F R A N K G A I N E
  • Blog
  • Contact

Airbnb sees the return of middle man

14/11/2013

5 Comments

 
Recently, I searched for two rooms to accommodate a couple and single person in Amsterdam. They were coming to this wonderful city for the weekend. I compared the prices of hotel rooms with apartments on Airbnb. I had hoped that the latter would be cheaper and give my guests a more Amsterdam experience. But no. Despite a survey in the US stating that Airbnb apartments are on average 21% cheaper than hotels rooms, prices were more or less the same. That is unless you prepared to forego the second bedroom and put up with some kind of awkward sofa bed experience in the common area of the Airbnb apartment. 

This got me thinking about why prices were so similar. Then I thought about what a friend told me. He has an apartment in Amsterdam which lets out via Airbnb on a full time basis. It's being managed, along with many others, by a middle man who arranges for key transfer and cleaning. He levies a hefty 20% commission for his services. My friend admitted that to some extent, he had factored in this commission when setting the rental price of his apartment. Wasn't the whole purpose of Airbnb to allow people to accommodate travellers in their homes for some extra income? Wasn't it all about avoiding the middle man fees in the first place? As Airbnb becomes more and more of a viable business for landlords, it is starting to approximate traditional business models and abide by the laws of supply and demand. At the end of the day, good accommodation will always command a good price. 
airbnb, bringing back the middle man
5 Comments

    Welcome

    I'm Frank Gaine. Strategist, Designer, Manager, Founder, Educator. 

    I help organisations design compelling user experiences for their products and services that are commercially effective and a delight to use​.
    ​

    View my profile on LinkedIn

    Archives

    April 2022
    July 2018
    December 2016
    October 2015
    November 2014
    September 2014
    August 2014
    July 2014
    May 2014
    March 2014
    February 2014
    January 2014
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012

    RSS Feed

    frank@netgaine.com
    @theUXswitch
    @netgaine
    LinkedIn 
Powered by Create your own unique website with customizable templates.
  • Blog
  • Contact