Airbnb used to be seen as a direct competitor to hotels — but the lines between the two are increasingly becoming blurred.
What's new: Not only did Airbnb recently acquire HotelTonight, which is a last-minute hotel booking company, but it’s getting into the business of operating hotels itself.
Why it matters: Airbnb has long presented itself as an alternative to hotels, promoting the idea of experiencing a destination “like a local” by staying in a host’s home.
Yes, but: Airbnb has long allowed professionally managed vacation rentals in certain locations onto its marketplace, so it has not been entirely hostile to professional accommodations.
Now, with its acquisition of HotelTonight, investment into Lyric, and deal with RXR Realty, it’s fully embracing hotels.
Our thought bubble: This could be a smart move as Airbnb inches closer to going public, when it will need to show investors a diversified revenue stream.
