Airbnb acquires HotelTonight

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Airbnb makes its biggest acquisition yet as it moves to increase hotel listings on its site. The company has agreed to buy HotelTonight, a provider of last-minute, boutique options for a night’s stay. It does so ahead of an eventual initial public offering. Airbnb hasn’t disclosed the financial terms of the deal, but according to a person “familiar with the matter” said its price is close to HotelTonight’s last private valuation, which is at US$463 million. Airbnb’s last big purchase was Luxury Retreats, which it bought for $300 million.

The move has Airbnb encroaching further into the hotel industry and puts them into the position of being what Bloomberg calls the Amazon for travel or a “one-stop-shop for holiday-goers.” HotelTonight’s app and site will continue to operate independently of Airbnb. But the company might integrate its listings on its site in the future. And once the acquisition is complete, HotelTonight’s founder will report to Airbnb’s President of Homes, Greg Greeley.

Airbnb to offer more experiences in 2018 as it expands to 1,000 cities

We reported earlier that Airbnb was expanding its offerings for a wealthier clientele. But that wasn’t all the company is working on. Airbnb also announced it plans to expand its “experiences” feature to 1,000 cities. The feature was launched a little over a year ago to offer its travelers unique, local activities they might want to try out. Some of the new places to get experiences include Iceland, Easter Island, and Tasmania.

The move to introduce experiences was a wise one especially when it faced regulation issues in some cities as well as continued competition from hotels and others that work in the travel industry. It helps supplant the revenue of the company, while drawing in more users that want more out of their trips. Some of the experiences the company offers range from those with a “social impact” to meeting others for a meal to activities for thrill-seekers, among many others. "The options are endless," said Joe Zadeh, Airbnb's vice president of trips. "We are working with our hosts where anyone can build an experience around their passion."  

Source: CNET

Airbnb moves to attract wealthier travelers with new offerings

Airbnb is both welcoming hotels into its platform at the same time introducing a new service that will provide its customers with hotel-like amenities. The latter is being called Airbnb Plus, which provides higher-end accommodations that have been “verified for quality” by the service. As explained on Airbnb’s site, “Every Airbnb Plus home is one-of-a-kind, thoughtfully designed, and equipped with a standard set of amenities—whether you’re in a private room or have the entire place to yourself. All Airbnb Plus homes are visited in person to ensure comfort, consistency, and design. They are checked for 100-plus things that guests told us they love, from must-have amenities to the art on the walls.” These hosts will also need to have a 4.8 out of 5-star rating or higher to qualify.

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Airbnb to expand the experience element of Trips to 200 U.S. cities

Seems like Airbnb’s expansion beyond providing alternative short-term rentals is paying off. Airbnb launched Trips a little over a year ago with the objective of offering unique experiences while their travelers are visiting certain areas. The company is investing US$5 million to expand this part of the business for 200 cities in the US. There are currently 4,000 experiences being offered globally with 1,000 of them being offered in the US. Airbnb describes Trips as helping “small business owners, new entrepreneurs, and community non-profits to create immersive experiences for travelers.”

It seems growing beyond offering rentals has helped the company. According to Airbnb, global weekly guest bookings have risen by more than 2,000 percent year-on-year, while the number of experiences offered has increased by 500 percent.

Source: Digital Trends