There are some strong lessons hotel owners can learn from Airbnb, including learning how to play up your strengths.
The Airbnb vs. hotel debate rages between peer-to-peer renters and franchise lodgings. Where to stay is often a difficult choice for vacationers, influencing how the hospitality industry competes for their attention. The Airbnb vs. hotel conversation doesn’t need to be a threat to you or your business. While Airbnb and similar by-owner vacation rentals continue to grow in popularity, the hotel industry can still thrive in the market.
Airbnb is not the only private vacation rental out there. Hotels compete with Vrbo, Vacasa, HipCamp, and other home-sharing and short-term rental properties. Airbnb hosts and others like them can rent an entire house or private rooms to guests. While this is an appealing option for some, it’s not without drawbacks. Hotels offer greater reliability, benefits, and amenities that vacation rentals can’t match.
5 Areas Where Hotels Are Winning the Airbnb vs. Hotel Debate
While the charm and homey feel of an Airbnb appeals to some travelers, there are many areas where hotels offer more than homeowners could. Despite the elevated competition, the hotel experience is still as remarkable as it always has been. If you want to keep attracting guests, focus on these five areas where hotels excel at maintaining satisfied travelers.
1. Excellent Customer Service
The hotel vs. Airbnb score isn’t even close when it comes to quality customer care and service. Hotels far surpass Airbnb rentals in this area simply because they’re a professional business run by experts in the hospitality industry. Hotels are built on customer experience, and they continue to shine.
When guests check in at a hotel, they’re welcomed by friendly, local people. They’re given keys, a clean private room, and information about the surrounding area. Assistance is just a phone call away if any issues arise during their hotel stay. With an Airbnb, customers are rolling the dice. If the hot water stops working in the shower or they need an extra pillow, the owner may be unavailable.
Hotel owners can keep winning at the customer service game by focusing on enhancing the traditional hotel experience for their patrons. Cleanliness is the rule in the industry, but excellent front desk assistance, professional services, and amenities can make a big difference. Keep up with trends in amenities and offerings. Focus on providing extra-friendly customer service to ensure customers feel they have made the better choice.
Keep your social media presence strong with plenty of photos and information for potential guests. Respond to customer concerns (and complaints too). Provide excellent service to customers calling to reserve a room or gather additional information as they plan their stay. Ensure that visitors see a friendly face from the moment they walk into the hotel to the time they check out (and 24-hour check-in is appealing, too). You can train staff on the importance of going the extra mile to accommodate requests and provide the welcoming hotel experience that visitors seek. Little touches can make all the difference when it comes to keeping hotels on top.
2. Established Reputations
Unlike Airbnb, hotels have a well-established reputation. Within the hospitality industry are several top hotel franchises with which many people already have a strong relationship and trust. Familiar names like Hyatt, Marriot, Four Seasons, Double Tree, Ritz Carlton, and more are all synonymous with successful businesses that pride themselves on caring for others. Thanks to established hotel chains like these, the industry continues to grow despite the ever-popular discussion of Airbnb vs. hotel.
The United States hotel industry’s total revenue for 2023 was over 231 billion dollars. Although options like Airbnb have changed the face of the industry, hotels that keep up their reputations continue to thrive.
Smaller hotels may not be part of a group like Hyatt, Marriot, or Hilton, but they can still focus on their reputation to attract guests. Join your local Chamber of Commerce, participate in and support area events, and keep the name of your boutique hotel in front of the public. Consider offering loyalty programs and discounted additional services for first-time renters.
Similarly, whether you’re running a hotel, motel, resort, or traditional bed and breakfast, pay attention to reviews. When customers write about their experience online, engage with them. If there’s an issue, don’t hesitate to resolve it quickly and ensure their satisfaction (and return stay).
Read the reviews of your establishment online and address concerns right away. A bad review isn’t the end of the world, but shouldn’t be ignored. When the industry is this competitive, one person’s bad experience can seriously damage your business.
When your guests prepare to confirm a reservation for a last-minute vacation in a foreign location, hotels serve as a home away from home. Guests are seeking a spot with a reputation they can rely on. Years of hard work and long-established track records in the hospitality industry set hotels up for success. When weighing Airbnb vs. hotels, hotels win on reputation.
3. Safety and Security
Safety is a big area where hotels win over Airbnb properties. Businesses can offer more security and safety than any homeowner can. While Airbnb takes steps to screen their vacation rental owners, the fact of the matter is hotels have the upper hand.
Only hotels have the resources and advanced technology in place to protect their patrons. Hotel safety and security measures are of higher caliber because of the experienced staff. Safety is a top focus and concern for any accommodation, whether it’s motels, bed and breakfasts, or tropical resorts. Although some guests may find themselves swayed by Airbnb’s personal preference options or competitive price points, top-notch security will win at the end of the day. The level of safety in an Airbnb is hit or miss, and in recent years, there have been a number of reports of hidden cameras in private rooms. Most guests won’t choose to gamble on safety.
Continue to implement and enhance your security measures—and make guests aware of the protective steps you’ve put in place. There may be a tendency to downplay security and safety, but today’s guests view it as a strength.
Add security protocols to protect a guest’s digital information as well. Free Wi-Fi is great, but measures should be taken to protect guest information. Always ensure your payment systems are secure and up to date. Online reservations should be entirely secure to safeguard guests’ financial information and private contact details.
4. On-Site Dining
The only other part about vacationing travelers appreciate more than quality hotel room amenities is good food! While Airbnb offers local restaurants to grab a quick bite, nothing beats the unique hotel dining experience.
Part of what makes a vacation so much fun is the opportunity for guests to relax and live luxuriously for a short amount of time. On-site dining establishments continue to increase in popularity as world-renowned chefs partner with hotels to offer guests a one-of-a-kind, sophisticated dining experience unlike anything an Airbnb could offer.
Henry Harteveldt, Principal at Atmosphere Research Group (a company whose advisors analyze the travel industry), discussed the minds of adventurers today and stated, “When we travel, we want unique and authentic experiences.” Guests don’t want to eat at places they can get when they’re home; they want the special experience at an establishment they’ve never been to before.
Consider leveraging your dining room’s own food options for guests through targeted social media to get customers through the door. The competition between Airbnb and hotels here is nonexistent; hotels are the only type of business that can offer this type of stellar, on-site dining experience to their guests.
5. Perks and Rewards
Comparing the perks, rewards, and benefits of staying at an Airbnb vs. hotel is a no-brainer. Hotels offer more incentives for guests who book with them as opposed to vacation rentals. Many hotels offer guests unique opportunities to join loyalty programs, exclusive rewards clubs, and special programs. From family-friendly hotels to romantic getaway destinations, hotels provide their version of a rewards system for patrons staying with them.
Perks and rewards serve as motivation for guests to continue booking with hotels. When deciding between an Airbnb vs. hotel, patrons know the points they earn through their stay at the Marriot could get them a free night on their next vacation, or they’re aware their week-long reservation at the Hyatt could significantly increase airline miles. Whatever the incentive, hotels excel in offering perks and rewards for their loyal members.
Vacation rentals don’t offer the same opportunities for racking up points, and there are no rewards for choosing a specific host more than once. When traveling, guests want to feel appreciated and special. Personalized reward programs help patrons feel valued for their repeat business and are yet another way hotels succeed at connecting with guests and predicting their needs.
For the hotel industry, promoting your perks, rewards, and corporate partnerships can boost your business. Make sure travelers know about the incentives to book with your hotel. Share your options on your website, via social media, and through advertising partners whenever possible. When considering an Airbnb vs. hotel, guests will ultimately choose the option that benefits them more.
The hospitality industry continues to adapt, and hotels adjust as more modern housing options pop up. With the rise of Airbnb and other vacation rental websites, implementing positive changes and embracing unique qualities are just a couple of ways hotels maintain their positive reputations.
Travelers today have many options when it comes to lodging. Airbnbs appeal to people because of the homey atmosphere and variety of choices, but there’s no reason for hotel owners to get discouraged. Focus on the strengths of your business, promote and play them up. Hotels offer a unique hospitality experience that vacation rentals can’t beat.
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