Airbnb is expanding its hotel strategy to sit alongside home rentals, integrating HotelTonight’s last-minute booking technology into the Airbnb app and partnering mainly with independent and boutique hotels.
The move aims to capture bookings in high-demand markets that might otherwise flow to online travel agencies, while appealing to travellers—especially on business travel—who prioritise predictable amenities.
Integration of hotels and homes in the Airbnb app
The 2019 acquisition of HotelTonight laid the groundwork for same-day and short-notice hotel deals inside Airbnb.
After a pandemic pause, the company has folded that functionality into a single interface where users can compare and book homes and hotels together.
The unified flow is designed to keep users from switching sites when a suitable home is unavailable, strengthening Airbnb’s hotel strategy and visibility for searches such as “last-minute hotel deals” and “boutique hotels”.
Focus on boutique supply and new distribution for hoteliers
Rather than compete head-to-head for large chains, Airbnb is courting independent hotels, boutique properties and family-run accommodation that align with its “local experience” positioning.
For hoteliers, the listing pathway offers a fresh distribution channel to Airbnb’s global audience, which can help during softer periods to lift occupancy without joining a major brand network.
The approach is intended to broaden choice across price points and service levels while maintaining the distinct character that differentiates smaller properties.
Implications for hosts, OTAs and regulation
For hosts, especially those offering private rooms or studios, the presence of boutique hotels on the platform raises competition.
Successful hosts are focusing on differentiation—authentic design, neighbourhood insight and personalised touches that hotels struggle to replicate at scale. For online travel agencies such as Booking.com and Expedia, Airbnb’s expanded hotel inventory intensifies rivalry for high-intent queries and last-minute bookings.
Stricter short-term rental rules in some cities have pushed a share of demand back to hotels. By blending homes, hotels and “Airbnb Experiences” within one search, Airbnb can adapt supply to local regulations while aiming to retain users inside its ecosystem.
The result is a clearer—if more crowded—market in which hotels, hosts and platforms compete on consistent service, value and the ability to stand out in search.
