Within the “expanding hospitality arena,” major players are making moves to win the guest experience.
Airbnb is tackling this with the addition of services and relaunch of experiences, which chief business officer Dave Stephenson said is part of the company’s goal to “round out” the amenities at its short-term rental (STR) properties.
“People love it ... and we’re actually really surprised by the acceptance of the product, even without a stay on Airbnb, so it's actually been a way to introduce people to Airbnb through the services. It all works together in driving the flywheel,” Stephenson said at The Phocuswright Conference last month.
Services are also important for players like Marriott, according to Jennifer Hsieh, managing VP and category leader of endorsements and experiences.
“In our hotel product, services are the most experiential component, and in a leisure trip, that is the one thing that guests really remember,” Hsieh said, adding that Marriott is also working to marry its tours and activities business with its homes and villas portfolio.
The conversation later shifted to hotels—an area Airbnb is increasingly exploring.
“Sometimes [a trip] is going to be better in a home; sometimes it's going to be better in a hotel. We want to be able to provide the right service, the right kind of stay, the right kind of experience for the right person, right time, and now we're going to have all of that,” Stephenson said.
When asked for Casago’s perspective on the shift, CEO Steve Schwab said bringing hotels and STRs under one roof isn’t a bad thing, but he’s “curious” as to how the effort will pan out.
“When you think of Airbnb, they’ve taken the brand of this sector of the industry as their own, so it’s almost going to take a rebrand for Airbnb, and I wonder if they’re going to dilute their brand by doing this, but time will tell,” he said.
“It’s the same thing as Aston Martin making an SUV. It expands their TAM, but does it make sense? Not necessarily.”
The executives also addressed artificial intelligence, loyalty, evolving roles for hosts and recent news of Sonder’s collapse.
Below, watch the full discussion, moderated by Mitra Sorrells, SVP of content for Phocuswright and PhocusWire.
Executive panel: Hotels, homes and beyond — The expanding hospitality arena