I hate to be the bearer of bad news to my fellow hoteliers.
As a Hall of Fame award winning luxury hotel manager in Bali for the past 14 years I am sad to say that AIRBNB is getting even more competitive, which will take business away from hotels.
One of the biggest draws for hotel websites and online websites such as booking.com has been that that guests could pay little or no money upfront and therefore avoid any severe cancellation clauses.
Guests who are not quite sure about their vacations may have opted for hotel and on line booking services in the past to avoid losing all or part of their deposit should they change their travel plans.
Now AIRBNB is allowing a 50% deposit which will make it even more attractive for guests than even.
We as a industry are certainly going to have to do something to compete against this.
Perhaps it's time for the huge hotel industry around the world to spend some money to level the playing field with AIRBNB.
It's near impossible for hotels to compete with AIRBNB and the hosts who do not have to adhere to a very strict regulations such as cleanliness etc. Who often do not have a buisness licence and therefore do not have to pay their staff mininum wages , which just increased 24 % in Canada. Often they do not pay all or any of their taxes
AIRBNB hosts do not have to hire union workers to repair things such as air conditioning, refrigerators, heating etc..
Surely if AIRBNB had to pay the same compensation packages to their staff that hotels around the world had to pay than their prices would have to increase.
If the hotel business is not careful AIRBNB will take over the hotel business the same way that Uber took over the taxi business. Both using an uneven playing field.
The only good thing I can see coming out of this adversity is that now AIRBNB hosts will discover that when guests only have to pay 50% they will cancel sometimes without even notice.
Therefore I predict that AIRBNB hosts will have much higher cancellations with this new AIRBNB policy of a 50% deposit.
By TTG Asia
/ Posted on 25 January, 2018 10:00
Airbnb is introducing Pay Less Up Front, which allows guests to pay only for part of the trip at the time of booking – a 50 per cent deposit in most cases – and pay the rest closer to the check-in date.
This is a departure from before, where guests had to pay in full when booking.Airbnb users no longer have to pay the full amount at the point of booking
In the testing of the new scheme, Airbnb said it saw “clear demand” for more convenient payments. Given the option of paying less up front, 40 per cent of guests chose to do so, and opted for higher-value bookings on the whole.
The company also found that Pay Less Up Front encourages bookings further in advance. Compared with ordinary bookings, the new payment option led to bookings with nearly double the lead time, helping hosts to secure and manage bookings more easily.
The new payment option is available today across all platforms: iOS, Android, mobile-web and desktop.
To qualify for Pay Less Up Front, the total stay must be US$250 or more, and be booked at least 14 days from check-in.