The Airbnb Opportunity
Someone recently posted a summary of Airbnb's success, and the results were, quite frankly, startling. In fact, for a hotel owner, you might say they were flat-out terrifying.
Airbnb has hosted 60,000,000 guests since they were launched. In 2017 alone, they will host over 100,000,000. That's an awful lot of lost revenue for the hotel world. And it's only going to get worse.
There are several responses that hoteliers can take... one is to whine, wring their hands, and fret. And then to keep on doing exactly the same thing that they've always done, and then continue to hemorrhage revenues. Instead of addressing the "big picture" and the REAL problem, they think they can scrimp their way out of falling revenues by shaving 2 more cents off of a bottle of shampoo.
Then they can try to lobby... to legislate Airbnb out of business... which simply won't work. Airbnb is here to stay.
The option that no one is talking about is change.
Change to what, though? And that's the brick wall that we run headlong into... mostly because no one is taking the time to answer the most important question of the equation... WHY are people using Airbnb? What is the appeal? What is the payoff? What are they getting out of that experience that they are NOT getting in hotels?
As with most critically important issues, this one is particularly multi-faceted and complex. It revolves around several key elements that the hospitality industry MUST address, if it wishes to not be devoured alive by Airbnb...
1) Financial Airbnb guests are tired of what THEY perceive as over-paying or being price gouged. Every time they are forced to check in to the Hampton Inn in Outer Podunk, AL, and pay $150/night for a room, especially when the towels are thin and cheap, and the toilet paper is single-ply and greasy and the hot tub is perpetually broken... they smolder. In their minds, they see the Patels driving off to yet another mansion in yet another Corvette. And they resent it deeply. Airbnb is almost always a cheaper way to go. And yet this isn't the main thing driving Airbnb's success... compared with the next one, it's an easy one to address. No, the next one is the 800lb gorilla in this equation...
2) Social Element One of the biggest draws to Airbnb, according to Airbnb guests themselves, is the social aspect. We, as a society, have learned to isolate ourselves in our lives, our work, and especially when we travel... and yet as human beings we crave social interaction, warmth, acceptance, kindness, friendship, love, and interaction. The movie "Crash" that came out in 2004 addressed this very thing... the premise was that we as a society are so desperate for human interaction that we "crash" into each other to get it... even if just for a moment.
Here's a personal account that may help illustrate this.
Ironically, I'm a hospitality photographer by profession, and a damn good one. One of the best in the country, as a matter of fact. I shoot for Marriott, Hilton, IHG, and independents alike. I'm a nationally recognized and award-winning architectural photographer. And yet, when I travel I'm far more likely to stay at an Airbnb than a Fairfield Inn or a Garden Inn or a Crowne Plaza. Why? Mary Lou and John.
Mary Lou and John are farmers from Nebraska. They have a cabin on their 960-acre farm next to their 120-year-old farmhouse. No pool. No hot tub. No exercise room. No internet. No wifi. No cable. No TV. They decided to turn it into an Airbnb to supplement their farm income. By hospitality standards, what they have in the way of amenities is laughable. And they're 20 miles off the freeway. And did I mention there is no attached bathroom? You have to cross the driveway and go into the main house to take a shower or go to the bathroom. And yet, they are almost booked solid.
What they DO have is a warm, cozy kitchen with a well-worn kitchen table where, on our first night there, we sat while they shared their meal with us because we came in late... the best damn beef I've ever tasted, from their own herd. And then we talked for 2 hours. They have 2 dogs, Banjo and Emmie... and roughly a dozen barn cats craving attention. And a rooster who crows at the butt-crack of dawn. And they have personal interaction, warmth, kindness, stories, listening ears, empathy, and a genuine interest in us... who we were... what we were about... They made us feel like they really cared about us. When we stayed with them when we traveled across country for an interview my wife had, they asked if they could pray over us... and we joined hands around that kitchen table and listened to their prayer of well-wishes. When we came back through the other way, and told them that she had gotten the job, they smiled and knew they had had a hand to play in that.
We became fast friends on that first stay... which turned into several stays now... in fact, we look forward to visiting them each and every time we cross the country. They're not just hosts... they're our friends. The dogs know us by sight and mob us when we arrive, smothering us in licks and joyful yelps. Mary Lou squeals when she sees us, and gives us a big hug... and an invitation to join them for supper.
And whether it be standing outside in the dark and gawking incredulously at the unbelievable night sky, unhindered by light pollution with the entire Milky Way there in brilliant display in all of its splendor, or burrowing under the down comforter in the cabin to the light of the crackling and warmth of the wood burning stove... we savor every minute. We hate leaving. And it cost us a whopping $50...
THAT is what you're up against, guys. If you're a Hilton property, and you think Marriott is your nemesis.... you're missing the boat. Mary Lou and John are.
So, why did I title this the "Airbnb Opportunity"? Simple. Instead of moaning and groaning about the toll that Airbnb is taking, realize that maybe... just maybe... this could be the most profoundly profitable opportunity ever to hit the Hospitality Industry. The rise of Airbnb is one of those earth-shattering crossroads that FORCES us to have to reinvent ourselves... think outside the box, leave our comfort zones, break out of the mold, reinvent the mousetrap... and in the process give birth to new, innovative, and creative ways to reach an audience hungry for what we're obviously not currently providing.
The early adopters... those smart enough to read the tea leaves and ride the swells of the changing market will find profound success... they'll be unstoppable. Those that cling tenaciously to "the way it's always been" will simply be out of business in the long run. We've reached a "Day Of Reckoning" in the hotel business. We can underscore the reality of the definition of insanity by continuing to do what we've always done, expecting a different result... or we can take a deep breath, and get EXCITED about the future... and turn on the valve of our own creativity and innovation.
Airbnb has hosted 60,000,000 guests since they were launched. In 2017 alone, they will host over 100,000,000. That's an awful lot of lost revenue for the hotel world. And it's only going to get worse.
There are several responses that hoteliers can take... one is to whine, wring their hands, and fret. And then to keep on doing exactly the same thing that they've always done, and then continue to hemorrhage revenues. Instead of addressing the "big picture" and the REAL problem, they think they can scrimp their way out of falling revenues by shaving 2 more cents off of a bottle of shampoo.
Then they can try to lobby... to legislate Airbnb out of business... which simply won't work. Airbnb is here to stay.
The option that no one is talking about is change.
Change to what, though? And that's the brick wall that we run headlong into... mostly because no one is taking the time to answer the most important question of the equation... WHY are people using Airbnb? What is the appeal? What is the payoff? What are they getting out of that experience that they are NOT getting in hotels?
As with most critically important issues, this one is particularly multi-faceted and complex. It revolves around several key elements that the hospitality industry MUST address, if it wishes to not be devoured alive by Airbnb...
1) Financial Airbnb guests are tired of what THEY perceive as over-paying or being price gouged. Every time they are forced to check in to the Hampton Inn in Outer Podunk, AL, and pay $150/night for a room, especially when the towels are thin and cheap, and the toilet paper is single-ply and greasy and the hot tub is perpetually broken... they smolder. In their minds, they see the Patels driving off to yet another mansion in yet another Corvette. And they resent it deeply. Airbnb is almost always a cheaper way to go. And yet this isn't the main thing driving Airbnb's success... compared with the next one, it's an easy one to address. No, the next one is the 800lb gorilla in this equation...
2) Social Element One of the biggest draws to Airbnb, according to Airbnb guests themselves, is the social aspect. We, as a society, have learned to isolate ourselves in our lives, our work, and especially when we travel... and yet as human beings we crave social interaction, warmth, acceptance, kindness, friendship, love, and interaction. The movie "Crash" that came out in 2004 addressed this very thing... the premise was that we as a society are so desperate for human interaction that we "crash" into each other to get it... even if just for a moment.
Here's a personal account that may help illustrate this.
Ironically, I'm a hospitality photographer by profession, and a damn good one. One of the best in the country, as a matter of fact. I shoot for Marriott, Hilton, IHG, and independents alike. I'm a nationally recognized and award-winning architectural photographer. And yet, when I travel I'm far more likely to stay at an Airbnb than a Fairfield Inn or a Garden Inn or a Crowne Plaza. Why? Mary Lou and John.
Mary Lou and John are farmers from Nebraska. They have a cabin on their 960-acre farm next to their 120-year-old farmhouse. No pool. No hot tub. No exercise room. No internet. No wifi. No cable. No TV. They decided to turn it into an Airbnb to supplement their farm income. By hospitality standards, what they have in the way of amenities is laughable. And they're 20 miles off the freeway. And did I mention there is no attached bathroom? You have to cross the driveway and go into the main house to take a shower or go to the bathroom. And yet, they are almost booked solid.
We became fast friends on that first stay... which turned into several stays now... in fact, we look forward to visiting them each and every time we cross the country. They're not just hosts... they're our friends. The dogs know us by sight and mob us when we arrive, smothering us in licks and joyful yelps. Mary Lou squeals when she sees us, and gives us a big hug... and an invitation to join them for supper.
And whether it be standing outside in the dark and gawking incredulously at the unbelievable night sky, unhindered by light pollution with the entire Milky Way there in brilliant display in all of its splendor, or burrowing under the down comforter in the cabin to the light of the crackling and warmth of the wood burning stove... we savor every minute. We hate leaving. And it cost us a whopping $50...
THAT is what you're up against, guys. If you're a Hilton property, and you think Marriott is your nemesis.... you're missing the boat. Mary Lou and John are.
So, why did I title this the "Airbnb Opportunity"? Simple. Instead of moaning and groaning about the toll that Airbnb is taking, realize that maybe... just maybe... this could be the most profoundly profitable opportunity ever to hit the Hospitality Industry. The rise of Airbnb is one of those earth-shattering crossroads that FORCES us to have to reinvent ourselves... think outside the box, leave our comfort zones, break out of the mold, reinvent the mousetrap... and in the process give birth to new, innovative, and creative ways to reach an audience hungry for what we're obviously not currently providing.
The early adopters... those smart enough to read the tea leaves and ride the swells of the changing market will find profound success... they'll be unstoppable. Those that cling tenaciously to "the way it's always been" will simply be out of business in the long run. We've reached a "Day Of Reckoning" in the hotel business. We can underscore the reality of the definition of insanity by continuing to do what we've always done, expecting a different result... or we can take a deep breath, and get EXCITED about the future... and turn on the valve of our own creativity and innovation.
Comments
Post a Comment