Southeast International Analysis: What Does AirBnb Mean for Hotels?

As technology progresses, so does business. Innovators and entrepreneurs are always thinking of new ways to do business. With this progression arose the shared economy. Even if you’re not familiar with the phrase “shared economy,” you’re probably familiar with some primary facets of it. Services such as Uber, Lyft, and, most relevant to hotel owners, AirBnb are all companies that have arisen from the shared economy. These peer-to-peer systems promise unique experiences compared to the usual services. But how much of a threat is a company like AirBnb to hotel owners? Today, Southeast International Hotel Brokers delves into the facts to give you a clear picture of what AirBnb means for current and future hotel entrepreneurs. Don’t forget to contact Southeast International for any of your hotel brokerage needs.

Is AirBnb Really Cutting into Hotel Profits?

The most common question, and understandably so, that hotel owners have about AirBnb is its competitive standing. Will this be cutting into my bottom line? Do I really have to worry about losing a mass amount of customers to this company? The short answer to these questions seems to be no. Hotel profits have been on the incline in recent years and that trend doesn’t appear to be slowing down. Although AirBnb is an alternative to a hotel, it’s still a very different experience. Unlike Uber and Lyft, AirBnb doesn’t offer the exact same service as its traditional competitors. Taxi companies have battled Uber and Lyft due to the latter services’ reliability, personal touch, and sometimes cost difference. AirBnb, meanwhile, offers a similar service to hotels, with some distinct differences.

What Can I Do to Combat AirBnb as a Hotel Owner?

So what are the main differences between hotels and AirBnb? Here at Southeast International Hotel Brokers, we’ve observed two major differences that prevent AirBnb from posing a significant problem to the hotel industry. The first difference is rewards programs. Due to AirBnb being a peer-to-peer system, individuals simply can’t set up reward programs for their rentals. Rewards programs are a strong incentive for people to keep coming to a hotel over and over, and this won’t change anytime soon.

The second major difference is consistent quality. With most hotels, you can almost guarantee that you’ll have room cleaning service, front-desk service, good location, and overall dedication to customer satisfaction. This isn’t necessarily the case with AirBnb, as it’s entirely up to the individual who runs the rental. AirBnb doesn’t really have any way to regulate this other than a rating system. So there isn’t really a need to combat AirBnb as of now, other than to continue offering your guests the same great service and satisfaction they’ve come to expect.

Buy a Hotel with Southeast International Hotel Brokers

When we take all of this into consideration, it seems that AirBnb isn’t any more of a threat to your hotel than other competitors. In fact, AirBnb seems to appeal to a different demographic entirely. It certainly won’t be taking customers who are staying for business purposes anytime soon. It mainly appeals to customers who may not have stayed in the city if they couldn’t find an amazing deal, so you can’t lose customers you wouldn’t have had anyway. If you’re asking the expert opinion of Southeast International, we’ve concluded that hotel owners can rest easy. The hotel industry is as strong as ever. If you’re in the market to buy a hotel or motel through Southeast International Hotel Brokers, contact us today, or view our website for more information.