Airbnb adds hotels to its platform in a bid to drive growth

synonymous with short-term rentals, is adding independent hotels to its platform, banking on more traditional accommodations to drive growth. According to the Financial Times, the company has launched a pilot project in cities including New York, Los Angeles, Paris and Madrid, allowing users to choose from a range of boutique hotels alongside private residences.

According to the publication, the company wants to attract new partners by offering lower rates than those charged by agents such as Booking.com and Expedia, adding that the inclusion of hotels targets business travelers, who tend to prefer the predictability and services of this type of accommodation over private apartments.

The FT highlights that the initiative will help offset the impact caused by the growth of movements in some locations to restrict short-term rentals, with New York being one of the cities that adopted new rules.

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At the end of March, Airbnb began offering transportation services in private vehicles in the main markets outside the US, already betting on its project of offering services similar to hotels, in addition to accommodations.

The company has partnered with Welcome Pickups, a British company specializing in airport transfers, to offer the service to guests traveling to 125 cities in Asia, Europe and Latin America, including Paris, Bali and Mexico City.

After booking a stay on Airbnb in an eligible city, users will see the option in the app to schedule a private car service to their accommodation. Customers can also opt for a reception service at the place of arrival.

Founded in 2008 by a trio including current CEO Brian Chesky, Airbnb has built an $85 billion home-sharing business that has changed the way tourists find accommodation. However, the company faces persistent criticism that it and its competitors contribute to rising rents and housing costs.

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