World Panel
Viewpoint27 November 2020

How big of a threat to the hospitality industry is Airbnb’s upcoming IPO?

Digital Marketing in Hospitality

— 10 experts shared their view

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This viewpoint was created by
Max Starkov, Adjunct Professor NYU Tisch Center for Hospitality and Hospitality & Online Travel Tech Consultant
Erik Muñozsupplier view
Chief Commercial Officer (CCO) at Lybra.tech

A successful IPO will place Airbnb in a much stronger financial position so they can remove the high cost (at 11% interest) of their recent funding and prepare to operate profitably again.  The threat of Airbnb will be felt by hotels that are perceived to be "risky" in terms of Covid-19 transmission prevention, eg. large hotels with busy public areas.  Without going into detail on the benefits of Airbnb accommodation vs a hotel, motel or resort - the pandemic has created awareness in the public of social distancing and remaining within a "social bubble" - which plays really well into the majority of Airbnb accommodation offerings (being a private residence, no lobby or elevator packed full of strangers).  I believe Airbnb are a threat to many average hotel operators, even without funding from an IPO.  A solid Airbnb just means they are here for the long haul and will likely have a detrimental impact on a section of the hotel market.  Smart hotel operators offering consistent and predictable high levels of service will not be impacted too negatively by Airbnb, IMHO.

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