Hotels vs. Airbnb: 4 ways Airbnb is disrupting the hotel industry

At only 9 years old, the San Francisco home-sharing platform is rapidly taking the lodging industry on a disruptive domino effect journey. Airbnb has inevitably come out revolutionary at a universal scale, as it not only switched the hospitality game but changed the ways we find places to stay at when traveling.
One of the most successful startups in Silicon Valley, Airbnb saw a gap in the hotel industry and offered travelers and local hosts a massive opportunity that hotels wouldn’t come close to offer. As Airbnb exploded, hotel demands decreased in favor of more affordable, personalized, and convenient home-sharing rental spaces. Unsurprisingly, Airbnb is now rivaling against the biggest hotel chains in the world in the most popular hot-spot destinations. Hotels are now not only competing against each other but Airbnb as well as it has taken the likes of the most tech-savvy generation by storm.
Unlike a hotel that takes you on an experience in its own way away from the city you are staying at, Airbnb catapults you in the heart of the city as you experience your new local home and connect with your host and surroundings. With Airbnb you get to live as a local at great locations for just the right price.


1. Embracing digital innovation and technology
Primarily tech-driven, Airbnb adopted the same methods used by hotels and adapted it to a home-sharing P2P network and later leveraged all this into a digitally based platform. By disrupting the traditional hotel industry, travelers now have a variety of creative rental stays that many hotels do not even possess. What’s more: Airbnb doesn’t own any of the listings on its site, hence making it a threat to hotels everywhere.

As it is in the heart of innovation, the platform focuses on both traveler and host experience during the entire journey. Since all actions, transactions, discussions, and reviews take place on the Airbnb platform, the home-sharing site uses this data to focus on the user and guest experience in order to build and grow their brand.

2. A tailored hosting experience
Unlike hotels, Airbnb hosts make you feel welcome before you arrive. This is all due to digital innovation where hosts and travelers can connect and become acquainted before they meet unlike a typical hotel experience. At the same time, these hosts are very beneficial to experienced and non-experienced travelers as they will recommend spots that you might not have otherwise heard of; think of it has having your own personal tour guide for free. This tailored hosting experience outperforms any hotel experience making Airbnb part of the large mainstream market. Furthermore, you’ll experience lodging like no other with the array of places to rent, such as treehouses, house boats, and creative trailers with spectacular views.

3. Customer Satisfaction at a whole new level
Although hotels heavily focus on customer care and satisfaction, they can’t beat Airbnb’s massive affordable accommodation that make guests feel right at home with the additional numerous benefits. Most houses and rooms are equipped with convenient amenities that include washing machines and kitchens, helping travelers save on pricey additional expenses that they would have to pay for if they had opted for a hotel. These additional amenities really make a difference to certain travelers depending on how long they decide to stay.
Another invaluable asset highly cherished by travelers is the flexibility that comes along renting a space. You are no longer confined to check in and check out at specific times as you would in hotels and be penalized to pay an extra cost for the room if you check in or check out late. Simultaneously, clients care about the cost they are paying as well as the additional benefits they receive. With Airbnb customer satisfaction sky rocketing (and not seemingly slowing down anytime soon), the more likely that hotels will have to find other means to innovate and attract clients.
The competition is strong and will most definitely not fade due to the favorable customized experiences.

Airbnb hotels

4. Millennial focused appeal
Not only is this the most travel centric generation, passionate with creativity, authenticity, and a love for adventure, but millennials also desire to make social connections, consistently stay connected to the outside world, and are fascinated to experience fun, cool, and new spaces.

Airbnb and hosts bring just that, and millennials are embracing it. With great affordability and comfort through innovation, the competition is stronger than ever before, and this is evident as numerous hotels scrabble to create design scenic accommodations that are very spacious, open, and affordable, fit for millennial social interaction.

As consumers take more advantage of the benefits that come along with Airbnb, hotels will have to step up their game. Where hotels cannot provide room availability in high-peak seasons and increase their rates tremendously, Airbnb hosts come in and drop their prices to satisfy their clients and challenge hotels. This price to value proposition will continue to drive Airbnb to new heights and hotels will shake up to follow on the lodging game.

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