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Airbnb revamps price displays to quell frustration as summer travel (and hotel competition) heats up

Snacks / Thursday, May 04, 2023

$200 rental, $100 cleaning fee… Yesterday Airbnb rolled out dozens of new features and upgrades to keep travelers checking in this summer. The rental rockstar has 4M+ hosts worldwide and expects 300M guests this year. But complaints have piled up as hidden fees and high prices make booking frustrating. Now:

  • Price check: Airbnb rentals will display the cost per night, fees, and taxes all at once. Plus, guests in the US and Canada can start using Klarna to buy now, pay later for stays over $500.

  • Couchsurf: A "Rooms" option lets budget-conscious travelers stay with hosts at an average rate of $67/night. “Host Passports” will display fun facts (see: WFH cat mom).

  • King-size: Airbnb dropped record earnings in February, notching its first profitable year, and is forecasting even stronger results this year.

Check-in and chores… Airbnb booking surged during the pandemic as it benefited from the remote “work from anywhere” trend. But a flood of users on social media and forums like Reddit complain about pesky chores (see: vacuuming, dishes) coupled with sometimes staggering cleaning fees. Now, as travel recovers and guests get pickier about perks, good ol’ hotel chains are starting to catch up.

  • Continental breakfast: Last quarter, Marriott's revenue surged 34% as occupancy jumped at all its North American properties. Hilton also topped estimates, with its revpar (aka: revenue per available room) topping prepandemic levels for the first time.

Convenience isn’t always convenient… While Airbnb can offer more flexible prices and broader options than hotels, the fine print can make booking more trouble than it's worth. Meanwhile, traditional hotel chains offer the comfort of consistency (think: cleaning, room service) and rewards programs that incentivize loyalty. By addressing its users' qualms, Airbnb can avoid getting ditched for better options.

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