Airbnb, a travel booking site, has just purchased the HotelTonight app for a cool $400 million. It will be adding select boutique HotelTonight rooms to its platform and will be maintaining the existing website. The deal is said to be a big step towards diversifying the company’s business.
While a hotel booking app is not new, it has been growing at a rapid pace. As of last year, Airbnb had doubled the number of accommodations listed on its website. In fact, it currently has five million places to stay in 191 countries. You can book a variety of places, from private villas to apartments.
Not only does it offer a wide variety of accommodations, it is also relatively inexpensive. In fact, the average price per night is about 30 percent lower than the price of a traditional hotel room. This is partly due to the fact that guests often receive discounts if they extend their stays.
The company has also rolled out a loyalty program, which rewards frequent users with a free stay. Interestingly, it also offers a system that enables travelers to compare similar homes and their rules. One feature of the company’s apps that stands out is its ability to list rooms in excess of the usual inventory from big brand hotels.
As a result, the hotel industry has been shaken up. Hotels are now less expensive, and consumers are starting to use the site to find an alternative to hotels.
The HotelTonight app has been touted as one of the best hotel booking apps in recent years. They’ve been downloaded by millions of people worldwide. That’s a pretty impressive figure for a startup with a little over a year in the game. But that isn’t to say that the company hasn’t had its fair share of criticism.
For instance, a study found that ninety-five percent of Airbnb’s hotel guests return to the site for a second stay. However, it should be noted that the company doesn’t carry large hotel chains such as Hilton and Marriott. Instead, you can choose from a number of two-bedroom apartments and rooms.
There are a number of other hotel booking apps. Vrbo, a similar service, and even hotel aggregators such as HostelWorld and Booking.com aren’t immune from accusations of imitating the HotelTonight app.
The company has also pushed for regulation of the short-term rental industry. At one point, HotelTonight co-founder Sam Shank left the company to ponder the next big step. He had previously co-founded TravelPost, SideStep, and DealBase.
Although the acquisition of the HotelTonight app is not a total game changer, it is a major milestone for the company. With the addition of the HotelTonight name, the company’s presence in the crowded marketplace will be felt.
The company has been experimenting with other ways to attract guests to its app. For example, it recently introduced a site-inspection program, which allows for the quick inspection of a potential host’s property before they accept a reservation.