Hotels, B&Bs and Hostels are welcome on Airbnb!
Airbnb’s changed from its early days so we think it’s worth reflecting on how these changes could attract new customers for you.
Hotels, Guest Houses, Hostels and Glampsites are now joining the Airbnb platform along with Cottages and other self catering accommodations. Its a safe bet to say that Airbnb’s change is all about opening up their listings to provide more choice for their customers.
Getting more bookings often means attracting new and different types of guests and on Airbnb these guests will typically be younger and booking closer to arrival;
- About 40% of guests that book on Airbnb are aged between 25-34 years, this is quite a bit younger than typical bookers from other sources.
- Last minute bookings are a big thing on Airbnb with about 40% of bookings being made fewer than 15 days before arrival. A great way to fill some gaps, especially in the quieter seasons.
Many people don’t realise that business people also form a significant part of Airbnb’s customer base. Airbnb is quite an attractive site for a number of business travellers that are looking for the sort of experience only independently run businesses just like yours can provide. These are more likely to be new customers that might not find you if it wasn’t for Airbnb.
Many of Airbnb’s customers are very loyal and will only use their platform to book their stay so being on Airbnb means you’re immediately exposed to them. They’re also looking for exactly what you offer (professionally run independent accommodation) so it’s worth getting in “front of them”.
Many of you are already aware that freetobook and Airbnb are now fully connected for updating rates, bookings and availability so you don’t need to worry about double bookings or double entry. You’ll also get the support and advice that comes with our Channel Manager connections team.
Like all of the services we offer, the Airbnb connection is optional. To get connected and find out more just visit the Tab “Plus” and select the “Airbnb” section.
In an 
Hotel Bonanza is a new Online Travel Agent (OTA) with a strategy of offering a lower commission for accommodation owners and a discount to guests. They have set their commission at 8% so you will find them considerably cheaper than the current dominant OTAs.
High levels of cancellation, high commissions from Online Travel Agencies (OTAs) and competition from Airbnb are big issues that a giant chain like Hilton have in common with independent owners.
Nassetta, from Hilton, says “customers…have been trained to do multiple bookings and do things that have created a scene where cancellations…have skyrocketed.” He is talking about certain OTAs encouraging customers to book and cancel. OTAs don’t really care about high cancellation rates if the customer books again through them it doesn’t matter to their profitability, they still get the booking; it’s the cancelled property who loses out.
Many of our customers tell us about the rising commission bills which seem to get larger every year as OTA bookings keep rising. Hilton mentions a lack of competition “More competition would have the effect of driving down distribution [commission] costs.” We have seen less competition as the OTAs take over rivals leaving only two major OTAs (Bookingcom and Expedia, who own most of the others). Nassetta, of Hilton, thinks that Airbnb could change to become a competitor for the OTAs and help drive down commissions.
Why should I book directly ? Answer this question in your customer’s mind and you will increase your direct bookings. Use some subtle “book direct” images and text to show that booking directly on your website is the best thing that guests can do.
A good healthy business mix includes plenty of direct bookings alongside a diversified strategy with Bookingcom and Expedia, but make sure you have a plan to increase direct bookings.
