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By Ron Lee
Published: 02/25/23 Topics: Advertising, AirBnB, Booking.com, Expedia, Online Travel Channels (OTCs), TripAdvisor, Vacation Rental Association, Vacation Rentals, VRBO.com Comments: 0
AirBnB's quest to make every home in the world into a "shared' living space shows their appetite for growth and profitability even at the expense of those they serve.
AirBnB and others are really nothing more than an easily distributed list of classified ads. Albeit with the ability to print more quickly, include more information, display pretty pictures and allow consumers to instantly buy the product.
Because the Internet has simply remove the burden of mechanically compiling, editing and printing a media, like many Internet businesses in most industries, companies like AirBnB entice investors that they can "Scale" without limitation.
Other than governmental intervention, there really is no obstruction to listing every space, everywhere in the world all at once. (My apologies to the movie of similar name)
A close look at comments made by AirBnB's immature CEO Brian Chesky reveal a fatal flaw in the company's vision. As the economy has stalled and consumers are traveling less, which means a flattening or downturn in travel expenditures in total.
Some vacation home owners are squealing about dropping rental income which can be directly attributed to negative economic news. These investors are the ones who jumped on the AirBnB gravy train that was running fast and furious during Covid.
But now that demand is lower, what dose the CEO do? He runs a campaign to entice far more people to put their homes into rental. He foists grandiose projects about AirBnB's income which misleads home owners into thinking they will follow in his footsteps.
It seems as if AirBnB will list any kind of "Lodging" in any kind of area and do so willingly. AirBnB's argument must be that they have become so much the "Darling" of the lodging industry that they can attract enough new guests to fill every property.
Unfortunately that has never been the case. Smart lodging managers have always used all other possible media - such as VRBO, Expedia, Booking.com, TripAdvisor and many more. But even with heavy use of all possible advertising websites, supply can outstrip demand.
Chesky's ploy will hurt existing AirBnB properties and short-change those he misleads into listing. But why should he care? The more inventory he gets the better for AirBnB, even if all the "Vendors" make less.
Author: Ron Lee – Volunteer, Vacation Rental Association
Blog #: 0948 – 02/25/23
Sponsor: VRAI – Inside information from a reliable not-for-profit group. Speak your mind. Listen with open ears. For Vacation Rental Professionals – VacationRentalAssociation.com
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