Photo Credit: An Airbnb host in Kathmandu. Airbnb
Airbnb’s new dynamic pricing tool is a first step toward becoming a “soft franchise” operator for hosts, similar to how big hotel groups like Hilton, Marriott, and IHG work with owners, according to a Bernstein research note.
Airbnb announced last month that it added dynamic pricing for hosts, who can tap on an Airbnb-recommended price range to view how their nightly rates would change based on supply and demand. This Airbnb service is currently free for hosts — although hosts pay around 15.5% commissions.
"The company is steadily expanding into areas that sit much closer to operating the asset itself. Pricing tools are the clearest example, but they are unlikely to be the last," Bernstein wrote.
Bernstein pointed to other potential offerings, such as revenue management, design consultation, property management software, guest communications, cleaning coordination, and insurance and smart-home hardware. "As each layer is added,