Airbnb just announced new API partnerships, from the four appointed last year. The list shown below will show a few familiar names. We will look at this in more detail over the next two weeks.
Initial reaction is that there must a slightly modified strategy. One or two are clear selections as to why, the others await analysis.
No doubt some businesses will feel left out in the cold and a lot of excellent inventory is being left on the table. Some systems and managers will be frustrated, but we do see a PMS focus here direct to the asset manager rather than a mass-channel led strategy. What do the purest channels think about this?
This is another push in the professional direction with more of a quality inventory focus, but many data issues still remain and the overall marketing strategies for all companies need constant tweaking.
What does this mean for you?
Certainly Airbnb are reshaping the system to make it more VR manageable. A more open API opportunity must also be on the horizon now and will lower the premium “exclusive partner” PMS fees. The only questions then is how Airbnb use machine learning on the bookable quality from the growing quantity available.
Certainly Airbnb are reshaping the system to make it more VR manageable.
If you start to use or already use Airbnb, everybody will need to up their game as inventory grows and outstrip bookers. So back to photos, drones, pricing, 3-D imaging, local experiences, freebies, amenities etc.
The intermediaries will add new charges on top of Airbnb of course. We have already seen commentary on 7.5% commissions (2.5% over airbnb, plus guest fees of course). So prices will go up and manager margins down. We expect managers to raise their prices however via some systems to cover this and use Airbnb as part of a bigger marketing spread.
The intermediaries will add new charges on top of Airbnb of course.
Who spends the most on OTA marketing may well win the day, but brand awareness of Airbnb now permeates the net. It’s an expensive hobby for sure and Expedia, Trip, BCOM etc are all in the space.
Independent owners can maximise the opportunity without extra fees but need to be 24/7 and perhaps instantly bookable.
If Airbnb can lay the “Golden Pricing Egg” in the future, then expect a rush toward more integration. What is this special egg? We will explain more shortly as to why this barrier holds back and frustrates the industry and needs fresh thought.
Come back to see a complete analysis of the businesses and what more this will mean to you, but expect to see more marketing spend on attracting new clients to appointed PMS’s and promises of a brighter booking future.