While not dismissing its growing popularity, Hilton Worldwide CEO Christopher Nassetta does not consider Airbnb a threat to his company’s business model.
During comments on the companies Q3 earnings call on Wednesday Nassetta said the company did an independent analysis of Airbnb and found much of its demand comes from urban markets where Hilton already has strong demand drivers. He said those Airbnb customers are booking longer stays and are more focused on value and willing to accept an inconsistent product with limited services. “I think it’s extremely hard for them to replicate what we’re doing,” Nassetta added.
“I strongly do not believe that they are a major threat to the core value proposition we have,” Nassetta said. “As we speak to our largest corporate clients, we’re confident that Airbnb will not satisfy a meaningful piece of their demand.”
Nassetta added that while he expects Airbnb to stick around for a long time and that it is a good business, “I just think it’s serving a different kind of need.”