It ’ s more about a structural change In socIety . PeoPle are wIllIng to exPlore , iT iS gLObAL ANd WE ArE EMbrACiNg iT . If that Is not PoPular , I don ’ t understand .”
Global Update : Profile
The report further stated that more than 2,800 jobs were directly lost as a result . The report asserted that if the trend continues , the impact on hotel revenue could jump to US $ 805 million by 2018 .
Naturally , Airbnb responded by saying the report ’ s assumptions are false because its presence in New York created more incremental travel opportunities for consumers who otherwise could not afford the trip .
First collaborator All that being said , one industry executive has concluded that it is better to partner . In early October , BridgeStreet Global Hospitality , a serviced apartment operator , unveiled a collaboration with Airbnb , offering a link to Airbnb ’ s products on the BridgeStreet website .
Without offering information about terms of the deals , BridgeStreet CEO Sean Worker says there is an “ extraordinarily small ” revenue share for Airbnb bookings originating through the BridgeStreet site and that , in fact , BridgeStreet has placed a few of its listings on the Airbnb site , and they have delivered a fantastic return . “ Great pickup , actually ,” Worker admits . So why cozy up and give even greater exposure to the perceived enemy that most hoteliers argue does not play on an even playing field by not paying its fair share of taxes or having to meet fire and safety regulations ? “ It became apparent through surveys our BridgeStreet customers want choices . Airbnb seemed like a good idea for us and through technology , our customers can do business with them ,” Worker says . “ We run about 92 % to 95 % occupancy as a portfolio . Our need for wholesale disposal is marginal at best . This is more of a client service more so than us putting a lot of inventory on Airbnb .”
Worker says that BridgeStreet is learning about its customer and their behavioral changes as a result of the collaboration . “ The shared economy is not limited to millennials ; statistics are not supporting that at all ,” he says . “ It ’ s more about a structural change in society . People are willing to explore , it is global and we are embracing it . If that is not popular , I don ’ t understand .”
Worker concludes that he prefers to “ test the edges and run right at potential threats ” like Airbnb , adding that he has very few concerns , mostly making sure his clients are choosing accommodations appropriate to their corporate travel policy . “ I see them more as a partner in the business eco-system ,” he says .
It ’ s more about a structural change In socIety . PeoPle are wIllIng to exPlore , iT iS gLObAL ANd WE ArE EMbrACiNg iT . If that Is not PoPular , I don ’ t understand .”
– Sean Worker
Will hotel companies – perhaps struggling independents – follow BridgeStreet ’ s lead and partner with Airbnb , listing some of its inventory with this sharing economy giant ? Will others follow ? Attempts to get comment about this potential from Airbnb ’ s Head of Global Hospitality Chip Conley were unsuccessful at press time . But time will tell whether Airbnb might be the industry ’ s next distribution partner , and likely sooner than later .
Airbnb facts
» More than 1.5 million listings in more than 34,000 cities in 190 countries ( more than 8,600 listings , 27,000 units in New York City alone )
» US $ 25.5 billion market capitalization , compared to US $ 24.6 billion for Hilton Worldwide , the biggest among public hotel companies
» Forecasted 80 million bookings in 2015 versus 40 million in 2014
» Accounted for 5 % of New York City rooms revenue in Q2 2015
» 10 % of all overnights in the United States are now booked at properties marketed by short-term rental groups such as Airbnb
Sources : STR , Airbnb , HVS Consulting , PKF Hospitality Research , D . K . Shifflet & Associates
www . hotelsmag . com December 2015 HOTELS 13