Why hoteliers want more Airbnb
The demand for Airbnb is skyrocketing as people seek to escape from the cold and harsh winters that plague much of the globe.
The platform has attracted millions of travelers around the world since its launch in 2011, but as demand for hotel rooms and properties has soared, hotels are looking for ways to keep the revenue flowing.
The hotel industry has struggled to find a way to keep up with the demand, but a new initiative is starting to look like a solution.
Airbnb has launched a new app that will allow guests to book and stay in apartments and condominiums for up to 30 nights in a row, in exchange for an hourly payment.
Airbnb said it will pay the owners of a suite $2,000 per night, and the money will be used to rent out the rooms to guests.
The service will also let guests pay a percentage of their Airbnb bill through credit cards.
While the Airbnb model has had mixed success, the startup’s founders are optimistic about its future.
The company said it had over $400 million in annual revenue last year, and will continue to expand its reach.
The app will be available for iPhone and Android this week, but is expected to be rolled out worldwide in the coming weeks.
The Airbnb platform is currently available in 24 countries and has been praised by many of the same business leaders who signed the landmark 2011 Airbnb settlement agreement.
Airbnb’s Chief Operating Officer Michael Schroeder, who has also served as CEO of the Walt Disney Company, told investors that the company was taking the opportunity to change the game for the hotel industry.
“This is a big deal,” he said in a conference call with analysts.
“We have a lot of room to grow.”
Airbnb has seen strong growth since launching the service in 2011.
In 2015, the company made $4.4 billion in revenue.
In 2016, it made $11.5 billion.
The startup is currently valued at more than $70 billion.
Airbnb says the platform has the potential to significantly help hotels retain more revenue and help them better compete with online booking services like Amazon and Apple, where users pay with credit cards, and hotels that offer rooms at a fixed price.
The new platform also could help the company become a leader in hotel-sharing services, as well as help the hotel and condo industry expand its business.
Airbnb CEO Michael Schroder said the company is looking to build an ecosystem that will help the industry stay on top of the digital age.
“With Airbnb, we have the tools to be the best, most powerful platform in the hotel/condo industry,” he told investors in the call.
“The way you are seeing it right now, we are taking the Airbnb brand and making it the most popular hotel/casino sharing platform in history.”
Airbnb said the platform will also allow people to book up to four rooms per night for as little as $2 a night.
Airbnb will allow users to pay monthly fees, and guests will receive payment in the form of a credit card, and a portion of the payment will be returned to the Airbnb community.
Airbnb told investors the payments will be made through an online banking service, and it plans to expand to other cities in the future.
Airbnb, which is based in San Francisco, has over 3,000 hotels around the globe, including a fleet of over 7,000 in the United States.