AIRBNB has officially checked into hotels as it makes it move into the market with experts saying “this shift feels inevitable”.
Airbnb has made two key moves to build out its hotel business: elevating a former hotel executive and hiring a Booking.com veteran.
Airbnb’s global head of real estate, Jesse Stein, is taking on the newly created role of head of hotels, while continuing in his current post.
Lou Zameryka was also hired this month as global head of hotel enterprise and connectivity partnerships.
The company will be attempting to take on the sheer scale and muscle of Booking.com, Expedia and Trip.com.
Experts said that the move would have been unthinkable back when it was the poster child for spare rooms, local hosts and living like a local.
It feels like inevitability
Kate Allen, Owner at Kingsbridge-based Finest Stays, said the move risks diluting the unique selling point (USP) of Airbnb.
She added: “Commercially, the pressure is obvious. The scale of Booking.com, Expedia and Trip.com would make any CEO twitchy. Brian Chesky needs growth, and at this level that usually means more inventory; even if it chips away at what once made Airbnb special.
“The move seriously muddies Airbnb’s brand. Its USP was always homes, hosts and a genuine sense of place. But this shift feels inevitable.
“For independent, local agents like us, this actually strengthens our position. Guests who book with us get better value, clearer pricing and hands-on service. We know the homes and the owners, and if something goes wrong, we don’t hide behind a help centre, we fix it.”
Beccy Dickson, Co-Founder at Branded Biophilia, said she was surprised that Airbnb was going in this direction.
She continued: “This doesn’t feel like innovation. It feels like inevitability. When Airbnb started, it wasn’t about scale. It was about ‘feel’ – homes, texture, arriving somewhere that let you settle rather than perform.
“Hotels were never the issue. Sameness was. So would I book a hotel on Airbnb over Booking.com, Expedia or Trip.com? Honestly, no. If I want a hotel, I’ll use a platform built for hotels. If I want a home, I want atmosphere, not inventory.
“The bigger question is the USP. Once you sell both homes and hotels, the signal blurs. In trying to be everything to everyone, Airbnb risks becoming efficient but emotionally flat. And right now, flat is exactly what people are trying to get away from.”
Diversifying your offering is key
Laura Purkess, Personal Finance Expert at Investing Insiders, said she understands why Airbnb is broadening its scope.
She added: “Having a really unique USP is something that sounds nice on paper, but in the current economic climate isn’t very sustainable. In a competitive market like tourism, diversifying your offering is key, and Airbnb has clearly realised that there will always be a high demand for hotel rooms over self-catering accommodation and cheap rooms in people’s houses – and there’s potentially more money to be made there too.
“There’s also the issue of scale and that supply needs to meet demand – Airbnb relies on there being enough hosts to meet accommodation demands. If there aren’t, there’s not much room to scale within the parameters Airbnb has given itself under the private hosting model.
“By broadening out to hotels, Airbnb is opening up a huge new pool of accommodation it can advertise through its platform. Of course, by doing this Airbnb runs the risk of losing its identity and becoming just another Booking.com-type website, but it may be that’s what it takes to survive.”
