Is Airbnb Hotel Business Now? Should OTAs be Worried?
What happened?
During the company’s third-quarter earnings call, CEO Brian Chesky confirmed that Airbnb has officially begun piloting its new hotel business in New York City, Los Angeles, and Madrid.
This move was widely anticipated. A couple of months ago, Chesky announced that Airbnb was preparing to introduce a new hotel-focused booking interface within the app. The pilot now shows that the company has moved from concept to early execution.
On top of that, there are talks that Airbnb is working on “something big” in the loyalty category, which largely suggests that a loyalty program may be on the horizon, possibly connected to the company’s broader hotel strategy.
What do we know so far about Airbnb’s future with hotels?
Chesky said that Airbnb views its hotel segment as a potential multibillion-dollar business, just like its Experiences and Services offerings.
Further evidence arrived in October 2025, when Skift reported that Airbnb had posted roughly 180 job openings related to hotel operations and management. These roles were spread across the US, Mexico, Canada, Europe, the Middle East, and Africa.
A hiring wave of that scale suggests that Airbnb is preparing for a large and coordinated global expansion, rather than a small experiment, right?
Chesky also revealed that Airbnb will introduce a separate hotel tab in the app, which will appear alongside other offerings under what might be a newly named “Stays” section.
Will Airbnb offer popular hotel brands on its app?
No, so far the plan looks different.
The company is instead targeting small, independent, and boutique hotels, especially in areas where there are not enough home rentals to meet demand. This includes boutique hotels with up to 50 rooms, family-run inns, and small locally owned hotels that operate on a more personal, community-connected model.
Many of these smaller businesses rely heavily on third-party resellers to fill rooms, making Airbnb an appealing channel thanks to its established brand and global reach.
Additionally, Airbnb is leveraging its lower distribution costs, as its commission is about 15 percent, while traditional OTAs can charge as much as 30 percent.
So far, the company has not shared any additional details. But if Airbnb is preparing to offer hotels at scale, it would not be surprising to see a loyalty program as part of that transformation.
Will Airbnb launch a loyalty program?
Most likely, yes, just not right away.
Chesky has spoken about Airbnb’s plans to create a loyalty program, calling it a major initiative that is still in the works.
According to Airbnb’s management, the program will not simply copy traditional hotel reward systems built around earning and redeeming points. Instead, they want to design something more distinctive and better aligned with how guests use Airbnb.
Chesky also noted that a loyalty program could help the company improve customer retention, encourage more bookings, and make Airbnb more competitive against OTAs and big hotel chains that already use established loyalty programs to win customer loyalty.
Is Airbnb setting out to compete with big OTAs and hotel chains?
Yes, this is clearly part of their long-term strategy.
Airbnb wants to keep travelers on its platform even when a home rental is not the right fit for them. Instead of losing customers to hotel websites or other OTAs, Airbnb aims to satisfy their needs with lodging options that still align with its brand.
Although this approach will inevitably put Airbnb in competition with OTAs and hotels, the company is not trying to replicate traditional hotel booking sites. Instead, it is carving out its own niche.
As mentioned earlier, Airbnb is putting a strong focus on smaller, independent properties that offer more personalized, local experiences. These types of accommodations are often overlooked or underrepresented on large OTA platforms, and Airbnb hopes to become the go-to option for travelers seeking something more distinctive than a standard hotel stay.