Arik Kislin, Owner of Gansevoort Hotel, Discusses How Airbnb Affects Luxury Hotels

Joel Sonreir
Jul 27, 2017 · 2 min read

Hospitality is a Growing Market

“We’ve always believed that for us to win, no one has to lose,” said Nick Papas, director of public affairs PR at Airbnb, in 2016. “Hospitality is a large, growing market, and we think there’s a place in this market for everyone.”

Arik Kislin’s Gansevoort Hotel Group Pool on Rooftop of Gansevoort Meatpacking in NYC

Whether or not this is true remains questionable, according to co-owner of the Gansevoort Hotel, Arik Kislin. Hotel owners like Kislin point out that since Airbnb was founded in 2008, it has been often cited as disrupting the hotel industry. Here are some shocking Airbnb stats from 2016:

  • There are 2.3 million Airbnb listings, with 43,000 in NYC alone
  • Airbnb is currently active in about 65,000 locations, with about 500,000 guests per month
  • The average cost of an Airbnb is about $80 per night
  • Airbnb profits are expected to top $3 billion in the next three years
  • Demographically, in 2015, 88% of Airbnb’s reservations were for groups of two to four people
  • 60% of reservations were for the entire home or apartment.

9% Would Stay in Hotels if AirBNB Didn’t Exist

The most interesting stat, though, is that from 2015 to 2016, there was a 9% jump in the amount of people reporting that they would have stayed in hotels on their vacations if Airbnb didn’t exist. In other words, about 49% of Airbnb demand comes from potential hotel-stayers.

I had the opportunity to sit down with Kislin to discuss this changing market.

“What I’ve seen is good news for hotels rated 5-star and higher,” said Kislin.

AirBNB Not Affecting Luxury Hotels

“Airbnb does not seem to be affecting luxury hotels, so hotels like the Gansevoort, Baccarat, Four Seasons, St. Regis, and others don’t have much to worry about. Rather, it’s the four-star-and-below hotels that seem to be taking the hit, since Airbnb and four-star-and-below hotels compete for the same demographic — millennials and other low-cost travelers — in a scene that five-star hotels are not involved in. This is why Marriotts and other four-star-and-below hotels were affected by the 2008 economic crash, but not the five-star ones.”

In other words, while Airbnb and non-luxury hotels may battle for clientele, luxury hotels sit safely on the sidelines. This is a phenomenon that may be contributing to non-luxury hotels catering to the audience they are trying to attract in interesting ways, such as incorporating breweries, unique layouts, and digital services into their building designs. The long-term effects of the relationship between Airbnb and hotels is yet to be seen.

You can follow Arik Kislin on Twitter and Facebook.

Joel Sonreir

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Writing About Cool People, Entrepreneurs, Startups, Successful Business Owners, and Philanthropists.

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