3 Reasons Why Airbnb Will Disrupt The Hotel Industry

3 Reasons Why Airbnb Will Disrupt The Hotel Industry

Airbnb is an online service that connects travelers to unique spaces to stay in when traveling. Anyone can become a travel accommodation provider by renting out a room, an apartment, or a home (called “hosting”). During the beginning stages of the pandemic, Airbnb was increasing customer numbers and revenues. The inherent advantages built into its business model were fueling revenue growth—especially in servicing customers who would have used hotels if not for their widespread COVID-19 vaccinations.


Following are the main Competitive Advantages Airbnb Holds Over Hotels.


Read on to learn:


  • Group Travel
  • Out-of-the-Way Locations
  • Long-Term Stays


Group Travel


We’re all about bringing people together, and we’ve noticed that many of you have been traveling in groups lately. Maybe it’s a crew of your closest friends or you and your whole family. Either way… we too! 


Airbnb has always been about connecting people to the places they want to stay when traveling. It’s why we built the platform for people to host travelers in their own homes, which can be especially great for group travel. Unlike hotels, where you might end up paying for multiple rooms in a house or apartment that only sleeps six, on Airbnb, you can book one space that can safely fit all eight of you if you choose to do so!


And not just any space—we’ve got some pretty spectacular options available on Airbnb. Imagine escaping the city and staying in a cozy mountain cabin with a hot tub overlooking the ocean or booking a villa by the beach that comes fully stocked with all the beach toys you could ever imagine wanting.


Out-of-the-Way Locations


Most people think of the word “hotel” and imagine big cities. That’s because hotels are typically built in places where there are a lot of people. Think Los Angeles, Paris, London, and Miami. These are cities hundreds of thousands of people want to visit every year. Hotels need large markets to justify the costs of building expensive buildings. They typically shy away from rural locations that don’t attract large swarms of visitors.


This is another area where Airbnb wins. With far fewer hotels in non-urban locations, Airbnb offers listings of rooms, and even entire homes, in non-urban areas. Indeed, from the first quarter of 2019 to Q1 2021, active listing in non-urban areas has grown by 30% on Airbnb.


Long-Term Stays


Hotels are great for business trips and vacations, but you might have some trouble if you’re planning to stay for an extended period of time. That’s because hotels usually don’t offer the kind of accommodations that make staying long-term comfortable: kitchens, laundry rooms, and other facilities.


Budget-friendly home-sharing sites like Airbnb are designed to be more suitable for long-term stays. Hosts will often make those types of amenities available to guests renting a room, and they are certainly available to guests renting an entire home, condo, guest house, or apartment.


The coronavirus pandemic is making remote work a real possibility for many professionals worldwide. That means you don’t need to be stuck in close proximity to your workplace. You can live somewhere for two months and another for three weeks. Airbnb is watching this trend develop. In its fiscal first quarter, 24% of stays were for more than 28 days, a substantial increase from 14% in 2019.

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