Airbnb recently confirmed its latest round of funding — US$1.5 billion — and the alternative accommodation provider is now valued at more than US$25 billion. That’s US$15 billion more than the market caps of Wyndham and IHG, US$3 billion more than Hilton and just under the combined market caps of Marriott and Starwood.
Airbnb isn’t going anywhere and with more than two million listings in 190-plus countries and 34,000 cities, it’s hard to imagine that it isn’t competing for hotel consumers in many markets.
Yet I still hear industry leaders questioning whether Airbnb is friend or foe, if it is real competition or something that could be stopped. I understand and agree with the efforts to make sure the company plays by the same rules as hotels, but those issues will be resolved over time and Airbnb will still be standing. Consumers love what the peer-to-peer platform provides — a unique, personalized and truly authentic experience.
The industry can’t make the same mistakes it did with online travel agencies a decade ago. Rather than ignore disruption, hoteliers must embrace it and learn from it.
The company has built a community and communication between host and traveler starts long before the stay. Consumers have direct access to their hosts through the mediums we all use: social media, apps and even text messaging. The communication isn’t scripted — it’s genuine.
Hospitality can’t start when your guests reach the front door of your hotel. It must begin during the shopping and discovery phase and continue beyond check-out.
To read more Disruptors, check out the January/February issue of HOTELS.
Contributed by Patrick Bosworth, DUETTO, San Francisco