Airbnb Is Not Against The Hotels, It Is The New Distribution Channel

Leema Rosali — Senior VP – Engineering, AxisRooms
Leema Rosali — Senior VP – Engineering, AxisRooms

Table of Contents

For independent hotels, embracing Airbnb as a distribution channel is becoming an obvious choice. Airbnb offers hotels the chance to reach a larger audience with minimal upfront costs. While some see Airbnb as a competitor to traditional hotels, it’s more accurate to consider it as an additional way to distribute your rooms.

Instead of viewing Airbnb as a threat, hoteliers should see it as an opportunity to expand their customer base. While it’s true that Airbnb has changed the way people book stays, it doesn’t take away from what hotels provide—comfort, security, and a reliable service.

Key Takeaways:

  • Airbnb is a valuable distribution channel for independent hotels.
  • Small hotels and boutique properties can benefit from Airbnb’s unique, experience-driven audience.
  • Using a Channel Manager and PMS Integrations helps streamline operations and maintain pricing consistency across multiple platforms.
  • Early adoption of Airbnb can help hotels stay competitive and attract a new customer base.

The Role of Airbnb in Today’s Hotel Industry

In the past, most hotels relied on OTAs (Online Travel Agents) like Booking.com and Expedia for distributing their rooms. But these OTAs often charge high commissions, cutting into hotel profits. On the other hand, Airbnb offers a more flexible and affordable alternative, helping hotels reach customers who might not have found them through traditional channels.

Airbnb isn’t just for home rentals—it also lists boutique hotels and smaller properties. Independent hotels that offer a unique experience can benefit greatly by listing on Airbnb, as it allows them to reach a different type of traveler. However, it’s important to note that not all guests will prefer an Airbnb stay over a traditional hotel room. While Airbnb offers unique stays, the full range of services and comfort that hotels offer is unmatched.

Key Benefits of Airbnb for Independent Hotels

Benefit

How it Helps Hotels

Wider Audience Reach

Airbnb gives hotels access to a large, global audience.

Lower Costs

Airbnb typically charges lower fees compared to OTAs.

New Customer Base

Hotels can target travelers looking for more personalized stays.

Flexible Pricing

Hotels have more freedom in setting prices and availability.

One of the main reasons Airbnb has become so successful is that it caters to the growing trend of "experiential travel." Today's travelers are looking for more than just a place to sleep; they want a local experience. Airbnb has tapped into this demand by offering stays in homes, apartments, and small hotels that feel more personalized.

For hotels, this trend presents an opportunity. Boutique hotels, in particular, can offer unique local experiences, such as guided tours or locally inspired amenities, to appeal to guests who are looking for something different from a standard hotel experience.

Hotels can take inspiration from Airbnb’s success by offering something beyond just a bed and breakfast. The goal should be to create experiences that guests can’t get elsewhere.

How Hotels Can Use Airbnb as a Distribution Channel

For independent hotels, Airbnb offers a great chance to reach a new audience. Here's how hotels can make the most out of this opportunity:

1. Highlight What Makes Your Hotel Unique

Airbnb is all about unique experiences, so hotels need to showcase what makes them different. Whether it’s a boutique feel, personalized service, or special amenities, make sure you highlight what sets your hotel apart.

2. Keep Pricing Consistent

It’s important to maintain consistency in pricing across all platforms, including Airbnb. While Airbnb offers more flexibility than OTAs, it’s essential not to undercut your own pricing strategy. Offering exclusive deals, like free upgrades or local tours, can help attract more guests while keeping your prices fair.

3. Use a Channel Manager for Seamless Integration

Managing multiple booking platforms can be overwhelming. Using a Channel Manager like AxisRooms can help hotels synchronize their inventory and pricing across all platforms, including Airbnb. This ensures that rooms are always available and up-to-date, reducing the chances of overbooking A PMS Integration with Airbnb also allows for easy management of guest information, payments, and more, making the whole process more efficient.

4. Leverage Airbnb’s Marketing

Airbnb is a trusted platform with a strong brand presence. Hotels can benefit from this by listing their property on the platform, gaining access to Airbnb’s large and loyal user base. It’s an easy way to reach customers who already trust the platform and are looking for new places to stay.

5. Track Performance and Adjust

Once your hotel is listed on Airbnb, it’s crucial to monitor how well your listing is performing. By tracking bookings, guest reviews, and occupancy rates, hoteliers can adjust their approach to improve visibility and increase bookings.

The Future of Hotels on Airbnb

The next big shift for hotels on Airbnb will be integrating more traditional hotel inventory into the platform. In the next 18 months, it’s likely that more hotel chains, especially smaller ones, will announce partnerships with Airbnb, offering their rooms on the platform.

As this trend grows, independent hotels will want to be among the first to take advantage of Airbnb’s broad reach and more flexible distribution model.

How This Impacts Hotel Distribution Strategy

While Airbnb might not provide long-term revenue growth on its own, it offers hotels a new way to attract more customers. Early adopters of Airbnb will have an edge, as they can capitalize on the curiosity of travelers who are interested in the Airbnb model but still prefer the security and comfort of a traditional hotel room.

Hotels that embrace Airbnb as a distribution channel will be better positioned in a changing market where travelers are seeking more choice and flexibility.

Table: Airbnb vs. OTAs for Hotels

Feature

Airbnb

Traditional OTAs

Commission Fees

Lower (3%-5%)

Higher (15%-25%)

Global Reach

Massive global audience

Wide audience, but mainly transactional

Price Control

More flexible pricing structure

Fixed pricing

Guest Experience Focus

Authentic, personalized experiences

Standardized services and amenities

Flexibility

High flexibility for hoteliers

More rigid pricing policies and contracts

Product Focus: AxisRooms Channel Manager

A key tool for hotels to manage their presence across multiple platforms, including Airbnb, is a Channel Manager. With AxisRooms' Channel Manager, hotels can easily synchronize their pricing, availability, and inventory in real-time across all booking platforms. This ensures that hotel information is always accurate, reducing the risk of overbookings.

AxisRooms' Channel Manager offers hoteliers flexibility in pricing while maintaining consistency across channels. It gives complete control over rates and availability. For hotels looking to maximize their reach on Airbnb, this integration helps streamline operations and boost revenue. With AxisRooms, hoteliers can manage their distribution strategy more efficiently, all from one interface.

Conclusion: Airbnb Is Not a Threat, But an Opportunity

Airbnb is not a competitor to traditional hotels; it is an additional distribution channel that can help independent hotels increase visibility, reach new customers, and boost revenue. Instead of fearing this platform, hoteliers should embrace it as part of their overall Hotel Revenue Strategy. By listing on Airbnb and offering unique experiences, hotels can tap into a new market of travelers who are seeking more personalized stays.

With the right approach and tools like PMS Integrations and Channel Managers, hotels can easily manage their presence across multiple platforms, including Airbnb, and continue to grow in today’s ever-changing hospitality landscape.