Arkansas Democrat-Gazette

Airbnb plans premium tier to rival hotels

Sources say pilot program to include home inspectors

- OLIVIA ZALESKI

Airbnb is close to launching a new service that will match guests with qualityins­pected home and apartment rentals.

The product is intended to attract higher-paying travelers who have yet to use Airbnb because they prefer the amenities guaranteed by fancy hotels, said three people familiar with the project.

The service, expected to launch as a pilot with a select group of hosts, will send Airbnb inspectors into hosts’ homes to ensure they meet a checklist of quality standards designated by the company, said two of the people. If the homes pass the inspection they will be eligible for a featured section of Airbnb’s website and mobile apps, they added.

The company has been encouragin­g hosts to behave more like hoteliers, but this is the first time premium rooms will be packaged into a distinct product with official inspection­s and incentives for participan­ts. The service is internally referred to as “Select,” but the people said an official name has not yet been determined. They asked not to be identified discussing an unannounce­d product. The full service could launch by the end of 2017. Airbnb declined to comment.

Offering a premium selection of rentals may help Airbnb lure older and wealthier travelers, who’ve been hesitant to book on the homesharin­g platform because they believe it’s less polished than a luxury hotel room, said the people. These users present a potentiall­y new lucrative revenue source for the 9-year-old startup, which began as a couch-surfing website for cost-cutting millennial­s. Airbnb takes a percentage of the cost of each booking, so more-expensive inventory may support revenue growth and help justify the privately held company’s $31 billion valuation.

The new program may also concern hotel chain operators, such as Hilton and Marriott. They have lost some lower-end customers to Airbnb and other homesharin­g services, while most luxury and business guests have so far kept booking.

“With Airbnb expanding its services to improve travelers’ experience by including hotel-like features,” Bloomberg Intelligen­ce analysts wrote recently, “it may be able to attract a wider customer base.”

Airbnb is expected to invite a select group of hosts to participat­e in the new service, said the people. If they accept, the hosts will be visited by an inspector who will determine if the homes meet requiremen­ts ranging from new and matching bed linens to plush towels and single-use toiletries typically found in hotel bathrooms, they said. Premium homes would also be vetted for working appliances and a host’s commitment to stock the home’s kitchen with bottled water and a selection of teas and coffee, similar to

hotel offerings.

A screenshot of a website Airbnb plans to send to a select group of hosts references the new service. “Congrats!” it

reads. “Your reviews for high consistent quality have qualified you for a special pilot program.”

The page said hosts should take part because they will receive “priority placement in a new section for premium places.” Hosts who

participat­e get access to a profession­al photograph­er who would take pictures of the home for Airbnb, along with other free perks like a consultati­on with an Airbnbprov­ided interior decorator, said two of the people familiar with the program.

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