Financial Times · Stephanie Stacey ·

Airbnb launches a pilot in NYC, LA, and other cities that lets users to select from a range of boutique hotels alongside private homes in a bid to boost growth

Company expands accommodation options alongside home rentals but analysts warn of stiff competition

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Airbnb launches a pilot in NYC, LA, and other cities that lets users to select from a range of boutique hotels alongside private homes in a bid to boost growth

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Apr 18Apr 20

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Airbnb Now Wants to Sell You Hotel Rooms Too

Airbnb is piloting boutique hotel listings in NYC, LA, and other cities as it hunts for new growth.

Airbnb is stepping onto hotel turf. The home-rental giant just launched a pilot program letting users browse and book boutique hotels alongside the usual private home listings.

The pilot is live in New York City, Los Angeles, and several other cities. It's a clear play to expand accommodation options and juice growth beyond its core home-sharing business.

But analysts aren't handing out easy wins. The move puts Airbnb in direct competition with entrenched hotel booking platforms — think Booking.com and Expedia — that have dominated the hotel distribution game for years. Stiff competition awaits.

For Airbnb, the bet is straightforward: more inventory types mean more bookings. Whether travelers actually want to book a hotel through Airbnb instead of dedicated platforms is the billion-dollar question the pilot aims to answer.