As the travel industry continues to grow, so does the online accommodation booking platform, Airbnb, with two million guests having arrived at listings on Airbnb in South Africa since its founding, and 3.5 million guests at listings across Africa, with roughly half of these arrivals occurring in just the past year. With this in mind, there is a growing concern amongst the hospitality industry and where it fits into the sharing economy.

The African continent features three of the top-eight fastest growth countries for guest arrivals on Airbnb, Nigeria, Ghana and Mozambique, respectively. This growth is mainly generated by guests seeking a different travel experience.

Tim Smith, Managing Director of global hospitality consultancy, HVS, says some hoteliers feel threatened by Airbnb but, in reality, he does not believe there is anything to be concerned about. He adds that hoteliers should be pleased with the publicity it is bringing to the sector.

Velma Corcoran, Country Manager for Airbnb South Africa says: “Airbnb is transforming how guests experience South Africa and is opening new economic opportunities for local families and their communities. We want to be good partners to everyone in the country and support the responsible and sustainable growth of innovative forms of tourism.” 

Airbnb is complementary to the traditional accommodation sector as roughly three-quarters of its listings are outside the main hotel districts, giving everyday people the chance to travel to cities and neighbourhoods they might otherwise miss, and disproportionately bringing economic benefits to communities that typically have not benefited from tourism.

Eight in ten guests choose the Airbnb platform to explore a specific neighbourhood and two-thirds choose Airbnb as they believe the environmental footprint is smaller while the benefit to the local economy higher.

Of travellers who have used Airbnb, 31% have said they would have stayed at home, or not have stayed the duration they did if it was not for Airbnb. Therefore, as a rule, guests stay longer and spend more money.

In general, Airbnb has seen that the hotel industry continues to experience strong, sustained growth despite the rise in home sharing.

In South Africa, the typical listing is booked for just 17 nights a year, fewer than two days a month.  Hosts here are not typically professionals; they are people sharing space in their home or their entire place while they are away. There are, however, many different accommodation providers on Airbnb, including home sharers, boutique hotels and traditional bed and breakfasts.  

In February, Airbnb unveiled its roadmap for bringing authentic, local and people-powered travel to everyone. The plan included several new products and services, including Airbnb Plus, an elevated tier of homes verified for comfort and quality; improved search and new property types to help guests easily discover the right listing; and even greater choice in listings like boutique hotels. Within the first month, over 1 100 traditional hospitality providers, including boutique hotels and B&Bs approached Airbnb about sharing their space on the platform.

According to Smith, there will always be a market for hotels, as travellers have different accommodation requirements. “Business travellers will continue to want hotels, for service, security and loyalty points at the company’s expense. Leisure guests will look for more space but how many of them would have stayed in a hotel is debatable.”

Smith continues: “What is not debatable is that for too long African hotels have not provided the accommodation that all travellers want or need so new concepts like Airbnb, Stay at Once, mid-market hotels and serviced apartments are all starting to address those issues.”

“Every time a guest visits South Africa using Airbnb, local families and their communities benefit. Last year, the Airbnb community generated an economic impact of $678 million and supported 22,000 jobs across South Africa,” adds Corcoran.

Adults over the age of 60 have taken to Airbnb in recent years to utilise unused space in their homes, to meet new people and learn about different cultures, or as an additional source of income or to supplement their pensions. The year-on-year growth for senior South Africans becoming hosts is 39.37% (September 1, 2017-September 1, 2018) – making them the fastest growing host age group in the local market.

Hospitality is a growing market that Airbnb strongly believes is helping more and more people to travel, something that is good news for the industry at large.