The home rental service provider Airbnb has introduced the high-end vacation rentals to the visitors by acquiring the villa rental company Luxury Retreats. Airbnb is providing hospitality services and it was started when the founders of the company place an air mattress in their living room and start renting out that space to the tourists.
Airbnb is San Francisco-based online marketplace that allows the user to find, list and book the different kinds of accommodations across the world. It has offered lodgings for a night or even a villa for a month and operated in 191 countries and above 65,000 cities.
It provides a better platform for the users who want to showcase their extra space in their homes for rent. It has more than one hundred fifty million guests and contains more than three million listings that include 1,400 castles. It provides an opportunity to the tourists to know more about the place and it creates an environment where they can interact with the local communities to know more about the city and their culture.
It offers benefits to both the hosts and guests by providing an online platform to meet their demands and helps the people to earn some additional money by sharing the extra space available on their residents. It follows the sharing economy concept and it is cost effective than booking a hotel room.
Luxury Retreats is one of the luxury vacation rental companies that offers more than three thousand luxury villas in ninety destinations around the world. The company has aimed to provide unique travel experiences and offered a high quality personal concierge service to the users.
The company was founded in the year 1999 where the founder Joe Poulin inspired by the concept of designing a rental platform for the global villa. At the initial stage, the Caribbean Way was founded to link the Caribbean rental villas with the wealthy visitors.
Acquiring of the luxury rentals
After ten years from the launch of Airbnb, the company has enlarged its services from a less expensive air mattress in an apartment to the castles and now it is expanded to provide luxury villas. The company did not announce the financial transaction for the deal and it was estimated that the cash and stock deal was nearly 200 million dollars to 300 million dollars.
According to the deal, Joe Poulin the CEO of Luxury Retreats will join Airbnb and take the lead of Airbnb’s luxury homes and it also reported that the crew of Luxury Retreats will continue to remain as Montreal-based. Initially, Luxury Retreats will operate as a stand-alone company and after that; the listings of Retreats will be merged into the own search results of Airbnb.
Investment in Montreal
Denis Coderre, the Mayor of Montreal was glad to welcome the Airbnb and also supported the act of Airbnb made investments in Montreal on Luxury Retreats. He also added that this investment proved that Montreal becomes a large metropolis that provides a path for the sharing economy. On a meet with the founders of both the companies, Joe Poulin and Brian Chesky, the Mayor said that the companies were convinced with the facilities available in Montreal.
The acquisition of Luxury Retreats will provide high quality villas and it also helps Airbnb to achieve its goal of providing different kinds of lodgings and experiences to the visitors. The CEO of Airbnb has spent some time with the Luxury Retreats team and observed their passion for delivering the outstanding hospitality services in different locations around the world. The companies shared their values and Airbnb believed that the partnership would provide better results. He also added that the team members of the Luxury Retreats were having magnificent energy and skill that would helpful for the company to attain their mission and also for the development of the community.
Future of the company
Luxury Retreats will operate as a separate firm and all the members of the company, which is nearly 250 employees, will join the Airbnb community and proceeds to focus more on providing quality listings. Both Luxury Retreats and Airbnb expected to continue their investment in the Montreal workplace by adding extra resources and employees to the team in Canada in the forthcoming years.
Airbnb has made changes dramatically in the field of global hospitality and it provides a platform to connect the energetic community of guests and hosts. It also gives an immense amount of distinctive travel experiences to the travelers or guests. The CEO and Founder of Luxury Retreats Joe Poulin stated that the Airbnb’s future goal, values, and methods have resembled the focus of the Luxury Retreats from its launch. He also added that the crew was excited to integrate with the Airbnb family to provide best class and luxury experiences with the continued dedication.
The business deal shows the increasing competition in the hotel accommodation and travel booking industry as the competitors are highly focusing on the expansion of their services beyond their crucial businesses. Airbnb has a private market value of thirty billion dollars and typically dominated in the metropolitan rentals, is introducing a new product into its services. Airbnb also plans to launch other new services such as trip planning and flight booking and the launch will be held on this year.
Growth of Airbnb in luxury services
The business rival of Airbnb is Expedia Inc., which is developing a network after the series of acquisitions that includes the 3.9 billion dollars purchase of HomeAway, a vacation rental site and its brands such as VacationRentals.com and VRBO.com. When compared to the bookings done through the Airbnb booking site for few days, the bookings made through the vacation rentals of the kind VRBO.com were significantly higher and it was because of the longer stays provided by the site at larger properties.
Airbnb was initiating their first move in the part of providing luxurious services and there are many opportunities available for the company to develop in that market. It was observed that the property managers were showing less interest in display their homes on Airbnb’s site than with VRBO or HomeAway and it showed that there are many rooms are also available for the growth of the company.
The business deal between the companies will satisfy to the minimum of nearly fifty thousand dollars for every property listed by Luxury Retreats, a huge amount of price must pay without knowing any relevant facts. But, the Airbnb bought the list of homes along with the expertise of Montreal company in the field of high-end travel. Luxury Retreats will also get profit from this agreement and will be accretive immediately to the Airbnb’s revenue and margins.
Airbnb is not entering into the luxury market alone as many of its rivals had already announced their involvements in this field. Airbnb contains an excellent booking platform and even they maintain a good customer relationship, but the company was failed to maintain the consistency. The current problems faced by Airbnb in Barcelona, New York, Miami, and Paris are indicating the challenges and the firm has to take more efforts to withstand and enhance their core vacation rental service. In order to retain its position in the market and also to counteract to its rival companies like VRBO and HomeAway, Airbnb has made a perfect move.
Author Bio : Anand Rajendran is the Co-Founder and CEO of Zoplay,a best android apps development company in Chennai. As a digital marketer, his main objective is to create new apps with latest coding scripts. The Renter Software Script available from his company is mainly meant for Ios and Android users which is also Airbnb clone script.