A group of travel buyers have expressed concern about the increased interest from travellers in the use of shared economy providers such as Airbnb.
Speaking at a BBT Editor’s Lunch, partnered with SACO The Serviced Apartment Company, buyers representing a wide range of businesses discussed future trends in accommodation.
One of the main talking points was around Airbnb and the safety and duty of care issues that comes with it. One buyer said: “Company culture is essential to my employers, so if it costs more to put travellers in a safe environment then so be it. We will not touch Airbnb on those safety issues alone.”
One buyer said they decided to look at shared economy providers and offer Airbnb after many requests from travellers especially among their millennial employees.
“We went down the route of Airbnb because they offered more flexibility, so it’s refreshing to hear that serviced apartment providers such as Saco can be flexible with things such as length of stay, cost and location.”
The event was introduced by BBT editor Paul Revel who said the topic chosen for the event was timely as there are plenty of changes happening at the moment in the accommodation sector.
“The rise of ‘sharing economy’ providers such as Airbnb are causing concern with buyers and sellers, but we are starting to see serviced apartment providers putting inventory on Airbnb,” said Revel.
One buyer wants Airbnb to address the safety concerns of businesses. “They need to be more female friendly. In certain locations there are long dark corridors, private entrances and some rooms in shared houses don’t have locks on the doors.”
Jo Redman marketing director at Saco said: “We welcome Airbnb’s growth in the market, it’s been useful as it has shone a spotlight on staying in an apartment in the city centre. We are not in the market of putting it down.”
Ben Harper sales director at Saco said what sets Airbnb apart especially among young travellers is the strength of the brand.
“Airbnb has a monstrous brand and what we don’t have in the serviced apartment industry is brand recognition. I would love people to say ‘Saco is cool’."
Airbnb’s growth as an online-only business is reflected by Saco’s own figures which saw year-on-year online sales grow 38 per cent in the six months ending June 30 compared to the same period a year earlier.
The serviced apartment provider also reported total revenue growth of 14 per cent for the six month period and GDS bookings from TMCs up 20 per cent year-on-year. There was also a significant jump of 83 per cent in its relocation market segment.
Saco’s Harper said: “Our industry dashboard shows a good level of buoyancy in the corporate market during the first half of 2015.
“The key trend that we’re seeing so far this year is a big jump in the relocation business. This along with increased GDS adoption and more TMC partnerships means we are achieving a healthy mix of mid to long and transient stays. On top of this, our focus on wider channel distribution and direct sales through the new website means we are able to push for an increased share of the wider leisure and hospitality mix.”
The editor’s lunch with SACO took place September 24 at the exclusive Royal Automobile Club in central London.
The next one with car rental firm Avis will be held on December 2. To register your interest please email events@panaceapublishing.com with your name, job title and company name.