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ANALYSIS

Why hotels should embrace Airbnb (and other peer-to-peer rentals) and start earning money from them

airbnb

Hotel owners should stop running scared (or trying to muscle out) peer-to-peer rentals and start striking up relationships with owners of popular flats.  Why?  Clearly, it’s filling a need in the marketplace, it’s growing like crazy and it’s here to stay.

Peer-to-peer rentals may have filled a void, but they’ve also created one that hotels can fill.

Imagine you’ve got an amazing four-bedroom flat in say, Amsterdam. You’re traveling to the US for a few weeks and would like to earn $250 a night while you’re away. Chances are most would-be renters only want to stay for 2-5 days.  It’s easy to manage several bookings before departure or even while you’re away, but who’s going to professionally clean your place in-between guests?  And if you’re planning to leave a spare key with your neighbor, it puts a lot of pressure on them to be home when your new guests arrive, which might be very early or late at night.

Plus, the guests may like the appeal of staying in a private flat, but may not want to do much cooking while on holiday. And they may like access to a health club.  Who has professional housekeeping, breakfast buffets, a health club and a front desk that’s open 24-7 and can be trusted to hand out a key?  Beginning to see the logic?

If the nearby hotel reaches out and makes a deal with the luxury flat owner, it allows the flat owner can rent out their place more than once while away, offer hotel amenities and even raise their price.  The hotel gets a cut (enough to pay for the housekeeping services, breakfast, plus a little profit) and gets some additional branding and exposure — a chance to impress potential guests with a breakfast, health club and good housekeeping.

Perhaps most important: hotels get a new revenue stream with very little overhead and, who knows…  that may even prove more lucrative than running the hotel.

Sound far-fetched? Here’s an example of what such amenities would look like: https://www.airbnb.com/rooms/24215

Hotels: Don’t forget to keep your friends close and your enemies closer.

 

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