As a CEO of a 5 Star hotel, how will you deal with the threats from Airbnb

Looking at the current scenario and the growth of Airbnb, the hotel industry definitely needs to pay a closer attention and innovate new strategies to stay ahead.

As a CEO of a 5 star hotel, first need to analyse why is Airbnb a threat and then take action accordingly.

The main advantage of Airbnb is the cost advantage and local experience during their stay.

In my mind below are couple of steps a CEO of 5 start hotel should take to compete with Airbnb:

1.     Sell hotel rooms on twin sharing basis. Not the premium rooms but the low segment/category rooms.

2.     Hotel should start charging the guest on hourly basis for their stay, instead for fix check-in and check-out timing. à need to innovate on the pricing strategy.

3.     Guest should be allowed to do web check-in and check-out. à Hotel needs to adapt innovative technology to track guest stay in hotel.

4.     Hotels should tie up with service apartments within the local area/city.

à  this helps provide a local city experience for the travellers.

5.     Hotel should make laundry area available to use for the guest at minimum price.  àan addon service for the guest who wish to stay longer.

6.     The restaurants (within the hotel), guest should be given access to the kitchen area. à For the guest who wants to experience the local cuisine preparation.

7.     Hotel should start working on bed and breakfast model, rather than charging for entire day. Guest should be given option of lockers where guest can keep their luggage for the day. This locker should be charged. à specially for the business travellers.

There are some traditional travellers who still prefer hotels for stay over Airbnb.

In my point of view, these above services would help enrich experience of such traditional guest and as well help hotel regain customers.