Will Airbnb leave hotel owners out of business?

Dec 5, 2019 | General, Latest News

Airbnb – offers more than 3 million units, has a large number of affordable “rooms”, serves more than 200 million travelers in more than 65 thousand cities around the world.

Sometimes you can hear the opinion that such services can undermine the entire hotel industry! But the director general of the largest Marriott hotel chain Arne Sorenson proved the opposite – in the seven years that he has occupied this chair, the company has risen in price by more than 200%.

InAsia Consulting - Air BnB Article
The deal with Starwood (high-end chains such as The W, The St. Regis and Le Meridien), which cost the company $13.6 billion, allowed the company to overtake Hyatt (69% growth) and Hilton (117% growth after the 2013 IPO), and defeating the S&P 500 index (an increase of 113%).

Also, the Marriott Bonvoy loyalty program, which rewards bonuses for staying in one of the thirty Marriott chains, was one of the most attractive ideas. Cashback from 6-7%!

Marriott’s revenue in 2018 exceeded $ 20 billion, an increase of 62% over five years.

“Is this the death of hotels?” Sorenson asks, the corners of his mouth curving into a smile. – I do not think so”.

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