Airbnb’s strategy is pivoting towards incorporating hotels, an area CEO Brian Chesky aims to grow into a “multi-billion-dollar business.” This shift marks a departure from the company’s original stance as its initial motto was “Forget hotels.” Chesky’s change in perspective came as a response to customer demand for hotel listings, which he highlighted at a Goldman Sachs conference, stating that practicality overtook ideology.
Expanding Horizons
Airbnb’s approach to the hotel market differs from competitors like Booking.com and Expedia in that it is carefully selecting its supply, offering attractive terms such as lower fees. This strategy is buoyed by its massive reach, with more than 1.6 billion devices accessing its platform annually. The company is confident this will provide participating hotels with unparalleled demand.
As of 4 September, AirDNA data revealed that Airbnb had 3,939 hotels listed using a new format across several hundred markets. Despite hotels currently making up only a small portion of booked nights in the second quarter, Airbnb’s overall business is nearing a significant milestone, with gross booking values approaching $100 billion.
Reporting based on coverage first published by skift.com.