With the recent growth of Booking.com far above the growth of the industry and commissions at a record-high level, the hotel industry is becoming concerned that the online travel agency will capture an ever-increasing share of the overall profit margin.
Digital disruption has had a huge impact on the hospitality industry. Companies like Airbnb and Priceline have done a great job of creating digital platforms and applying pressure to traditional hotels, but hotels are fighting back with consolidation and differentiation.
“Hospitality must evolve towards more flexibility and be able to open the gates to non-travelers for a drink, a yoga course, a fitness room, etc. In other ways, we are targeting non-travelers by bringing hospitality outside the hotel. Through strategic partnerships, we are now offering our hospitality expertise in new playing fields, for example, such as co-working places.” Sebastien Bazin Accor Hotels CEO
Airbnb has cleverly built a platform to create trust among complete strangers.