Airbnb continued to take aim at the hotel industry and battle growing competition in the shared economy space this week by announcing at its Airbnb Open conference a variable pricing model, as well as a program that gives hosts badges certifying them as “business travel ready” to better target business travelers.
The Financial Times reported Friday that the variable pricing model will help recruit more hosts around the world as its demand outstrips supply.
Airbnb expects its new pricing system to boost revenues both for hosts and the company, stating there has been a 13% increase in revenues among hosts who used variable pricing during a trial period.
The new pricing system will adjust room prices based on changes in demand in real time. Hosts who elect to use the service will be able to set maximum and minimum prices, and state how frequently they would like guests.
At the same time, Tech Crunch reported on Friday that the “Business Travel Ready” badge will require hosts to have Wi-Fi, a designated workspace, an iron and hair dryer, and that hosts can’t cancel less than seven days before a booked stay.