Should Boutique Hotels List on Airbnb?

Introduction

Many boutique hotels are wondering if they should list their rooms on Airbnb. The obstacles and adjustments are just too much for some hotels, but the channel is now so massive that nearly every hotel should investigate it as a distribution channel. This topic keeps coming up when we speak to boutique hotels, so we thought it was time to take a fresh look at this channel and write a comprehensive guide to clarify some misconceptions and nuance - and also to illustrate some of the tradeoffs.

Airbnb’s rise has transformed online distribution in hospitality, with millions of travelers turning to the platform for unique stays. In fact, Airbnb saw 448 million nights booked in 2023, a nearly 14% jump from the previous year. This massive user base means potential guests you might otherwise miss. Many travelers – especially younger ones – are skipping traditional OTAs (Online Travel Agencies like Booking or Expedia) and searching only on Airbnb. A recent survey found 64% of Americans planned to rent vacation homes in 2023, and 85% of those travelers favor Airbnb for booking. The number of page views is often twice as much as Expedia and Airbnb is now comfortably in the top travel websites in the world with millions of people looking for lodging. With such consumer behavior trends, visibility in OTAs and alternative channels has become a crucial part of hotel marketing.

For boutique hotel owners and managers, the prospect of listing on Airbnb presents both opportunities and challenges. On one hand, it’s a chance to tap into new demand and boost revenue. On the other hand, it requires thoughtful revenue management, operational adjustments, and a strategy to maintain your brand’s identity. This post explores key considerations – from testing the waters, to channel management and pricing strategy – to help you decide if Airbnb is right for your boutique hotel.

Test the Waters Before Fully Committing

Jumping onto a new platform can be daunting, so consider testing demand on Airbnb before going all-in. Instead of listing your entire room inventory immediately, start with one or a few rooms or offer specific dates to gauge interest. This pilot approach lets you measure how much incremental demand Airbnb can generate for your hotel without over-committing resources. For example, you might list a particular room type during off-peak periods to see if Airbnb brings in new guests you wouldn’t get otherwise. Track the inquiries and bookings you receive. Are you attracting a different demographic or longer stays?

Airbnb’s audience skews toward travelers seeking local experiences and often longer trips. In fact, the average stay on Airbnb is around 5–7 days, versus 2–3 days on traditional OTAs. Some boutique hotels have seen benefits from this: one 10-room boutique hotel in Sedona reported its average length of stay jumped 40% after listing on Airbnb, thanks to families and remote workers booking week-long stays. Testing the waters will reveal if there is sufficient demand for your property on Airbnb and how it fits into your overall hotel pricing strategy. If you find that weekends or certain seasons get strong Airbnb interest, you can gradually open more availability there. On the other hand, if uptake is slow, you can adjust your approach (or decide Airbnb might not be worth heavy investment). The key is to experiment in a controlled way. This lets you learn about Airbnb’s impact on your bookings while minimizing risk. Before long, you’ll have data to inform a broader strategy – all without compromising existing channels.

Prepare for Extra Operational Work

Be prepared: listing on Airbnb isn’t “set it and forget it.” It often comes with extra work and operational challenges compared to traditional bookings. Airbnb guests tend to use the platform’s messaging system heavily – asking questions before booking, requesting recommendations, or coordinating check-in details. Your team will need to monitor and respond to inquiries promptly (Airbnb even tracks response rate). This can mean retraining front desk or reservations staff to handle an always-on communication channel. Unlike OTA bookings that go straight to your PMS with minimal interaction until check-in, Airbnb encourages a more personal, host-like approach. Fast, friendly communication is crucial for good reviews.

Managing check-ins and check-outs may also require adaptation. Many Airbnb travelers expect flexible or self check-in. If your boutique hotel has a 24-hour front desk, highlight that as a strength (no fumbling with lockboxes at midnight). But also ensure the check-in info is clearly communicated through Airbnb. Additionally, Airbnb guests will review their stay publicly on the platform. Consistently high ratings are important for visibility in Airbnb’s search algorithm, so delivering on promises is critical. Little operational details – like placing a welcome note in the room or being responsive to mid-stay requests via the app – can make a big difference in reviews.

Back-of-house, coordinating housekeeping for Airbnb stays might need tweaks. Airbnb allows hosts to charge a cleaning fee, but hotels typically build that into nightly rates. You might decide to forego a cleaning fee for one-night Airbnb bookings (to stay competitive for short stays) but charge one for longer stays to cover the extra cleaning – that’s a new type of pricing decision for your revenue management team to consider. Also, be ready for some operational challenges unique to Airbnb, such as resolving guest disputes through Airbnb’s Resolution Center or dealing with damage claims via Airbnb (which has its own process different from a credit card incidentals hold). All of this is manageable, but it adds a layer of work. Going in with eyes open and training your staff on Airbnb’s system will set you up for success.

Hotel Channel Management and Software Integration

Before you dive into Airbnb, one vital question: does your channel management software support it? Keeping your availability and rates in sync across all channels is essential. Double-booking a room because you forgot to manually close it on Airbnb is the last thing you want. Fortunately, many hotel channel management platforms now integrate with Airbnb as a standard channel. For example, SiteMinder – a popular channel manager for boutique hotels – offers direct Airbnb connectivity. Airbnb itself has partnered with channel managers like SiteMinder to onboard hotels and B&Bs onto the platform. Check with your provider if an Airbnb connection is available and how it works. In most cases, you’ll be able to manage Airbnb reservations through your property management system just like bookings from OTAs. This integration will push your updates on rates and inventory to Airbnb in real time, reducing the risk of conflicts.

Also consider how Airbnb fits into your broader online distribution strategy. Airbnb’s commission model for hotels can differ from typical OTAs. Some reports indicate Airbnb’s host commission (around 14-16% for hotels using software integration) can be comparable or even a bit lower than the 15-20% that OTAs charge. This means you keep more of the revenue, which is a plus for your bottom line. But you’ll want to set up Airbnb as its own channel in your revenue management system to ensure you’re tracking production and adjusting strategy accordingly.

Another technical consideration is pricing strategy across channels. Airbnb allows more flexible pricing tools (weekly/monthly discounts, cleaning fees, etc.) that your revenue manager can use to optimize income. Ensure your hotel pricing strategy on Airbnb aligns with (or deliberately diverges from) other channels. It might make sense to offer a slight discount for longer stays on Airbnb to entice those bookings, while keeping nightly rates consistent with OTAs for short stays. The goal is to manage distribution holistically. With proper channel integration and clear strategy, Airbnb can become a seamless part of your distribution mix rather than a siloed experiment.

Finally, verify that your tech stack supports the communication side too. Some channel managers or PMS integrations will funnel Airbnb messages into a unified inbox for your staff, which can be extremely helpful. If not, decide who on your team will be logged into the Airbnb dashboard to handle day-to-day guest communications. Having the right software support makes listing on Airbnb far less daunting and ensures you maintain control over inventory and pricing across all channels.

Stay True to Your Boutique Brand Identity

One of the biggest mistakes a boutique hotel could make on Airbnb is trying to morph into something you’re not. Do not change your brand identity to fit Airbnb’s typical audience. Yes, Airbnb began as a home-sharing platform with a casual, local vibe. But that doesn’t mean you should downplay your hotel’s brand personality or professionalism. In fact, many travelers on Airbnb are now looking for boutique hotels and unique inns – Airbnb even has a “Boutique Hotel” category for guests to browse. Embrace what makes your hotel special. Use your Airbnb listing to tell your story: the design, the history, the personalized service. High-quality photos are a must (as with any channel), and it’s perfectly fine if they look more polished than a typical homestay listing. That’s part of your appeal.

Boutique Hotels have personality

Don’t feel compelled to use overly informal language or emoji-filled host bios if that’s not your style. It’s better to be authentic and convey the experience guests can expect. For instance, if your boutique hotel’s identity is a chic, art-inspired retreat, make sure your Airbnb listing highlights that creative atmosphere rather than, say, pretending you’re a “homey family cottage.” Travelers are savvy; they appreciate honesty. Also, avoid appearing desperate to get bookings. Position your property as a unique niche offering on Airbnb, not a hotel that’s on Airbnb because it can’t sell rooms elsewhere. This means resisting the urge to slash prices to rock-bottom or to imitate the hosting style of casual Airbnb hosts. Instead, project confidence in your uniqueness: “We’re a 10-room boutique hotel offering the charm of a B&B with the professionalism of a hotel – now available on Airbnb for those who want the best of both worlds.”

By staying true to your brand, you’ll attract the right kind of guests – those who seek the boutique hotel experience but happen to be searching on Airbnb. Remember, brand consistency builds trust. Many guests will check out your hotel’s website or external reviews even if they find you via Airbnb. If your Airbnb presence matches your established reputation, it creates a seamless image. On the flip side, if you try to contort your identity to fit what you think the Airbnb crowd wants, you risk confusing customers or delivering an experience that feels “off” from what was advertised. So keep your logo, your tone, and your values front and center. Airbnb may be a different channel, but it’s still your hotel being sold.

Highlight Full-Service Advantages

One major edge boutique hotels have over typical home rentals is the range of full-service amenities and professionalism you bring to the table. Don’t shy away from this – highlight it! Many Airbnb users will appreciate the added convenience and safety of staying at a real hotel, even as they browse for unique accommodations. Make sure your listing description and photos showcase what sets your property apart from a standard Airbnb. Do you have a 24-hour front desk or on-site concierge? Emphasize that guests can check in anytime without hassle, or get local tips from knowledgeable staff. Do you offer secure access, daily housekeeping, room service, or an included breakfast? These are valuable amenities that many home shares can’t provide.

Hotels are more than just a room

Safety and reliability are big selling points, especially for travelers who might be on the fence about Airbnb. Some guests have heard horror stories of hosts canceling last minute or accommodations not as advertised. Your hotel can offer peace of mind: professional standards, licensed operations, and consistency. Point out that guests get the best of both worlds – the charm of a boutique stay with the trust and comfort of a hotel. For example, mention things like on-site dining or a cocktail bar (“Enjoy craft cocktails in our lobby lounge before strolling the neighborhood”), or the fact that your property is professionally cleaned to hotel standards (especially in a post-2020 world of heightened cleanliness awareness).

Another advantage is on-site support. If something goes wrong in a home rental, a guest might struggle to reach an absentee host. In your case, you have staff ready to assist 24/7. Make it known in your Airbnb profile that help is just a phone call or front-desk visit away. This can be very reassuring. Also consider leveraging amenities like a gym, spa, or even co-working space if you have them, since an increasing number of remote workers and “workcationers” use Airbnb. A traveler may filter for “Wifi” on Airbnb – you can go beyond by highlighting high-speed internet and a comfortable workspace in-room or in your lobby.

Professionalism is a theme you can weave into your reviews as well. Encourage guests who book you on Airbnb to mention what they loved (many will do this naturally). Future browsers will see comments about how “the boutique hotel staff were incredibly helpful” or “the included gourmet breakfast was a treat” – differentiators that set you apart from the average listing. In short, play to your strengths as a boutique hotel. Amenities, safety, and service are your trump cards on Airbnb; make sure every potential guest knows it.

Don’t Underprice – You Offer More Value

When it comes to pricing on Airbnb, it might be tempting to undercut the local Airbnb hosts or set rock-bottom rates to attract bookings. Resist that urge. Do not underprice your rooms – remember that as a boutique hotel, you offer more value than a spare bedroom in someone’s house. Guests will pay for that value if you communicate it well (as discussed above). Pricing strategy should reflect the quality, location, and service you provide. In fact, many travelers on Airbnb are willing to pay a premium for a unique stay or added convenience. Data shows that while Airbnb is often cheaper for large groups, for couples or solo travelers hotels can be competitive. As of early 2024, the average one-bedroom Airbnb was about $114/night (including fees), whereas a hotel room averaged $140/night. Hotels generally charge more because they offer more – and boutique properties often justify a higher rate with distinctive design and amenities.

That said, you should craft your hotel pricing strategy on Airbnb thoughtfully. Look at comparable listings in your area – not just other hotels (which may be few on Airbnb), but high-end rentals, B&Bs, or serviced apartments that compete for the same guest profile. Position your price to signal quality but still remain attractive. Avoid the pitfall of heavy discounting that could devalue your brand or make you seem “desperate” to fill rooms. Keep in mind also that Airbnb’s fee structure is different: typically, the guest sees a total price with Airbnb’s service fee added on top. If you set your rate too low and then a guest sees only a small difference between your boutique hotel and a private rental after fees, they might wrongly assume your place is lower-end. Price confidently and emphasize what’s included (e.g., “Rate includes breakfast and daily housekeeping”).

From a revenue management perspective, treat Airbnb like any other channel where you aim to maximize RevPAR (Revenue per Available Room). If demand from Airbnb guests is strong, you might even yield higher rates during peak periods. Some boutique hotels use Airbnb to capture premium bookings for unique suites or penthouse rooms, which can fetch top dollar from Airbnb’s audience looking for special occasions. The key is not to undervalue yourself. Remember that your hotel likely has higher operating costs than a casual host (staff wages, insurance, compliance, etc.), so your pricing needs to sustain that. Boutique hotels offer more value than standard Airbnb listings, and your pricing should confidently reflect it.

Airbnb = Visibility to New Guests (A Blue Ocean Opportunity)

Perhaps the most compelling reason for a boutique hotel to be on Airbnb is visibility. Airbnb has a massive, devoted user base — many travelers now only search for accommodations on Airbnb and never even check traditional OTAs or hotel websites. By not being on Airbnb, you could be invisible to a large segment of potential guests. Consider it a marketing play: Airbnb exposes your property to travelers who might never find you otherwise. In the U.S., Airbnb commands roughly 80% of the vacation rental market traffic. It’s become so prevalent that even big hotel chains have taken notice of overlapping demand. By listing on Airbnb, you are fishing where the fish are. Guests planning a trip might open the Airbnb app before anything else; if your boutique hotel isn’t there, you simply won’t be part of their consideration set.

This is where a bit of Blue Ocean Strategy thinking comes in. Blue Ocean Strategy in business is about finding untapped market space rather than fighting competitors in the same red waters. For boutique hotels, Airbnb can represent a sort of blue ocean – an uncontested space to reach new customers. If your competitors (other local boutique hotels or inns) are not yet on Airbnb, you have an opportunity to capture that audience first. You’re not trying to outbid rivals on OTA listings or Google ads; instead, you’re creating a presence in an arena where few traditional hotels operate. By positioning your offering uniquely on Airbnb, you attract travelers seeking alternatives to the mainstream, without directly competing on the same platform as every other hotel.

That said, positioning is important. You want to come across as a hidden gem, a special find on Airbnb – not as a hotel that’s only there because it’s struggling. Craft your profile and title to highlight uniqueness (e.g., “Historic Boutique Hotel with Modern Luxury – Downtown Location”). Embrace that you’re different from the typical Airbnb home, and turn it into a selling point. This approach can make your listing stand out in a sea of homogenous rentals. Guests scrolling Airbnb could see your professional photos, read about your amenities, and realize they can have a boutique hotel experience through the convenience of Airbnb. You’re essentially creating your own niche on the platform.

Keep in mind, Airbnb’s algorithm and audience reward good hospitality. If you deliver a great experience and earn strong reviews, your visibility will only increase. Over time, your boutique hotel could become a top-ranked option in your area on Airbnb, capturing a steady stream of new guests without directly sparring with other hotels. In an era when visibility in OTAs and online channels is fiercely competitive, Airbnb offers an alternate path to reach customers. It’s not about abandoning other distribution channels, but about expanding into fresh territory – your “blue ocean” – where you can sail ahead of the pack.

Next Steps: Finding the Right Balance

So, should boutique hotels list on Airbnb? The answer for many is yes – but do it thoughtfully. Airbnb can be a powerful additional channel to maximize revenue and occupancy, provided you maintain control over your brand and operations. Start by testing the waters and ensuring you have the tech (like SiteMinder integration) to handle another channel smoothly. Train your team to manage the extra communication and embrace the opportunity to wow guests with your full-service offerings. When you list, stay authentic to your boutique identity and don’t undervalue your property – price for the value you deliver. Remember, the goal is to tap into Airbnb’s vast audience without diluting what makes your hotel special. If executed well, listing on Airbnb can open the doors to a new pool of guests and incremental revenue that traditional channels might miss.

Ultimately, Airbnb is a tool – one of many in your channel management and marketing toolkit. Use it strategically. Monitor the results, adjust your pricing and distribution tactics as needed, and continue to provide the excellent, personalized hospitality that defines boutique hotels. By doing so, you can turn Airbnb into a complementary revenue stream and a source of brand-new loyal guests who discovered you in that “blue ocean” of alternative lodging.

For more insights on maximizing boutique hotel revenue, visit ResortIncome.com.