AIRBNB warms up to OTA model for hotels, announces official partnership with DJUBO
The $30 Billion travel startup – AIRBNB – is known by many as the world’s largest network of real estate owners looking to rent out their accommodation to travellers. AIRBNB has traditionally been a somewhat closed model on the lines of Apple (to draw a corollary from a different space) where it has never opened itself to integrations with hotel technology product companies. It has also traditionally encouraged only home owners and small entrepreneurs to list their properties on the portal and preferred working with suppliers who work exclusively on Airbnb alone. Hotels was never a focus area for Airbnb so far.
However, in a major shift in global strategy, AIRBNB has launched their official API programme and opened themselves to listing and selling regular hotels on their platform. Which means hotels can now look at AIRBNB as an additional revenue channel for themselves. When coupled with the fact that AIRBNB charges only 3% commission from hotels, as against the 20-30% commissions being charged by other OTAs in India and internationally, this could be a game changer in the OTA as well as Hotel distribution space and can bring in more competition where the likes of Booking.com, Expedia, Ctrip, Makemytrip and a few more are already competing with each other.
In line with this global strategy AIRBNB has entered into a unique partnership with DJUBO, which is an India based All-in-One Cloud based Hotel Management Solution Provider with clients across 25 countries. DJUBO offers Property Management System, Channel Management Systems along with Revenue management systems to Hotels, Bed and Breakfasts and Vacation Rentals and distributes inventory to over 100+ OTAs and GDS.
Commenting on the launch of the partnership, Mr Sankalp Goel, Co-Founder India said, “While Airbnb will continue to motivate home owners and small entrepreneurs to list their properties and deliver a unique local experience to guests as that is their core product and value proposition, at the same time we feel that there is a huge number of hotels who also deliver high quality service at an extremely competitive price point and are run with the same level of passion that you find in family run vacation rentals. Such boutique properties have a lot of character and its certainly a segment that will benefit from Airbnb’s distribution capability. In keeping with that global approach, DJUBO and AIRBNB have announced an official API partnership which will help us bring this supply onboard and help such hotels and vacation rentals manage their rates and inventory easily through DJUBO’s interface itself.”
Rishikesh Singh, CTO, DJUBO mentioned on the occassion, “DJUBO is extremely excited to be chosen by AIRBNB as their official integration partner. We have over 2000 hotels, bed and breakfasts and vacational rentals as clients to whom we provide channel management, property management and revenue management solutions. We have been growing revenues of our client hotels by 43% year on year. With the addition of AIRBNB as our official distribution partner, a strong new revenue source will get added to these hotels and should increase their reach and visibility even further. We have developed a full interface by which the hotel can manage their entire listing, ie even pictures, category names and inclusions along with rates and inventory on AIRBNB through DJUBO itself. We feel it will be a great leap ahead for our clients and we hope to grow this partnership to great heights and achieve the proverbial win-win for all”
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