It’s impossible to catch a break in the hospitality industry. In 2016, 75% of search and 51% of revenues expected to come from mobile devices and thus, it enables to provide users a personalized guest service.
Hotels are targeting business travelers with a proper mobile strategy. Even, most of our clients are demanding for an app like Airbnb, looking the remarkable success and a $25 billion valuation. Some estimates also say that it claims almost $1 billion in disruption revenue last year.
According to the recent data released by Airbnb, the graph shows leading up to November 17, and Airbnb confirmed a gratifying picture by carrying out a one-time targeted purge of around 1, 000 listing. Below graph shows November 17 as one of the typical days in the company’s operation and misrepresented the one-time eradication as a historical trend.
Airbnb is cheaper than hotels in Big Cities, including Boston, New York, etc.
2016 has already bought the study that highlights the battle between two industries. An argument over whether hotels or Airbnb rentals deliver a superior experience will continue for years. We have found just-released global rates of Airbnb offerings and traditional hotel rooms and surprisingly, got the result that Airbnb listings are less expensive than their hotel room counterparts, nonetheless in some of the latest U.S. cities.
There are many travelers booking an Airbnb than a hotel room in Chicago, Los Angeles, Boston, New York, Portland, Seattle and Washington, D.C., as they are finding rates lower than hotels, i.e. $80 a night. Some of the world’s most iconic international cities are home to Airbnb options, which is less costly than hotels. Most of the expensive cities like Sydney, Paris, London, and Toronto can help a traveler with affordable Airbnb listings.
Not only travelers, many businesses are thinking about the concept of Airbnb and searching Airbnb like app developers to build business and compete with a hotel industry.
Airbnb Valued at $25.5 Billion After Getting Fund of $1.5 Billion
The home-sharing startup has raised $1.5 billion funding in June and they have filed paperwork with the US Securities and Exchange Commission. Airbnb got fund from one of the largest private funding rounds ever and its investor includes General Atlantic, Hillhouse Capital Group, and Tiger Global Management.
— DavidPKey (@DavidPKey) December 9, 2015
Reportedly, Uber is looking to raise $2.1 billion. Behind the Uber and Xiaomi, Airbnb positioned as the world’s most valuable privately held startup. Airbnb is raising funds like this and adjournment an IPO as the startup wants to place its resources into an emerging and profitable market, especially in China. Airbnb is thinking to put its service in well-saturated markets like New York City and San Francisco to increases its revenue.
Room Sharing Facilities with Guests Increase demand for Airbnb Service
US hotels are acting like startups, providing facilities of golf course open, spa, etc. for non-guests to compete with Airbnb. Marriott Hotels are turning their properties into the workplace, rather than sleep. They have started Marriott ‘Workspace on Demand’ program in which users can book a place by the hour or the day for short-term working environments.
There are many Hotel group attracting younger people, responding to the shift in the approach to flexible working attitudes and also create an option of a revenue stream for those hotels that challenged by the success of the sharing economy.
Hotel Industry’s Efforts Seems to Be Effective. Hotels are Earning More Profits, and Business like Airbnb enjoys a “win-win.” If you are thinking about Airbnb type of app development, Let’s share your thought with us.