{"id":17842,"date":"2016-11-18T13:44:16","date_gmt":"2016-11-18T18:44:16","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/airbnb-my-host-wants-to-be-my-roommate-what-does-this-mean\/"},"modified":"2016-11-18T13:44:16","modified_gmt":"2016-11-18T18:44:16","slug":"airbnb-my-host-wants-to-be-my-roommate-what-does-this-mean","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/airbnb-my-host-wants-to-be-my-roommate-what-does-this-mean\/","title":{"rendered":"Airbnb: My host wants to be my roommate. What does this mean?"},"content":{"rendered":"

91% of travelers want to \u201clive like a local\u201d[1]<\/a>. These travelers have a goal of feeling a strong sense of connection to the city they are exploring. They want to immerse themselves into a culture in a way staying at a hotel will not allow them to. Travelers choose to book accommodations with Airbnb because it allows them to feel immersed in a city as if they are locals, getting the raw experience of what it would be like to live there. For example, if you chose not to stay in an Airbnb in South Korea, you may not know that most apartments use codes, rather than keys, to allow you to enter the apartment. It is examples like this where unique cultural experiences can be missed by staying at your preferred SPG or Marriott (now one in the same) hotel.<\/p>\n

What does Airbnb do? Airbnb, founded in 2008, allows those looking for a play to stay to rent accommodation space[2]<\/a>. Airbnb is a peer-to-peer platform, for which it receives revenues through the transactions processed on this platform. Airbnb receives revenues by charging guests 9 \u2013 12% service fee for their reservation and charging hosts 3% service fee to cover the cost of the transaction[3]<\/a>. By the end of 2015, Airbnb had about 7 to 8 million guests, and was valued at over $10 billion[4]<\/a>.<\/p>\n

Millennials are driving Airbnb\u2019s popularity. In the past year, millennials accounted for about 50% of Airbnb patrons, compared to 28% of those who booked using Marriott[5]<\/a>. The accommodation preferences of millennials are particularly important to the travel industry since millennials have indicated a stronger desire to travel internationally than any other generation by a 23% margin[6]<\/a>. Further, for the US, millennials are expected to account for $855 billion of the travel and tourism industry.<\/p>\n

 <\/p>\n

[7]<\/a>\"door-lock\"<\/a><\/p>\n

It has been estimated that hotels lose approximately $450 million in direct revenues to Airbnb[8]<\/a>. One reason this decline is expected to continue due to the \u201crepeat purchase\u201d factor of the Airbnb consumer base. Those that book a stay with Airbnb are 22% likely to book another Airbnb stay; and, those that have booked five Airbnb stays are over 50% likely to book another Airbnb stay[9]<\/a>. With Airbnb\u2019s growth and popularity, the traditional players in the hotel industry are starting to lose traction.<\/p>\n

But the traditional hotel industry includes one fundamental offering that Airbnb is missing \u2013 the concierge service, which can be a quick win for Airbnb. For travelers who are not pros at google, yelp or any other app that helps you plan your vacation, the lack of an Airbnb concierge service can be a problem and an inhibitor to deciding to book with Airbnb. Also, a concierge service can be beneficial for guests who are travelling for a short time span and do not have ample time to plan their itinerary in advance.<\/p>\n

Airbnb can offer this concierge service by allowing the Airbnb host to stay with the guest during the rental time period. Not in the same room of course (that would be awkward), but in the same building or house, with the host signing up to be your personal tour guide. Already, about 81% of hosts share the home in which they live[10]<\/a>. Further, in the past year, those who stayed in an Airbnb spent about a quarter less per night than hotel guests[11]<\/a>. This price gap is an opportunity for Airbnb hosts to charge an additional fee to be help their guests feel completely immersed in the culture. Who is a better person to tell you how to get to the nearest train, or what interesting local events are occurring that night than someone who actually lives there?<\/p>\n

\"airbnb-hotel-price-gap\"<\/a>[12]<\/a><\/p>\n

(754 words)<\/p>\n

 <\/p>\n

[1]<\/a> Airbnb, \u201cEconomic Impact,\u201d https:\/\/www.airbnb.com\/economic-impact, accessed November 2016.<\/p>\n

[2]<\/a> Ahmed Mahmoud, \u201cThe Impact of AirBnb on Hotel and Hospitality Industry,\u201d HospitalityNet, March 7, 2016, [http:\/\/www.hospitalitynet.org\/news\/4074708.html], accessed November 2016.<\/p>\n

[3]<\/a> Ibid.<\/p>\n

[4]<\/a> Ibid.<\/p>\n

[5]<\/a> Jack Beckwith, \u201cAirbnb revenues up 89 percent, driven by Millennials,\u201d Slice Intelligence (blog), August 29, 2016, [https:\/\/intelligence.slice.com\/airbnb-revenues-89-percent-driven-millennials\/], accessed November 2016.<\/p>\n

[6]<\/a> Marissa Gluck, \u201cWhat Matters Now: Travel.,\u201d Huge, July 12, 2013, [http:\/\/www.hugeinc.com\/ideas\/report\/what-matters-now-travel], accessed November 2016.<\/p>\n

[7]<\/a> Source: Ebay, \u201cDigital Door Lock Electronic keyless Keypad Mounted Milre Force MI-6300D Silver,\u201d [http:\/\/www.ebay.com\/itm\/like\/221526837578?lpid=82&chn=ps&ul_noapp=true], accessed November 2016.<\/p>\n

[8]<\/a> Ahmed Mahmoud, \u201cThe Impact of AirBnb on Hotel and Hospitality Industry,\u201d HospitalityNet, March 7, 2016, [http:\/\/www.hospitalitynet.org\/news\/4074708.html], accessed November 2016.<\/p>\n

[9]<\/a> Robert Moore, \u201cAirbnb Data Analysis: 6 Million Users by Year-End, Only 20% Active,\u201d RJ Metrics (blog), April 27, 2012, [https:\/\/blog.rjmetrics.com\/2012\/04\/27\/airbnb-data-analysis-6-million-users-by-year-end-only-20-active\/], accessed November 2016.<\/p>\n

[10]<\/a> Airbnb, \u201cEconomic Impact,\u201d https:\/\/www.airbnb.com\/economic-impact, accessed November 2016.<\/p>\n

[11]<\/a> Jack Beckwith, \u201cAirbnb revenues up 89 percent, driven by Millennials,\u201d Slice Intelligence (blog), August 29, 2016, [https:\/\/intelligence.slice.com\/airbnb-revenues-89-percent-driven-millennials\/], accessed November 2016.<\/p>\n

[12]<\/a> Ibid.<\/p>\n","protected":false},"excerpt":{"rendered":"

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