Analysts said Airbnb for Business’ partnerships with three
major travel management companies (TMC), announced last week, were
unsurprising, a natural progression in providing business travelers with the
increasingly popular private spaces that are convenient, comfortable and, in
many cases, cheap accommodations.
“With employees looking for the comforts of home, a low
rate, especially in major cities, and/or a space large enough for small
meetings, corporate travelers are increasingly seeking out Airbnbs,” said
Lorraine Sileo, senior vice president of research at Phocuswright. “Considering
the inevitable, it makes sense to integrate Airbnb into corporate programs.”
Airbnb announced last week that it has partnered with
American Express Global Business Travel, BCD Travel and Carlson Wagonlit
Travel.
It will be integrated as a preferred supplier for American
Express customers. In the first phase of integration, expected in the coming
weeks, once American Express refers customers to Airbnb, they can book directly
on Airbnb.com with their corporate email addresses. Soon, Airbnb booking information
will be integrated into American Express’ reporting platform for
expense-tracking purposes.
At BCD, Airbnb will integrate its data into BCD’s
DecisionSource business intelligence and security solution. Clients will be
able to use interactive maps and view reports on destinations, while BCD will
be able to keep track of travelers who booked with Airbnb and communicate with
them in the event of any incidents.
When asked if Airbnb will become a preferred supplier for
BCD, Ana Pedersen, vice president of global hotel strategy, said the TMC and
Airbnb “continue our discussions where other commercial opportunities may exist
for both companies.”
Pedersen said BCD is Airbnb’s corporate TMC.
At Carlson Wagonlit, Airbnb will be added to its offerings
for its clients. Carlson Wagonlit said it expects full rollout on Oct. 1, but
further details have yet to be finalized.
“By adding Airbnb to our offering, we’re providing travel
managers with exactly the flexibility they need,” said Scott Brennan, Carlson
Wagonlit’s president of hotels. “It will be especially helpful for travelers on
extended assignments.”
Extended-stay business travelers will likely benefit from
agreements like those Airbnb has begun to forge, according to Christopher
Anderson, director of the Center for Hospitality Research and associate
professor at the Cornell University School of Hotel Administration.
“I could see how it would be very attractive to aspects of
the business segment,” he said, highlighting the amenities an Airbnb property
could give extended-stay travelers.
Henry Harteveldt, an analyst with Atmosphere Research Group,
also pointed to the expanded options that alternative accommodations offer
business travelers. But he also cautioned against some potential issues
travelers could have with private-home type of accommodations, such as a
property’s overall cleanliness, a lack of certain amenities such as an on-site
gym, and basic safety concerns such as working smoke detectors.
“These may seem like trivial things, but for a travel
manager and the duty-of-care responsibilities that a company has toward
employees, they’re important,” Harteveldt said.
“Airbnb needs to make sure that if a host wants to list his
or her property for business travelers, that some of these details are
addressed or at least acknowledged;” for instance, by clearly stating an
apartment building lacks a gym, if that’s the case.
Late last year, Expedia Inc. bought HomeAway, a
vacation-rental provider. Anderson said he felt that acquisition in the
alternative accommodations space — and the possibility of making that supply
available via Egencia, Expedia’s business travel unit — might have helped
motivate Airbnb to partner with other travel sellers.
Regardless of the motivation, though, Harteveldt said there
is room for expansion in offering alternative accommodations to business
travelers.
Atmosphere Research Group’s data indicates that in 2015, 8%
of business travelers stayed in a home-sharing environment, whether it was an
apartment, condominium or similar, Harteveldt said. Atmosphere is projecting
that in 2016, that will rise to 10% of business travelers.
“There is a growth opportunity here,” he said.
TMCs are aware that their travelers want access to
alternative accommodations. In a statement announcing the partnership with
Airbnb, BCD called it “a significant first step toward a much broader
offering.” Pedersen confirmed that the TMC is open to entering into future
relationships with suppliers such as Airbnb.
Moreover, Sileo said, sharing economy services like Airbnb
and Uber are here to stay.
“It’s becoming more mainstream for sure, no longer just for
millennials looking for cheap, alternative lodging,” she said.
Harteveldt predicted more partnerships between Airbnb and
TMCs are coming, and Anderson agreed.
“I think everyone is just more cognizant of how to work with
the burgeoning channel,” Anderson said. “I think in the early days there was
ignorance, then there’s fear. Now there’s kind of, like, ‘How do we work
together?’”