Home rental business, specifically Airbnb’s business, has been building up a larger profile since the past few years. Recently, Airbnb has decided to extend its reach to the hotel industry and just after that, Marriot announced that it will be joining the home rental business and has also started its trials. It’s almost like Marriott is hitting back Airbnb for getting into hoteling.
Paris, Rome, Lisbon, and London were chosen for trials where Marriott rented out 340 properties. This test served as a model for the home rental program on a larger platform. According to Marriott, they will start renting 2000 homes in 100 cities across the US, Europe, and Latin America.
Stephanie Linnartz, Marriott’s global chief commercial officer, said in a statement,
The launch of Homes & Villas by Marriott International reflects our ongoing commitment to innovation as consumer travel needs evolve. What started out as a pilot a year ago is now a global offering.
This announcement came as Airbnb is readying to go public. We don’t know when, but it will be somewhere in 2020.
Airbnb’s CEO Brian Chesky just announced that the company will be going public in 2020. When it comes to the home rental business, Airbnb has 6 million rentals globally and no matter how much it expands its business into hoteling, the home rental business will always stay Airbnb’s bread and butter.
As far as Marriott’s expansion in the home rental business is concerned, Chesky said, “I don’t think anyone is going to be so large that they’re a major threat”. Airbnb has declined to comment on the topic any further.
Marriott Rental Properties
Marriott’s main reason for jumping into the home rental bandwagon is because an average customer stays 3 times longer at a rental home rather than a hotel room. Marriott has some basic rentals and then some luxury rental properties which include six-bedroom villas in Sorrento, Italy including a wood-fired pizza oven and an infinity pool looking over the Mediterranean. Another one is a villa in Anguilla which has its own private beach, personal staff, and a private butler. They also have an Irish castle with a private lake.
Even though Marriott is a big consumer name in the hospitality business, it still has a long way to go to compete with Airbnb in the home rental business.