Airbnb has opened up its platform to boutique hotels, which is an opportunity for some to reach a new segment of traveler. But the experience of one property that lists on the platform indicates that hoteliers should prepare for a different kind of booking experience with Airbnb.
Long viewed as an adversary of the hotel industry, Airbnb is now offering a spot on its platform for boutique hotels. Offered at a relatively low cost compared to other channels – like online travel agencies – sources said there are clear reasons why working with them is advantageous, but there are challenges as well.
Daniel Cauley, revenue manager at The Guesthouse Hotel in Chicago, said the property has been listed on Airbnb for years. That is in large part because the property has transformed considerably over the years, transitioning from vacation rental properties with a small hotel attached to entirely a hotel. He said the property started on more traditional vacation rental platforms before moving on to Airbnb.
Listing on the alternative-accommodations site has “been pretty successful,” he said, but that revenue “is more of a supplement than a driving factor.”
“It’s an inexpensive way to get bookings versus Booking.com or Expedia or other players,” he said. “And it has a pretty strong following among the people who use Airbnb, but I still view it as a niche market. A lot of people are just not going to book (a hotel) on Airbnb.”
He said about 5% to 7% of the Guesthouse Hotel’s business comes through Airbnb.
A growing platform
Airbnb officials announced in February plans to open up the platform to different offerings, including boutique hotels, along with the addition of a new high-end tier with more hotel-like amenities. The changes were made in part to offer travelers more options, but were also a recognition of the fact the Airbnb marketplace was already diverse and perhaps not well organized.
“Over the years, the types of properties on the platform have become increasingly diverse, from treehouses to boutique hotels, but it’s still only possible to navigate by three property types—shared space, private room and entire homes,” reads the news release announcing the change. “This makes it hard for hosts to stand out, and guests can’t always find what they’re looking for.”
Four new property types offered on the site now include “vacation home, unique space, B&B and boutique,” the last of which is where hotels would likely fall.
