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Winning Back Guests from Airbnb: How Hotels Can Close the Gap and Regain Market Share
Winning Back Guests from Airbnb: How Hotels Can Close the Gap and Regain Market Share

Winning Back Guests from Airbnb: How Hotels Can Close the Gap and Regain Market Share

Jen Reck
Jen Reck
August 15, 2025

Over the past decade, Airbnb has reshaped the hospitality landscape. Guests aren’t just looking for a bed to sleep in anymore, they’re looking for space, authenticity, and value. Many now opt for short-term rentals over traditional hotels because they want the comforts of home, a “live like a local” experience, or the perception of a better deal.

But here’s the opportunity: hotels already excel in areas Airbnb can’t match, consistency, safety, on-demand service, and built-in amenities. The challenge (and opportunity) lies in blending those strengths with a few “home-like” and hyper-local touches that guests crave.

Why Guests Choose Airbnb and How Hotels Can Respond

Let’s break it down:

Airbnb Strength Hotel Counter-Move
Lower price / perceived better value Transparent, all-in pricing with no hidden fees; extended-stay tiers and bundled packages (cleaning, laundry, Wi-Fi).
Space and household amenities (kitchen, laundry) Micro-suites and aparthotel offerings with kitchenettes, in-room laundry, and fold-out couches.
“Live like a local” authenticity Local partnerships, curated neighborhood guides, pop-up experiences with nearby artisans/restaurants.
Flexible self-check / autonomy Mobile check-in/out, digital keys, and in-app room controls.
Perceived privacy / whole-home feel Dedicated “private residence” floors or small apartment blocks managed by the hotel.
Personal host interactions Staff as “neighborhood ambassadors,” personalized welcomes, guest preference profiles.
Novelty and uniqueness Themed or boutique rooms, rotating local art exhibits, and experiential stay packages.

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Quick Wins Hotels Can Launch in 90 Days

Some improvements don’t require massive budgets or overhauls:

1. Show all-in pricing up front: No one likes surprise resort fees.

2. Test self-check-in and mobile keys in a pilot set of rooms.

3. Create a “Local Welcome Kit” with neighborhood tips and local snacks.

These moves are easy to market, easy to measure, and start shifting guest perception quickly.

Mid- to Long-Term Strategies

Once the quick wins are in place, hotels can focus on larger shifts:

• Extended-stay rates with home-style perks (laundry, kitchen access).

• Micro-suite redesigns to add space and home-like amenities.

• Partnerships with local businesses for tours, food, or curated events.

• Dedicated private residence floors for guests wanting privacy and longer stays.

Example Packages That Sell

• Work-from-Stay: 7+ night bundle with high-speed Wi-Fi, desk setup, and weekly housekeeping.

• Family Home Suite: 2-bedroom micro-suite with crib options and kids’ welcome kits.

• Local Living: Neighborhood walking tour credit and a welcome basket of local treats.

• All-in Price Promise: No hidden fees; the price you see is the price you pay.

Measuring Success

You can’t improve what you don’t measure. Focus on:

• Conversion rate for extended-stay offers.

• Average length of stay (LOS).

• Direct booking percentage (vs. OTAs).

• Guest satisfaction & Net Promoter Score (NPS).

• Ancillary revenue from local experiences and F&B.

The Big Picture

This isn’t about hotels trying to become Airbnb. It’s about integrating the home-like flexibility guests love with the trust, service, and amenities only hotels can deliver.

Hotels that act now, even with small pilots, can reclaim market share, lengthen stays, and turn “Airbnb intenders” into loyal repeat guests.