Airbnb’s rise is unstoppable. Seemingly out of nowhere, it entered the scene and, within just a few years, has had a major impact on hotel sector revenues—to the extent that some hotel chains have reconsidered their business models. It is estimated that more than 20% of leisure travellers use Airbnb, while OTAs, including Booking.com, now offer apartment rentals to avoid losing market share. We cannot deny the fact that hotels are responding. Some brands are acquiring and investing in residential product, but for the hotel sector this does not mean competing; rather, it means benefiting from an emerging market. What can hotels do to compete with Airbnb? One of the aspects most valued by guests who book through Airbnb is its instant availability and the accommodation options that allow them to explore a particular destination more deeply without the cost of a tour guide. To compete, it is only natural that we must first understand what Airbnb is doing well, so that we can put forward clear propositions and compete on a level playing field.

1. Know the Guest

Hotels need to understand why people choose this new way of travelling. What is the appeal of this type of accommodation? The most obvious reason is that it is a cost-effective alternative. It is well known that 70% of people who have used Airbnb chose it to save money. More than 50% do so because of its “unique accommodation” or the “availability of a kitchen” as an influential factor in their decision.

2. Add a Personal Touch to Service

Exceptional service and personalised touches are an excellent way to stand out from other properties. Airbnb has a reputation for being responsive to enquiries and issues, but hotels have the advantage of face-to-face interaction. Therefore, it is essential for hotel staff to remain consistently committed to exceptional customer service grounded in quality standards.