Reality check: Airbnb – Long Way To Go to Become an OTA | PhocusWire

Airbnb a long way to go to be an OTA

Uphill windy road to become  an OTA

Source: Reality check: Airbnb still has a long way to go after HotelTonight deal | PhocusWire


This is a follow up on the previous News Release on the HotelTonight Airbnb deal . In this followup Max Starkov of HEBS Digital Marketing examines why Airbnb wants to be an OTA, why they may not be a great idea and what they have to do to get there. He suggest that the reasons are a matter of growth opportunity and declining expectation for rental growth and user fees.

Currently Airbnb charges 4 to 8 % for the host and 6 to 10% for guests. But the trend is moving away from guest fees as the OTAs get into Airbnb Vacation rental with no guest fees.

The writing is on the wall so Airbnb want to hedge its bets and get into the mainstream business head to head with OTAs.

That the reason they want HotelTonight. Its not that they need the technology as HT is way behind on instant bookings and many of its properties are still connected via a manual extranet. Airbnb has ample capability in mobile also so that not a reason to want HT.

It’s not going to be a happy marriage for many hotels who think that Airbnb is steeling their business.

The trip to becoming an OTA is a long and windy road with many pitfalls along the way. It is a fiercely competitive market, not like being a first mover as in the past.

Read the article to learn what it entail and what there options are.

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