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Another big factor in Airbnb, like other "platforms" like this vs their traditional counterparts, they have no assets that incurr costs no matter how down the m
by syshum 6y ago
Another big factor in Airbnb, like other "platforms" like this vs their traditional counterparts, they have no assets that incurr costs no matter how down the market it
Hilton, Marriott, etc all still have MASSIVE amounts of physical property that they have to maintain year around no matter if they are full or empty. Airbnb has none of those costs.
This makes them more flexible and are able to quickly respond to changes in the travel market, more so than their traditional competitors
- admax88q 6y agoMarriott doesn't own their hotels, they lease them from third party owners. I would wager that Hilton is doing the same.
- syshum 6y agoI dont know about the Marriott family of brands specifically but I would image like most large companies in this sector they have a Mix of Franchisees and Direct owned properties. Hilton Certainly does under several of its brands. This Franchise model does not change my statement really at all, as it is far different model than what airbnb has
- namdnay 6y agoDo they lease them? I got the impression that it’s closer to a franchise model (for all major chains)
- heavenlyblue 6y agoDoes leasing change the fact that you still need to maintain the property and pay the lease?
- janitor_monkey 6y agoActually Marriott works with a franchise model. If the franchisee goes bankrupt, that's a problem for Marriott... but it is also a problem for Airbnb (many owners of several properties are going bankrupt). As an anecdote, I had an Airbnb stay in Rome but the landlord went bankrupt due to Covid and had to close the business.
- asdff 6y agoDepending on the city some hotels aren't doing as poorly as you might expect. LA has been running project roomkey during this pandemic, where they basically pay for a hotel or motel room for homeless people.