Airbnb’s accommodation consists of privately owned rental spaces run by Airbnb hosts. Credit: Boumen Japet via Shutterstock.

With a busy travel season in sight in the summer of 2023, Airbnb is grappling with a paradox that might prove critical to its long-term success: offering an affordable alternative to travellers while remaining viable for hosts.

Airbnb, once a platform that allowed individuals to earn extra income by renting out spare rooms, has grown into a $67 billion behemoth. But now, as the company prepares for the upcoming travel season, it aims to return to its initial purpose.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Affordability for travellers and viability for hosts are two crucial factors that the service must balance in order to maintain its competitive edge in the hospitality industry.

While hotels have long been the go-to option for travellers, Airbnb’s unique offering of flexible accommodation and localised experiences has gained popularity over the years.

Striving to combine Airbnb’s affordability with growth

Airbnb’s success has been driven by its ability to provide cost-effective accommodation, often at lower prices than traditional hotels.

However, as the company has grown, it has faced increasing pressure to expand its offerings, which could potentially result in higher prices.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Striving to strike a balance between affordability and diversification, Airbnb is now focusing on expanding its service offerings without compromising its core value of providing affordable options for travellers.

Navigating the challenges of host viability

While Airbnb aims to cater to the needs of travellers, it must also ensure that its hosts find the platform viable for their business. Over the years, some hosts have voiced concerns about rising fees, increased competition and regulatory challenges in certain jurisdictions.

Airbnb recognises the importance of maintaining a healthy ecosystem of hosts and is actively working to address these concerns. The company has implemented initiatives such as host support programs, improved communication channels and enhanced host protections to foster a mutually beneficial relationship.

As the summer 2023 travel season approaches, Airbnb finds itself in a unique position, aiming to strike a delicate balance between affordability for travellers and viability for hosts.

By returning to its roots and emphasising its commitment to offering cost-effective accommodation while also expanding its services and addressing host concerns, Airbnb hopes to continue its growth trajectory and stay ahead in the competitive landscape of the hospitality industry.