Airbnb has a new, old plan to eat into hotel business
Airbnb will promote private rooms more, with its CEO highlighting lower prices relative to hotels
Airbnb Inc. Chief Executive Brian Chesky knows that accommodations on his platform have gotten "expensive," and he's hoping the company can get back to its roots more.
The company got its start as a way to make travel cheaper: Instead of booking hotel rooms, consumers could rent out space in others' homes and save money. But Airbnb (ABNB) has since expanded into more elaborate rentals, and nowadays its value proposition versus hotels isn't always there.
Chesky admitted at a Tuesday media presentation that the company has been fielding complaints about the costs of its lodging. He hasn't been particularly shy in the past either about acknowledging that prices have gotten out of hand or saying that the company was looking for ways to make stays more affordable.
Part of Airbnb's strategy doesn't involve actually lowering prices, but rather giving more play to options deemed to represent good value, namely the ability to book a private room in someone's home. The CEO said he thinks his company's accommodations offer compelling advantages to hotels, and part of Airbnb's plan going forward will be to emphasize its original business more.
