Lessons from Airbnb: What Hotels Can Learn from Short-Term Rentals
- Richard Chandler
- Mar 7
- 5 min read
For over a decade, Airbnb and other short-term rental platforms have disrupted the hospitality industry, challenging traditional hotels to rethink their strategies. While hotels maintain advantages in consistency and service quality, short-term rentals have captured a growing segment of travelers with unique value propositions. Instead of seeing Airbnb as a threat, hoteliers should view it as an opportunity to adapt, innovate, and capture a share of the changing market. Here are key lessons hotels can learn from the success of short-term rentals.
1. Transform Stays into Immersive Experiences
One of Airbnb’s strongest appeals is how it allows travelers to immerse themselves in a destination rather than just visit it. Guests seek authenticity, whether through local decor, unique accommodations, or experiences that make them feel part of the community.
How Hotels Can Adapt:
Partner with local businesses to offer unique guest experiences, such as exclusive dining events, guided city tours, or artisan workshops. A single well-placed partnership with a popular local bakery or restaurant could provide a delightful welcome gift in each room, such as a signature pastry or a small sample of a well-known dish. This not only enhances the guest experience with an unexpected, thoughtful touch but also drives exposure and potential business to the partnering establishment.
Train staff to act as local ambassadors, providing guests with tailored recommendations beyond the usual tourist spots. To truly equip them with insider knowledge, take employees on immersive, off-the-beaten-path tours or organize scavenger hunts through the city’s hidden gems. Let them experience these unique locations firsthand—whether it's a tucked-away jazz bar, a family-run bakery, or a historic alley with an untold story. This hands-on approach ensures they can offer authentic, enthusiastic recommendations that guests won’t find in a standard travel guide.
2. Design with Local Flair to Excite and Delight
Guests today want their accommodations to feel like an extension of their destination. Instead of generic rooms, they crave spaces infused with character and charm—whether through locally sourced decor, art, or design elements inspired by the surrounding area.
Creating a sense of place within hotel rooms can elevate a guest’s experience and make their stay more memorable.
How Hotels Can Adapt:
Instead of uniform room designs, hotels can create spaces that reflect the local culture and charm. Incorporating regionally inspired decor, handcrafted furniture, or art from local artists can make each room feel unique and enhance the guest experience. Think, the "Dolly Parton Room" or the "Cat Lady Room".
Create themed rooms that cater to niche traveler interests, such as wellness-focused rooms with simple yet thoughtful touches like yoga mats, sound machines, or aromatherapy diffusers. These small, inexpensive additions can transform a standard room into a relaxing retreat. Adventure-themed suites could feature local trail maps, gear storage, or even curated recommendations from local outdoor enthusiasts. By incorporating affordable enhancements that align with guest interests, hotels can provide a memorable experience without significant renovation costs.
Sell two connecting rooms together as a single 'virtual suite' to attract families and groups who would otherwise opt for short-term rentals with multiple bedrooms. This setup provides the space and privacy that larger travel parties seek while allowing hotels to maximize room occupancy. Additionally, bundle these virtual suites with perks like a shared living area setup, in-room dining credits, or tailored family-friendly amenities to enhance the experience and differentiate from standard room offerings.
3. Digital-First Convenience Matters
Airbnb’s streamlined, mobile-first booking process and in-app communication set a high standard for digital ease of use. Today’s travelers expect seamless digital interactions throughout their stay. Fortunately, most franchise hotels already have a strong digital presence, with well-optimized mobile apps and websites that can rival Airbnb’s booking experience. Independent hotels can also level the playing field by utilizing off-the-shelf app and website solutions, making it easier than ever to implement mobile bookings, digital concierge services, and keyless room entry without major infrastructure investments.
How Hotels Can Adapt:
Invest in a frictionless booking experience, ensuring that direct bookings are as intuitive and fast as Airbnb’s platform.
Implement AI-powered chatbots or messaging apps to provide real-time guest support and recommendations. For hotels looking for guidance on implementing these digital solutions, visit www.upturnhotelconsulting.com to explore how expert strategies can help optimize your guest experience and operational efficiency.
Leverage mobile apps or digital keys for room access, reducing the need for traditional front desk check-ins. Additionally, hotels can introduce self-service kiosks in the lobby to streamline the check-in and check-out process, similar to what airlines have done. These kiosks provide guests with a fast, hassle-free way to access their rooms while reducing strain on front desk staff and improving overall efficiency.
4. Pricing and Revenue Optimization Should Be Dynamic
Airbnb hosts often use dynamic pricing tools to adjust rates based on demand, seasonality, and local events. In fact, Airbnb offers its own "Smart Pricing" feature that allows even novice hosts to efficiently manage their rates like a professional revenue manager. This automation ensures their listings remain competitive in real time without manual intervention.
How Hotels Can Adapt:
Hotels should not only monitor the pricing of their traditional competitors but also keep a close eye on short-term rental rates in their area. Many travelers consider both options when booking a stay, so hotels need to ensure their pricing remains competitive against Airbnb and other rental platforms. By integrating STR pricing data into their revenue management strategies, hotels can better adjust rates in real-time, respond to market demand, and capture guests who might otherwise opt for alternative accommodations.
Offer direct booking incentives, such as exclusive discounts or bundled experiences, to compete with Airbnb listings. Highlight value-added services that short-term rentals often lack, such as daily housekeeping, concierge support, and on-site dining options. You could even promote your in-house housekeeping services as a major differentiator since most short-term rental listings charge a hefty cleaning fee and only offer cleaning at the end of a stay. Hotels should also emphasize the reliability and professionalism of their service standards, ensuring guests receive a consistently high-quality experience.
5. Community and Storytelling Build Brand Loyalty
Unlike hotels, many Airbnb hosts develop personal connections with their guests, share their stories, and create a sense of community. This fosters strong guest loyalty and word-of-mouth marketing. In contrast, hotel front desk interactions can sometimes become overly transactional, focusing only on check-in details like length of stay and payment methods. Hotels should encourage their staff to go beyond basic questions and engage guests in meaningful conversations.
A simple, personalized interaction—such as asking about a guest’s travel plans, recommending a local hidden gem, or sharing a personal favorite dining spot—can create a memorable experience and build stronger guest relationships.
How Hotels Can Adapt:
Encourage staff to engage more personally with guests, creating memorable interactions.
Use storytelling in marketing efforts, highlighting hotel history, unique features, or staff personalities.
Foster an engaged social media community, encouraging guests to share experiences and reviews in an organic way.
The Future: A Hybrid Approach?
The hospitality industry is evolving, and hotels that integrate the best aspects of short-term rentals while leveraging their own strengths will come out ahead. By crafting immersive guest experiences, designing rooms with unique local flair, embracing digital convenience, optimizing pricing dynamically, and fostering stronger guest relationships, hotels can offer something short-term rentals simply cannot: a seamless blend of reliability, personalization, and professional service.
Success in this new landscape requires adaptability. Hotels must continuously refine their approach—experimenting with new room concepts, enhancing digital engagement, and maintaining a personal touch in guest interactions.
The best way to compete isn’t to copy short-term rentals but to learn from them and innovate beyond them.
Instead of competing head-to-head with short-term rentals, hotels should take inspiration from their success and apply these insights to elevate the guest experience, boost loyalty, and drive revenue growth. The hospitality industry is changing—those who adapt will thrive.
Join the Conversation
What strategies has your hotel implemented to compete with short-term rentals? Share your thoughts and insights with us! For expert guidance on optimizing your hotel’s operations and guest experience, visit www.upturnhotelconsulting.com.
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