Hoteliers in the region are not concerned about the threat of Airbnb disrupting the hotel market, with many agreeing that Airbnb will simply ‘diversify’ the market.
Omar Kaddouri, CEO, Rotana Hotels said: “Guests that are looking for holiday homes and Airbnb are certainly not looking to stay in hotels. These will always be alternatives but will not cause disruption whatsoever.
Mark Lee, general manager of Media One Hotel in Dubai, agreed that the “it is unlikely” the emergence of Airbnb will disrupt the hotel industry.
In a research note published by Barclays recently, Barclays European leisure analyst Vicki Stern pointed out that the number of rooms available on the room-sharing platform has already hit 1 million. This is more than the 687,000 rooms offered by IHG, the largest hotel company measured by rooms.
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According to a report by Business Travel News, Stern’s note said Airbnb's current bookings are about 37 million room-nights per year, or a fifth of what IHG sold in 2014. However, its rate of growth means it could top IHG’s numbers within two or three years.
Mark Willis, area vice president Middle East and Sub-Saharan Africa, The Rezidor Hotel Group however, believes that Airbnb will compensate for a shortage in supply for Dubai’s Expo 2020.
DTCM expects to have to double Dubai’s hotel inventory to around 164,000 hotel and hotel apartment rooms by 2020 to cater to 25 million visitors between October 2020 and April 2021.
“The realisation that the forecasted supply will probably not be sufficient to cater to the demand as we get closer to Expo 2020 has meant that options such as holiday homes and central rental options are inevitable,” said Willis.
Alex Kyriakidis, president Middle East & Africa, Marriott International however, sees the emergence of Airbnb in the GCC as a positive development.
“New players to the industry such as Airbnb have diversified rather than disrupted the industry and in my opinion have brought a different type of traveller to our region and these visitors still want to eat and socialise outside of their holiday home or B&B and experience the region beyond their accommodation.
Laurent Voivenel, CEO of Hospitality Management Holdings agreed, adding: “The emergence of Airbnb will modify and diversify the market share.”
Gaurav Sinha founder & CEO of Insignia and vice-chairman of The Travel Attaché believes that “the sharing economy” is here to stay, and that it will “create new business”.
“We will continue to see the evolution of sharing and crowd-sourced business models. UBËR, AirBnB, ZEEL and other proven brands will see new entrants who will disrupt convention.
“Don’t be surprised to see therapists turn into spa brands, peer-to-peer dining experiences challenge celebrity chefs and holiday homes that offer ‘connected’ social experiences compete with hotels.”
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