Marriott to Join Home Rental Market
Summary of the Article:
Over the past few years, Airbnb has become increasingly more popular. Now Marriott, one of the largest hotel operator, is wanted to join Airbnb with their own form of home rentals. More customers seem to prefer the home rental option over the hotels. Marriott will allow customers to book through their website as well as use their loyalty programs to either get points or use them. Due to the recent surge of Airbnb, other major hotel companies are looking into the home rental as well. While the major hotel companies are looking into home rentals, Airbnb, is looking into the hotel business. They are looking to offer their customers discounted hotel rooms. Airbnb is already under scrutiny within some of the city officials because the officials already see Airbnb as an illegal form of hotels using the homes. Marriott executives could not pass up the opportunity to enter the home rental business as home rentals are continuing to grow in popularity. Marriott has started their home rental business in Europe before making it global. Marriott has seen that its customers are willing to stay for longer periods of time than when they stay at a hotel. In addition, the space that their customers are given when renting a home rather than a hotel appealed to them. The customers will be given more space as well as a kitchen and laundry space within their home rental. Since their customers are renting through Marriott themselves, the customers are able to access 24-hour support. Overall Airbnb, has now lead multiple companies to the home rental business, changing the way that the customers are able to travel.
How does this article pertain to Marketing?
Prior to Marriott joining the home rental business, Airbnb did not have much competition with other major companies. Now that the Marriott and others are joining, there will be an increase in competition. However, by Marriott entering into home rentals, this could be harmful to their hotel business. They are creating new competition and run the risk of alienating their hotel partners. Also, consumers taste has changed. In the past, most customers were renting hotels, however, now their taste has changed to renting homes. To capitalize on the change and to ensure that they are not losing loyal customers as well as new, they are starting their own version. In addition, Marriott is making them more appealing as the customers are able to gain loyalty points that they can redeem or gain through their stay. This is something that Airbnb does not have, which makes it unique to Marriott.
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