A qualitative market research report that focuses on the lodging competition between Airbnb and hotels. This report provides consumer insights around why travelers prefer one over another and why, and their expectations of each.

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BRAND WARSAIRBNB + HOTELS
JUNE 2016

2. WHAT’S THE BIG DEAL?
Pew released a study on the sharing economy in the spring of 2016 in which they
found only 11% of adults have used home-sharing platforms like Airbnb.1
Although
usage is relatively low, it’s gaining momentum. Consider the fact that 9 years ago,
Airbnb’s only rental property was three air mattresses on the founders’ floor.2
Today,
Airbnb is in 34,000 cities in 191 countries and valued at $25 billion.3
Still not convinced it’s worth our attention? US Census Bureau data shows that
America’s 33.6 million unused bedrooms are worth $174.9 billion.4
Last year alone,
it’s estimated that Airbnb claimed almost $1 billion in disruption revenue.5
Airbnb has
the potential to change both the tourism and housing industries in a major way.
With that, we wondered – who is staying in an Airbnb vs. a hotel? What do travelers
expect out of each experience? How do boutique hotels play a role, and why do
travelers choose one over the other?
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BOUTIQUE
HOTEL
HOTEL

4. WHO USES AIRBNB ANYWAY?
When we asked what type of person consumers would expect to stay in an Airbnb,
they described an adventurous, open, often younger, budget-conscious traveler.
This adventurer is after a unique, localized experience but knows that they don’t
necessarily have to pay a premium price. Overall, the perception of an Airbnb visitor
is a savvy shopper that’s comfortable with not knowing exactly what they’ll get. The
thought is that they’re willing to take a risk booking a place in the hopes of having a
unique experience for a lower price tag than the more commercial alternative.
Visitors, especially women, are often after a “homey” experience (in an anti-hotel
sense) and prefer to stay in an apartment or house.
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Someone who has an extroverted personality,
a person who can trust others. Someone very
outgoing and adventurous who doesn't let bias
or idealistic expectations get in the way of their
experience. – Male, 18-34
Adventurous young person with little money.
– Male, 55+
Someone who wants a different, maybe
cheaper experience than staying in a hotel,
where it's more homey and personal than
living in a generic hotel room with random
neighbors. – Female, 18-34

6. DIFFERENT IS COOL.
Many consumers believe Airbnb guests aren’t interested in being simply “another
guest” at a hotel. Some have an anti-tourism attitude, and want to explore and
experience things that others might not even know about. They reject the idea of a
chain hotel, and prefer the homey and authentic experience granted through Airbnb.
Staying in a home or apartment aligns with the unique, “genuine” experience that
they seek; they love being able to balance social interaction and cultural immersion
with retreating to their own private space – one that is quiet, comfortable, and clean.
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You are staying in a real house. You get to see the
decorations and style of home in another area. It
feels like a home and not just a room. – Male, 35-54
Airbnb provides a more personal, intimate
environment than hotels. They also offer a number
of amenities and perks that are generally not
offered in hotels. Also, they have a better location
than most hotels and are an all around better
value. Personal touches and services are much
more readily available, as well. – Female, 18-34

8. IT’S ABOUT THE JOURNEY.
Travelers are enthusiastic about the locations that Airbnb unlocks. They find that
staying in a home or apartment allows them to be in the heart of the neighborhood,
giving them access to areas that don’t generally have commercial options for
visitors. Some consumers discussed public transportation much more frequently
when talking about an Airbnb stay versus a hotel stay; while a hotel can sometimes
be the destination, an Airbnb is a perfect launching off point for exploration. It’s a
gateway to a local experience, but rarely the destination itself. This isn’t to say that
consumers aren’t imagining a beautiful spot – most want to stay in a home that’s a
bit nicer than their own – but rather that their accommodations aren’t all that they’re
there to see. While they don’t have a checklist of amenities they require (although
WiFi is a must), staying in a place with a kitchen is a bonus (just to have the option
to cook), and potentially frees up funds for other experiences.
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It's a little adventure - but a safe one. The
living spaces are vetted by the person who
rents them. Locations are often exclusive or
convenient. The prices are more than
competitive. But mainly the living spaces
lack the sterility of a hotel, giving you the
feeling of having a home away from home.
– Female 18-34
Comfortable space (intimate interior size
-loft/ studio layout for living
room/kitchen/bedroom with private
bathroom plus balcony/patio) walkable to
amenities is ideal. Property that has no
formal check-in/out so just a security
code to access is best. – Female, 35-54

10. TOAST TO THE HOST.
When it comes to their hosts, consumers unanimously agree on a pseudo-behavior
code. A host is someone who is present if needed, but otherwise leaves you alone.
They’re cordial, hassle-free, organized, and friendly. Most of all, a good host makes
their stay simple: the space is clean and there’s no need to hunt down codes to
open the garage door or acess the WiFi. The host, often through lack of interaction,
makes visitors feel safe in their temporary home.
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The host should be reliable and easy to reach.
The place should be advertised honestly, so I
know what to expect. – Female, 18-34
Hosts offer to show me around city but
leave me alone if I don’t need help.
– Female, 18-34
I appreciate hosts that are concerned towards
their guest's safety, privacy, and enjoyment.
– Male, 18-34

12. THE MOST TRUSTWORTHY HOSTS…
Are hotels. When describing the type of person that would prefer a hotel over an
Airbnb, consumers paint a picture of a conservative, private, and more introverted
guest – much the opposite of the Airbnb traveler. They’re not looking to stir the pot.
Predictability is a plus – even when it comes to the more mundane things, like
knowing they’ll have access to “endless hot water” and knowing what the rooms will
look like. They appreciate consistency and knowing exactly what they’re going to
get in terms of process (from booking through checkout) and amenities
(housekeeping, workout facilities, pool, etc.). This guest values security, and
wouldn’t want someone having access to them and their things. For some, there’s a
greater sense of trust in an organization than in an individual – if something goes
wrong, the hotel will take care of it.
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Since a hotel is run by a public business, I
will be at more ease that I know what
services I will get by going to a hotel. While
Airbnb sounds great for better deals and
more exciting lodging, I can't be sure that I
can trust a host. – Female, 18-34
Consistency. At a hotel, a major chain especially,
I can expect similar service and products. I know
I can talk to a staff member and get results when
there are issues with their service or product.
Some hotels offer deals with local businesses
that can make traveling easier. – Male, 35-54

14. HOTEL AS THE DESTINATION.
Although they still seek convenience, travelers don’t have as high of expectations
for a hotel stay as they do for an Airbnb stay when it comes to affordability and
location. They prioritize security, peace of mind, amenities, and the hotel experience
over neighborhood. That said, for many, the hotel itself is the experience. This is
their chance to get away – to get pampered, relax, and lounge without the everyday
distractions of being home. Women in particular crave an all-encompassing
getaway. Travelers prioritize space, cleanliness, and comfort. They’re mildly
obsessed with towels, linens, and in particular, pillows – something that didn’t come
up when discussing a potential Airbnb stay.
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The room is clean, quiet, smells fresh and
has no odor. The bed and pillows are soft and
feel as if they hug you as you lie into them.
The tub is clean, large, and feels luxurious for
a relaxing bath. The breakfast is extended to
10 AM, and checkout is at noon.
– Male, 18-34
When traveling for vacation, I want as many
luxury options as possible including spas,
pools, shopping, and entertainment.
– Female, 35-54

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AMENITIES GALORE.
Because the hotel is viewed as the destination, and travelers have more prescribed
expectations in terms of what their experience should look like, they have higher
standards for amenities when it comes to hotels. Things like diverse breakfast
options, pools and hot tubs, workout facilities, game rooms, and on-site restaurants
and bars add to the fun and convenience of a hotel. Consumers recognize
amenities as a competitive advantage for hotels, and therefore expect them to be
top-notch as they’re seen as a direct reflection of the brand itself.

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Clean room, lots of amenities, up to date
fixtures, newspaper at your door, free
breakfast, gym, airy light room.
– Female, 55+
Quiet, Cable, HD television, Wifi, Mini bar,
Firm mattress, Clean linen and towels,
Blackout curtains, Clean carpet or hardwood
floor, Easy access to interstate and/or
attractions, modern decor, Digital thermostat,
Pleasant smell, Pool, Fitness Center, Hotel
Bar, Friendly and accommodating staff,
Flexible checkout times, Reasonable cost,
Reward program – Male, 18-34

18. ENTER: BOUTIQUE HOTELS.
Many large hotel chains are expanding to include smaller, boutique-style brands,
often targeting millennial travelers.6
Starwood created Aloft with – you guessed it –
loft-style rooms and upscale pet amenities. Hilton’s Canopy is opening its first
location in the red-hot millennial travel destination of Reykjavik in July 2016. Hyatt
Centric offers unique wellness and remote work amenities. Marriott is leveraging
video content to promote their brands, Edition and Moxy. Many other chains have
additional brands in the works. These niche hotels have the potential to deliver the
more localized experience that Airbnb is known for, for example, Canopy
encourages guests to “grab a Canopy bike, check out the local culture, and get to
know our new neighborhood.” 7
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UNIQUE IS THE NEW BLACK.
Boutique hotels are thought to deliver a unique experience – whether it’s regionally
decorated rooms, personalized interactions with staff, great culinary options on site,
or smaller touches that often slip through the cracks at more standardized chains,
such as chocolate on pillows. An ideal experience at a boutique hotel includes
outdoor lounge space, suite-style living (but not necessarily a kitchen), and
luxurious options to unwind. This idea of luxury exists at many levels – from nice
shampoos and soaps in the room, to being waited on “hand and foot” by staff, to
more traditional elements of hotel luxury such as breakfast-in-bed or upscale spa
experiences. Consumers are enthusiastic about the benefits of breaking the mold of
a traditional hotel stay.

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My favorite boutique hotel has unique qualities
and a fun feel (i.e., local artists painting each
room differently or decorating to a theme).
Courteous and knowledgeable staff. Fun ideas
and history. Drinks on arrival or surprises in the
room. Just more attention to detail compared to
larger hotels. – Female, 18-34
Excellent and personalized service, unique rooms,
trending furnishings, spa-like area (saltwater pool
and hot tub), very open concept, plants,
green/renewable energy – Male, 18-34

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BRIDGING THE GAP.
One way that hotels can fight Airbnb’s takeover is through these unique hotel
chains. When we asked consumers what they expected of a boutique hotel
experience, they envisioned a smaller footprint with unique, local flair and an overall
sense of luxury – but nothing suggests that this couldn’t come from a larger hotel
chain. Even those with established names and long legacies in the hotel industry
have the opportunity to provide a unique experience to guests that break the
traditional mold of what consumers expect a hotel to be. These chains from Hilton,
Marriott, Starwood, Hyatt, and more, not only have potential to succeed, but could
have a very strong foothold in the travel industry, as they are the best of both worlds
in terms of uniting the more localized aspect of Airbnb and the trust and security that
comes with staying at a chain hotel.

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TRUSTWORTHYUNTRUSTWORTHY
UNIQUE
EXPERIENCE
STANDARD
EXPERIENCE
BOUTIQUE HOTEL
HOTEL

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BRINGING IT HOME.
Airbnb is revolutionizing the travel industry, both through its own booking platform and the innovation it
has catalyzed in the hotel space. Here are a few things hotels should consider moving forward in order
to deliver on traveler’s needs and desires:
• Digital doesn’t matter as much as we think it does. Especially when it comes to millennials, we’re quick to
think that any improvement is riddled with digital advances. Many of the emerging millennial-focused hotels
include technological bells and whistles, including robot bellhops (Aloft)6
, keyless entry (Moxy)8
, and more.
Consumers didn’t discuss digital at all when talking about ideal experiences at an Airbnb, hotel, or boutique
hotel. Beyond expecting WiFi, they aren’t seeking out the latest and greatest gadgets as part of their stay.
• Trust in an individual vs. an organization. Airbnb has proven that we trust each other on a level that a decade
ago many people would have thought was not possible. Yet many travelers are still hesitant to choose to stay in
a location where a stranger has access to them and their things over a place that operates under a larger brand.
While Airbnb has an opportunity to market themselves as a larger brand, touting the support and security that
they provide to hosts and guests alike to increase the comfort level of travelers, Hotels have a leg up. The
challenge for them will be remaining the trusted hospitality choice while broadening the experiences they offer
their guests.
• Different is good (but not always better). There will always be a segment of the population that wants a
streamlined travel experience where they know exactly what to expect, and different trips require different
lodging (e.g., business trip vs. bachelorette party). That said, more and more, travelers are seeking out unique
experiences and want to explore in ways they haven’t before. While Airbnb is uniquely positioned to enable this
type of travel, hotels don’t need to sit on the sidelines. Hotels can play host by crafting personalized
recommendations for travelers, such as asking staff members to share what they love about the area, much like
a host would (e.g. “Our Manager, Terry, loves to do this hike with her kids!”).
• More than millennials. The desire for a unique experience – such as regional décor and personalized
interactions– is not unique to millennials. While major hotel chains are often innovating primarily with millennials
in mind, they should consider trying to deliver unique experiences to young and old travelers alike.

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BEHIND THE SCENES.
We believe that with forethought and careful execution, you only need a few
questions to glean a ton of insight. Using ThoughtPath, our proprietary cognitive
framework, we crafted a handful of questions around Airbnb, hotels, and boutique
hotels and asked them of 1,500 consumers each. Feedback in hand, our
qualitative experts utilized our (iM)merge Analytics approach to cull through the
data, tease apart the nuance, and gain a deeper understanding of how consumers
view and discuss each type of accomodation.

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PREFERENCES
Describe a situation when you’d prefer to stay at
[a hotel over an Airbnb / an Airbnb over a hotel]?
IDENTITY
Describe the type of person who would prefer to
stay in [a hotel over an Airbnb / an Airbnb over a
hotel]?
EXPERIENCE
Explain what you are looking to get from a stay
at [an Airbnb vs. a hotel / a hotel vs. an Airbnb]?
BOUTIQUE
If you were going to stay at a boutique hotel,
what would you expect your experience to be
like?
THE QUESTIONS:

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SOURCES
1. http://www.pewinternet.org/2016/05/19/the-new-digital-economy/
2. https://growthhackers.com/growth-studies/airbnb
3. http://www.bbc.com/news/technology-36212451
4. https://www.thestreet.com/story/13545819/1/rental-rewards-america-s-spare-bedrooms-are-
an-untapped-175-billion-opportunity.html
5. http://fortune.com/2016/01/27/big-hotels-airbnb/
6. http://www.nytimes.com/2016/04/10/travel/millennials-hotels.html?_r=0
7. http://canopy3.hilton.com/en/index.html
8. http://moxy-hotels.marriott.com/our-story

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