Airbnb and Marriott nearly signed an in-depth partnership agreement around 2015

Airbnb and Marriott nearly signed an in-depth partnership agreement around 2015

Airbnb and Marriott nearly signed an in-depth partnership agreement around 2015

Skift Take

Marriott might have made a great investment if it had bought a portion of Airbnb in 2015. Ultimately, Marriott chose to build its own with Homes & Villas.

Dennis Schaal

Online travel this week

During an era six or seven year ago when the big hotel chain backed American Hotel & Lodging Association was bashing Airbnb for entries that were ‘illegitimate’ and ‘often illegal’, Marriott International and Airbnb prepared the paperwork for a major partnership, according to Chip Conley, Airbnb’s former head of Global Hospitality and Strategy.

That potential Marriott-Airbnb partnership, along with Airbnb considering acquiring without, and information about Away from home make an offer alongside Airbnb to acquire Luxury Retreatswere among the news items found in Skift’s Definitive Oral History of Short-Term Rentals Part II.

Airbnb-Marriott deal

As of 2014, Conley hosted separately at Airbnb’s headquarters or met Marriott leaders elsewhere, HiltonHyatt, Starwood, intercontinental, Best western and Accor in introductory sessions.

“But with Marriott, we had very in-depth conversations and came so close,” Conley said in oral history. “Just call it distribution for now. It was a great partnership. It was a very deep collaboration. The lawyers were putting it on paper. We had reached all business points. Three weeks before it was due to be announced, Marriott decided they had cold feet. That was probably 2015 then.”

Did it include a Marriott investment in Airbnb, Marriott listing properties on Airbnb, or an Airbnb listing of properties on Marriott? Conley said nothing, and both Airbnb and Marriott declined to comment.

“But I say that to say that Marriott eventually moved toward creating their own Houses and villas product, that’s more expensive,” Conley said. “It’s understandable.”

Airbnb saw professional hosts gain market share and is considering buying Sonder

Laurence Tosi, former Chief Financial Officer of Airbnb, said in oral history that it was around 2015 or 2016 when Airbnb saw property managers steal market share from individual hosts, the company’s “soul” on the platform. “And we gave a presentation to the Airbnb board and said, ‘The rise of professional listings is real,’” Tosi said.

Tensions with individual hosts colored a potential deal to take over Sonder.

“And then at some point we looked at buying Sonder in the early days and finally decided it was a different business model,” Tosi said. And we didn’t want the conflict of our individual hosts seeing us buy a professional host because there’s a little bit of tension there, a bit of cultural tension to some extent. So in the end we didn’t do it.”

Both Airbnb and Sonder declined to comment on a potential transaction several years ago.

Airbnb buys luxury retreats and HomeAway has made an offer too

In 2017, Airbnb acquired Luxury Retreats for $224.1 million in cash and stock.

“Luxury Retreats would manage the houses and all the houses had management in them,” Tosi said in oral history. “It was a very high end excellent experience. And so we bought that because Joe Poulin, the founder, was an incredible entrepreneur and we thought he would add a lot to the management team. Second, we thought they had a really great business model and offering. And it clearly had loyalty. It has helped us scale Airbnb to a more nurtured home environment.”

Tosi said he knew there was another offer to buy Luxury Retreats, but didn’t know who it belonged to. “And actually, Away from home [which was part of Expedia Group] also bid on them,” Tosi said in oral history. “We didn’t know that then. But we were both interested in buying them. We both made an offer. I knew there was another offer, I didn’t know who it was. And we both made offers and eventually Joe sold to us and now that’s still a big part of Airbnb.”

In brief

Australia takes legal action against Airbnb

The Australian Competition and Consumer Commission has filed a lawsuit against Airbnb, alleging that the short-term rental platform misled guests from 2018 to 2021 by displaying prices up to the last step before booking in US dollars instead of Australian dollars. . That meant consumers paid significantly more for their stay when the booking was converted to Australian dollars. the guard

Edreams Odigeo now has 3 million subscribers

After announcing in late May that its Prime subscription service had reached 2.9 million subscribers who will receive discounts and promotions on flights, hotels and cars by March 31, Edreams Odigeo announced Wednesday that it has crossed the 3 million mark. The company’s goal is to have 7.25 million subscribers by fiscal year 2025.

Hopper increases its fintech offering

Hopper has added the ability to allow guests to leave their hotel for any reason after check-in when they pay a fee for that option when they book the room. That was one facet of Hopper’s expansion of its fitntech offering. skift