Whats to come
Last year, The Guardian ran a story about “how Airbnb took over the world.” This piece explored how Airbnb grew from a humble startup into a $30 billion firm. That valuation is old, though, as Airbnb has plans to go public next year with an even bigger price tag. By contrast, Marriott – a well-established hotel chain all over the world – has a valuation of $46 billion. IHG, which owns venerable brands like Holiday Inn, has a market cap of $11.1 billion.
In 11 years, Airbnb is worth almost as much as Marriott, a 93-year-old company, and IHG, whose start was back in 1946 as InterContinental Hotels and Resorts.
In large part, due to Airbnb’s meteoric growth, many people have been suggesting that it may be replacing the hotel industry. Hotels are on the decline, and Airbnb rentals are trending upwards. While this is partly true, the real story is a little more complicated.
People Like Hotel Services
While Airbnb’s growth is exploding, many people still don’t use the platform because they miss hotel services. In particular, 38% of people who avoid sites like Airbnb do so because they prefer hotel services. 37% say they prefer hotel property amenities, and 17% are concerned about safety. 38% think staying in someone else’s home would be uncomfortable.
Hotels provide a level of anonymity, and there is some comfort in dealing with a faceless corporation that offers things like maid service. A hotel gives you a predictable experience, and you know what you’re going to get (within reason – sometimes even the most prominent chains have poor quality hotels in their portfolio).
The vanilla traditional Airbnb experience does not incorporate this level of hospitality. As such, traditional Airbnb rentals have a segment of the population with which they will never resonate. Of course, since Ayvio focuses on providing hotel-like hospitality to Airbnbs and Vrbos, our company solves these issues for this demographic.