More travelers are staying in other people’s homes when they go on vacation. In 2015, a third of Americans were using Airbnb, VRBO, HomeAway, and other such platforms to book travel accommodations, according to a new report from analyst firm MoffettNathanson. In 2010, that figure was just 8%.
While the growth is good news for Airbnb, there are still certain people who aren’t interested in renting through these platforms. Among travelers who avoid services like Airbnb, here are the top reasons why, per MoffettNathanson’s report:
- 38% — prefer hotel services
- 38% — uncomfortable staying in someone else’s home
- 37% — prefer hotel property amenities
- 36% — prefer hotel room amenities
- 34% — option never occurred to me
- 27% — renting a home is too expensive
- 26% — do not need the extra space
- 17% — concerned about safety
- 17% — concerned about cleanliness
- 16% — not sure what to do if there is a problem during stay
- 9% — not comfortable with booking and payment process
To compete with hotel amenities, Airbnb has plans to get into more services through its planned luxury offering, Lux. Last year, the company acquired the Canadian based company Luxury Retreats, which provides high-end rental homes and a bevy of services, like a home chef, massage, and concierge. As of last fall, the company had amassed 5,000 luxury homes on its platform.
But its biggest hurdle is not necessarily developing services, though that will be important for the company in the long term. It’s safety. While Airbnb has put down a million-dollar guarantee to cover unruly guests and run background checks on hosts, the platform is still prone to unexpected circumstances. In order to capture a larger share of the market, it will need to convince customers that its homes are as safe as a hotel room.RR