Short-term home rental service Airbnb is innovating in the luxury travel space and responding to consumer demand with its soon-to-be-finalized purchase of Luxury Retreats, a similar service working with only upscale properties.
The online marketplace will likely be focusing on bringing more luxury services to its users after the takeover is complete. The move is likely due to demand from users, who are interested in an easy experience in renting luxury homes for vacation or business stays.
“Vacation rentals are no stranger to the luxury travel industry,” said Taylor Rains, “What Airbnb has done, though, is make that travel option far more accessible than it ever has been.
“By acquiring Luxury Retreats, Airbnb is essentially creating a major hospitality brand spanning a variety of segments, including luxury,” he said. “A move like that, though, doesn’t come out of the blue, Airbnb clearly acquired Luxury Retreats based on demand, which is something the luxury travel industry must recognize and adapt to.
“Travelers, even those in the luxury market, are looking for more freedom from their stay than ever before. In order to compete, traditional hospitality companies will be forced to adapt their offerings to maintain appeal among their base.”
New way of travel
While the deal has not been officially announced, the board of directors for Airbnb is set to vote on the deal soon. Seeking Alpha reports that the acquisition is priced somewhere between $200 million to $300 million.
