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AirBNB has completely upended the way people around the world choose vacation accommodations. Now Marriott, the world’s largest hotel company is fighting back by developing expanding its own home-sharing business to the U.S. Bloomberg reports:
Marriott International Inc. is expanding its home-sharing business to the United States, becoming the latest hotel operator to challenge Airbnb at its own game and blurring the distinction between home sharing and the traditional hospitality companies.
Marriott, the world’s largest hotel company, plans to expand the home-sharing pilot it launched in Europe last year, adding 2,000 home rentals in U.S. vacation destinations such as Lake Tahoe and Bar Harbor, Maine. The initiative is small — the company has 1.3 million hotel rooms around the world — but important for Marriott, because the people who stay at its hotels on business might want a rental house for a bachelor party or family vacation.
“For younger generations booking group travel, it’s not ‘Who’s in charge of the hotel?’ It’s ‘Who’s in charge of the Airbnb?’” said Michael Bellisario, an analyst at Robert W. Baird & Co. “Home sharing is here to stay. The best thing hotel companies can do is embrace it.”
Established lodging companies have increasingly sought a response to Airbnb as the app-driven service has grown from scrappy upstart to a global giant with a private market valuation of $31 billion, which is bigger than most publicly traded hotel companies. Hyatt Hotels Corp. made a strategic investment in home-sharing startup Oasis Collections in 2017, a year after Accor acquired luxury-rental company Onefinestay.
In some corners of the industry, Airbnb is viewed as a fearsome competitor with a large, diverse array of offerings — and a reputation for flouting hotel taxes and local regulations. Other hospitality executives, including Marriott Chief Executive Arne Sorenson, have taken a more neutral attitude, arguing that home sharing generally attracts a different type of traveler than traditional hotels.
“Many of their customers are choosing to stay with them for one reason only, and that’s because they’re cheap,” Sorenson said in a recent interview for Bloomberg Television. “We’re not really in the bottom part of the market — our business is never going to be to provide the cheapest stay.”
Read more here.
Jeremy Jones, CFA
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