Airbnb seeks to compete with Expedia and Booking.com

Airbnb is changing its fee structure for hosts to try to encourage more hotels onto the platform as it seeks to compete with Expedia and Booking.com. The hosting platform, which launched in 2008 for those with spare rooms or homes to rent them to guests, will introduce a new fee structure for professional hospitality businesses listing with them after June 4 that eliminates any fee being passed on to guests. Instead of its usual set-up where hosts pay a 3 per cent fee and guests up to 20 per cent of the nightly charge, independent hotels and hospitality companies will pay a “host-only” fee of 14 to 20 per cent with no charge going to the guest. The change comes as Airbnb positions itself as an end-to-end travel provider, selling services such as flights and car bookings via third party providers as well as experiences, ahead of a rumoured initial public offering. At its most recent fundraising round in 2017, Airbnb was valued at $31 billion… In March, the company said it had agreed to buy hotel booking site Hotel-Tonight for an undisclosed sum. A month later, it invested $100 million in the fast-growing Indian hotel start up, Oyo. Having a dual-fee structure is seen by many asan attempt to compete with Booking.com and other online travel providers, which do not charge fees to consumers. 
 
Alice Hancock

Food4Brains

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