Your Building?”.
However, Airbnb fought back with regarding the ad as an “outrageous scare tactic”. They launched a campaign called “Scare Tactics” fighting back. This example of ads are just a small battle in a much larger war between the companies.
Issues to be resolved
Airbnb endlessly argues the benefits it provides to cities and residents. This is because it offers financial benefits to homeowners and provides endless accommodation options for tourist’s.
Issues Airbnb have faced or are facing:
- Legal issues – Local housing laws and regulation
- Tax issues
- False advertisements and scams
- Tourism laws
- Discrimination against guests
Airbnb have responded to these issues through various strategies including a public relations (PR) campaign. This was because in 2017, Airbnb was accused of discriminating against guests to which Airbnb responded with an important video called “We Accept” which features those of different races and genders and introduced a non-discriminatory policy on their site (as seen below).
Summary
Overall, Airbnb has grown massively since it’s launch in 2008. Airbnb has brought to the table many advantages and disadvantages that have shaped its unique success. The reasons Airbnb are so successful is the price compared to hotel chains. However, this has caused some backlash with the hotel industry resulting in major competitive actions and compeiting in seeking alternative advantages such as incentives or changing their target audience. However, despite this, Airbnb somehow manage to face each issue with a campaign, slogan or competitive advantage encouraging more people to choose Airbnb which has resulted in Airbnb continuing their success and still on the rise against hotel chains.
The main question is, how far will hotels go to compete against Airbnb?
Will Airbnb continue to rise or are they just a passing phase?
What are YOUR thoughts or experiences of Airbnb vs Hotel chains?
Interesting read! I haven’t heard much about the conflicts between Airbnb and hotel chains, however Airbnb are becoming more successful and are expanding the areas that they are listing. Personally I don’t think they will over run hotels but who knows what the future holds.
Good Evening Lauren, thank you for taking the time to read the blog and leave a reply.
There has been a lot of light shed upon the issues surrounding Airbnb and hotel chain issues, such as those listed in the blog! Although some issues are likely to be kept away from public eye for personal reasons.
The future is definitely something we can not predict, yet Airbnb seem to continue to rise. They may not over run big hotel chains but they have already started to out sell smaller independent hotels and BnBs.. Watch this space!
Loved the video! It was very informative and the blog was an eye catching read.
Personally I find Airbnb a lot more comfortable than hotels as it has a more homely feel and most of them accept pets which is my main priority as I have a dog.
I like how some Airbnb hosts put little personal touches such as local brochures and gift baskets which I have not had in local hotels.
I think hotels will compete on price, but might slip on standards such as renovating, supplying the more modern traveller, so with that in mind, I think Airbnb will rise more than the hotel industry.
Good Evening Abby, thank you for taking the time to read the blog and leaving a reply.
The main idea of Airbnb is so everyone feels like they belong, including pets which is always a bonus when you own one.. two.. or more!
Hotels are upping their game to keep in competition with Airbnb so they are providing more options for people staying with them.
Overall we are glad you enjoyed reading our blog.
Whilst undoubtedly having more bedrooms in a micro market will have some impact I’m not convinced that many large operators currently see Airbnb as a direct and immediate threat, particularly those with a strong brand identity.
If you look at consumer brand awareness, there is more than sufficient information out there to suggest the major hotel brands carry much more weight and are much more recognised than Airbnb at this moment in time and argue for the notable future.
However, where consumers are prepared to research and source smaller providers, often at more competitive prices such as traditional B&Bs then they provide a much more direct threat and quite possibly we could see Airbnb change the face of that marketplace in much the same way Amazon has impacted the traditional high street. It enables the every day person to access a marketplace previously reserved for specialists.
Does this mean the ‘amateur’ hotelier replaces the long served B&B operator in order to make a quick buck at the expense of the ‘experts’ livelihood? Or do the B&B owners have a response of their own to this ‘invading’ and ever more powerful force…..
Nice blog! I haven’t really thought about the differences between hotels and Airbnb’s before. But come to think of it, I much prefer staying in Airbnb’s as it’s a lot more unique and most of the time, hosts create a homely atmosphere. The few I have been to, make sure there is everything you could possibly need, as well as little touches you wouldn’t necessarily find in a hotel. Airbnb’s are also very reasonable compared to hotels, which are usually more costly for something basic. I think Airbnb will continue to grow and hotels might struggle to compete in the future.
Good Evening Heidi! Thank you for taking the time to read the blog and sharing your thoughts about the blog!
Airbnb hosts do aim to please their guests, depending on where they are based might even offer some local incentives! which is always a nice touch.
Airbnb do pride themselves on being cheaper than hotels, which in turn has given them the upper hand and are already starting to outsell local hotels.
We appreciate your comments on whether you think Airbnb will continue to rise in the future, we certainly think so!
I found the article a very interesting read. I have never stayed at Airbnb although I have looked into various options on offer . Airbnb can probably only go as far as a house , flat , Apartment with maybe Breakfast or self catering . Personally the Hotels offer more in house Spas Gyms Pools ,some in acres for walks , they also do cottages for secluded stays so similar to Airbnb in a way , hotels are probably safer as they have security and car parking which for me is important , so for me Hotels will always be my first choice .
Good evening Joanna, Thank you for taking the time to comment and leave your thoughts!
As to what Airbnb offer, they do offer houses, flats, apartments which are mainly self-catered, however they do also offer yachts, boat houses, castles and many more unique places to stay! it’s just finding the right one for you.
Some Airbnb may offer bed and breakfast which is mainly dependent on the host. One issue with Airbnb has been the security checks, which in your case is a priority when looking for a place to stay. Airbnb have made changes to actually request security checks for both hosts and guests staying at a listing, but as far as security at the location, this can be a tricky one. Again, it will be depending on the host.
We appreciate your comments and your opinions on Airbnb’s and hotels! thank you.
An easy-to-read blog with great information! I hadn’t previously considered additional fees from AirBnB and was unaware of advertisement differences and between host listings and hotels. Although, hotels can also be disappointing and have misleading photos on their booking pages.
I enjoyed reading about the competition between hotels and AirBnB regarding scaremongering. I enjoy both AirBnB and hotels, but feel more secure in hotels due to the professionalism, routine inspections and procedures surrounding them. Also, the discovery of hidden cameras inside AirBnB apartments was a concern for privacy!
I have stopped in a few AirBnB previously and found them more personal and have an “up close” and homely feel. However, hotels are more generalised, professional and distant with their hospitality – which I prefer most of the time when on holiday.
Good Evening Sophie! Thank you for taking the time read our blog and leave a comment.
Yes, Airbnb hosts can request additional fees such as cleaning fees and guest service fees.
The competition between Airbnb and hotels is very interesting! we enjoyed researching around the different tactics both companies have used in order to gain competitive advantage.
Thank you for your comments surrounding your experiences with both Airbnb’s and hotels.
Love the video and the blog was interesting too! I love an Airbnb, you don’t need to worry about the noise like in a hotel. You can have your own space and do as you like. Hotels can be quite cramped in just one room whereas an Airbnb you have so much more comfort! And can be more cost effective sometimes especially in larger groups of people!
Good Evening Molly! Thank you for taking the time to read our blog and leave a comment!
We are glad you loved the video and found the blog interesting. Airbnb does have the option of renting the “entire house” which some travellers do prefer, sometimes we do love our own space!
One of the main aims for Airbnb is attracting groups of people which in turn saves YOU money.. being with friends and family and saving money.. what’s not to love?
Great article! Hotels can be really expensive, especially in the big cities around the world, but on Airbnb you can always find the perfect place to stay during your holiday! Airbnb are definitely becoming more successful by offering unusual places where you can stay such as campervan, treehouses and even caves. However, I think hotels will always be preferred for business trips.
Every time when I’ve used Airbnb for my travels, I’ve been happy with my choice and I’d definitely choose Airbnb in the future.
Good Morning Gabriela, Thank you for taking the time to read our article and comment your thoughts!
We agree with your comment on hotels being preferred for business trips, usually because hotels have business accounts which offer discounts and conference rooms, but who knows what the future holds.. maybe some day Airbnb will rise to that challenge.
Abnb’s have gotten big in Jamaica over the years of exposure to the island.
It has help alot of locals here with independence of being self sufficient in a society of low income earner’s and with the all imclusive large hotels taken away from the earnings of average people…
This system has given visitors to the island the option of actually indulging in local activities and supporting the local economy without a doubt…
Being a local tour operator myself working with and for a company called @knowjamaicatours http://www.knowjamaica.com , i have seen where this system has helped our company quite immensely and i would invite visitors to research find the right people and places to com ere and enjoy Jamaica…
Good Afternoon Javia, Thank you for taking the time to read the blog and comment your thoughts all the way from Jamaica!
We are glad to hear that Airbnb are able to help low income earners and improve the economy. We definitely agree that Airbnb options are able to give the tourists the opportunity in indulging in local activities. We hope that Airbnb carries on to help your company.
What a interesting read I never considered the war between hotels and air B and B personally I’d always choose air B and B more space ie I rent a whole apartment for cheaper then a hotel room! And their amazing abroad and much more personal and all for a cheaper rate if you can do this from your own home and make some extra money why not!!
Good Evening Louise, Thank you for reading our blog and taking the time to comment.
Airbnb do provide some extraordinary homes listed on their site all around the world! which in turn can be a lot cheaper than a hotel, a lot more space and excellent value for money. Many hosts do think alike, why not make some extra money by listing your home? it really is becoming a growing trend.
Thank you for leaving your comments, we really do appreciate it.
Personally as someone who loves to travel and to learn about the different cultures, I feel you experience a more personal experience while using an air bnb. This article is extremely informative with the battles between hotels and air bnbs. I think the both have their pros and cons. I stayed in an Air BnB once in Paris, the location was perfect and it was cheaper than a hotel, however the condition of the property was not properly advertised and it was a very old and worn down property.
The video in this article is easy to understand and very informative!!
Good Evening Jo! Thank you for taking the time to read the blog and leave your comments.
One of Airbnb’s aims is for the traveller to get a more local feel when visiting a destination! this is why some listings can be in the heart of the city. We understand that sometimes the property is not as it has been advertised, this has been a problem that Airbnb have had in the past, however stated on their website is “Contact your host, contact us – Guest Refund Policy” this means that if the host is not able to respond to the issues, Airbnb Service desk can help and also refund your money! hopefully this is something they can improve on in the future if they are to continue growing to avoid such issues. We are glad you found the video easy to understand and informative!
Thank you for leaving your comments!
Interesting topic and decent read. I love air b&b; better value for money, more personal, pets allowed, more space the lot. I think when you can dedicate your money and time to one space it will always be better quality than when money has to be spread over multiple spaces/rooms, as that quality drops and corners are cut. I don’t trust hotels, it’s all numbers and cost cutting to make the biggest profit.
Great read. I was not aware of the competition between Airbnb and hotels.
As I have a family of four, I personally find Airbnb suit our needs better than a hotel will and is better value for money. Most hotels will include breakfast or dinner, with Airbnb, you have your own space to refrigerate and cook food whereas with a hotel, we would have to spend extra money on dining out.
I would usually stay in a hotel if just my partner and I were staying away, but as a family we would always use Airbnb.