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Is Airbnb a Threat to Traditional Accommodation?

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Submitted By jaymelissa
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Is AirBnB a threat on traditional accommodation?
With the rapid growth of Airbnb, I think that it poses a real threat to traditional accommodation offerings in the Caribbean. AirBnB is an online service which allows hosts to rent out their homes or spare bedrooms. This has become a threat to the traditional hotel companies, which are now trying to figure out ways to compete in the sharing economy. In the sharing economy, any person can list their own property online for rent which AirBnB can clay claim to being the world’s largest hotel chain without owning a single room. Airbnb has become more appealing to investors by its low overhead.
Compared to traditional hotels, the company doesn’t have to worry about the high turnover rates of bellhops and front desk clerks like hotels do, and it doesn’t have to concern itself with real estate prices and franchise partnerships. Many people who have used AirBnB said that hotels might offer predictability, but they are looking for an adventure, which they never found in a hotel. Also they considered it to be much cheaper than traditional hotel accommodation and that they can exist a little more locally and authentically.
Hotels are already feeling the effects of Airbnb’s approach to room rentals, but continued growth could force the hotels to lower room prices. Traditional hotels should form partnership with AirBnB. They could offer packages to guest of AirBnB at a reasonable cost that would be attractive to the guest. Also Traditional hotel need to adapt to the new technological trends such as mobile checking in by guest.

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