Airbnb Is Expanding Into Hotels - What Does This Mean for Hosts?

Airbnb is changing, and its latest plans could have a real impact on hosts and small accommodation businesses.

The company is moving beyond its traditional holiday-let model and expanding further into hotels, experiences and travel services. Airbnb wants to become a bigger part of the overall travel experience, rather than simply somewhere people go to book accommodation.

For hosts, it's worth paying attention.

Airbnb is becoming more competitive

One of the most significant developments is Airbnb's push into boutique and independent hotels.

This means the competitive landscape on Airbnb is changing. Hosts who previously competed mainly against other holiday lets are increasingly sharing the platform with professionally operated accommodation businesses.

And that matters because Airbnb is becoming a much larger marketplace. More choice for travellers means more competition for visibility, bookings and attention.

That doesn't mean Airbnb is bad news for hosts. For many properties, it will remain an important source of bookings and a valuable way to reach new customers.

But it does highlight an important question that I think every host should be asking: How dependent do I want my business to be on OTAs?

But this doesn't mean you should leave Airbnb

I'm not suggesting hosts delete their Airbnb listings.

An OTA such as Airbnb can be an incredibly valuable customer-acquisition channel. It can put your property in front of people who may never have discovered you otherwise.

The issue is what happens when all of your bookings depend on one platform.

Airbnb controls the marketplace, the customer journey and the relationship with the guest. Its policies, fees, algorithms and priorities can also change. That's why hosts need to start looking beyond simply getting more bookings through Airbnb.

Why direct bookings matter

Imagine a guest stays at your property and has a brilliant experience. They love the accommodation. They love the location. They leave a five-star review. Naturally, you'd hope they'll come back.

But if they booked through Airbnb, the next time they want to visit, they will open Airbnb again and find themselves looking at other properties competing for their attention.

With a direct-booking strategy, you have the opportunity to build that relationship yourself. Your website, email list, social media and repeat-guest marketing all become important.

No OTA search results. No competing properties. No distractions.

And that's where my OTA Exit Strategy comes in.

What is the OTA Exit Strategy?

It doesn't mean switching off Airbnb tomorrow. It's about gradually reducing your reliance on OTAs by building your own marketing channels.

It's about gradually building the assets that you own.

• Your website

• Your brand

• Your social media audience

• Your email database

• Your repeat guests

• Your direct booking system

The aim is simple: use OTAs to help you acquire guests while building the marketing infrastructure that allows you to generate more bookings independently.

Think of it as:

OTA → first booking → great experience → relationship → repeat booking → direct

That's a very different business model from relying on an OTA to generate every reservation. Over time, the goal is to build a healthier mix of bookings rather than relying almost entirely on Airbnb, Booking.com or another OTA.

Your future guests are already out there

One of the biggest opportunities for hosts is to stop marketing only the property and start marketing the destination and the experience. Airbnb is moving in this direction itself, with services and experiences becoming a bigger part of its offering.

Hosts can do exactly the same thing. Create content around what guests can do, where they can eat, what's happening locally and why they should visit, then position your property as the perfect base.

The takeaway for hosts

Airbnb becoming bigger doesn't necessarily mean hosts should become more dependent on it. It could mean the opposite.

Use Airbnb for discovery and acquisition. But build your own audience, your own brand and your own direct-booking channel alongside it. Because the ultimate goal isn't to exit Airbnb. It's to make sure Airbnb isn't the only way guests can find you.

That's the thinking behind the OTA Exit Strategy. Want to reduce your reliance on OTAs and build more direct bookings? Get in touch to find out more about the OTA Exit Strategy.