Hotels

Hotel experts gang up on Airbnb

There’s a few cracks appearing in the Airbnb model that could threaten their current success, according to hotel industry experts.

Speaking at the HotelsWorld 2017 conference in Sydney this week, some of the key issues include an inability to police all the Airbnb landlords, safety concerns, and hotels disrupting their products to compete in the sharing community.

Per Australian Financial Review, Airbnb rooms are even starting to reach the same level of hotel rates, leaving even less points of difference with hotel operations.

“How are you going to police all these landlords? That’s a big potential issue, as well as quality and safety issues,” Dream Hotels Group Managing Director Kevin Wallace said at the conference, per AFR.

“I don’t know how much Airbnb is reporting [rogue landlords], but you see a lot of Uber rogue drivers … a lot of corporates are disallowing people from using Airbnb due to personal and fire safety.

“You will see hotels come back to fill that space, because there are problems in the [Airbnb] space, especially in the way they are being provided.”

It’s an interesting comment, given Airbnb has really stepped up its business offerings, even partnering with travel agent giants Flight Centre to reach more corporates.

Per AFR, Mantra Group’s Chief Operating Officer Tomas Johnsson added that professionalism of services is something that sets hotels and Airbnb apart.

“As this industry matures, there will be need for more professional delivery of these products,” Johnsson said.

Hotels are also tapping into the “local experiences” trends – similar to Airbnb’s Trips product – as part of their strategy of mainstream hotels taking back their market share by offering this on top of highlighted safety features.

Per AFR, the ‘lifestyle hotel’ is something that’s started popping up to rival Airbnb and sharing economies.

Looking at our own country, and AccorHotels is set to open several lifestyle hotels for guests seeking a truly authentic and local experience to complement their hotel stay.

On top of that, smaller brands like Veriu, which recently launched its Broadway property in Sydney, are coming onto the scene offering “authentic local experiences” specific to the surrounding neighbourhood, plus extras like their complimentary ‘explorer bicycles’ for guests to get into the local areas.

Veriu Broadway is an $18 million conversion of a former warehouse space offering self-contained studios, and loft style apartments.

Per AFR, even the cheaper hotel groups like youth hostels are beating Airbnb on price.

“Even Airbnb is not operating at the cheapest level while YHA is big on economies of scale,” YHA Australia Chief Executive Julian Ledger said, per AFR.

Meanwhile, Airbnb’s closest competitor, HomeAway, could be stung by regulations in a similar vein to Airbnb.

HomeAway Regional Director for Australia and NZ, Anton Stanish, said over-regulation would put the industry out of business, despite acknowledging the need for some regulations.

HomeAway is, per AFR, looking to add to its competitive streak by providing 85 per cent of its holiday rentals in more regional areas.

Law firm Ashurst also released a report recently, which per AFR, suggests the industry could be getting a mammoth injection from the federal government, who hopes to have 20,000 new rooms by 2020.


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

News

“Unfortunately, the world changed”: McGowan suspends WA border reopening indefinitely

The western state will be keeping its borders firmly closed, as Premier Mark McGowan buys more time to bolster citizens against a “flood of the disease”.

Share

CommentComments

Tourism

Thailand to resume ‘Test & Go’ quarantine waiver from February

Pack your suitcase and ready your sinuses for a holiday in Thailand that promises to greet you with a lovely PCR test.

Share

CommentComments

Hotels

AUSSIE FIRST: Accor unveils next gen Mercure Hotels with new Melbourne property

While away your Friday afternoon by perusing through some stunning pictures of Accor’s swanky new-look Mercure in Doncaster.

Share

CommentComments

Aviation

Qantas threatens to slash cabin crew wages by “almost half” in latest union pay row

by Ali Coulton

The national carrier is once again facing condemnation from unions after applying to scrap its long-haul crew contract in an effort to “push through” a new deal.

Share

CommentComments

Aviation

Operation nest egg: Air New Zealand helps relocate rare kiwi chicks

The airline is doing gods work by flying these three little cuties to their new home where they were treated to an all-you-can-eat worm buffet.

Share

CommentComments

Tourism

Say ‘Aloha’ to the Hawaiian Islands and take a trip that gives back

by James Harrison

Check out the beauty, wonder, and excitement of the islands of Hawaii and explore a holiday destination where you can malama.

Share

CommentComments

Cruise

Crystal Cruises suspends operations as parent company files to windup business

The Hong Kong supercruise operator is winding up operations, leaving the future of its subsidiaries unknown.

Share

CommentComments

Tourism

Celebrity chef duo Gary Mehigan and Manu Feildel star in new tourism campaign for Japan

The staff at Travel Weekly have been rewatching our favourite anime to reminisce about Japan, but Gary and Manu might appeal to a broader audience than Pokemon reruns.

Share

CommentComments

Tourism

Aussie tourism took off in December, but remians well below 2019 levels

If these stats are anything to go by, we’ll be back to worrying about overtourism and carbon footprints in no time! Wait…

Share

CommentComments

Destinations

US slaps “do not travel” warning on Australia as Europe tightens border restrictions

The prospect of fewer American tourists milling about at Darling Harbour we can deal with, but if we have to go one more year without a European summer we’re going to go over the deep end.

Share

CommentComments

Aviation

Union survey reveals transport workers asked to return while COVID positive

Workers who answered the survey, which included passenger transport and aviation workers, are also calling for free RATs. That’s rapid antigen tests, not rodents as we first assumed.

Share

CommentComments

Wholesalers

“This isn’t a label we wish to keep”: Intrepid recertified as world’s largest travel B Corp

The tour operator has gone through another extensive company-wide audit to maintain its title, so why is it looking to pass the baton you may ask? Click here.

Share

CommentComments