Meet the Hospitality CEO Who Embraces Airbnb
Skift Take
In addition to dreaming up new hotel brands, we're surprised more hotel companies aren't thinking of launching more of their own serviced residence brands — or buying up others.
Even as more hotel companies like Marriott, Hyatt, and AccorHotels are entering the homesharing space, the traditional hotel industry has generally been at odds with the homesharing giant Airbnb.
But for one hospitality CEO, Airbnb isn't a foe — it's a partner, and a crucial key player that can help him and his industry — the serviced apartment sector — continue to grow.
Larry Korman, president of Philadelphia-based AKA and co-CEO of Korman Communities, described his own brand, AKA, as one that "balances the intimate services of the boutique hotel with the spaciousness and comfort of a luxury condominium." But he said it can often be challenging to not only distinguish the differences between serviced residences and other types of accommodations, but to also have consumer awareness of the category.
[caption id="attachment_295200" align="alignright" width="185"] Larry Korman, president of AKA and co-CEO of Korman Communities. Source: AKA[/caption]
"People in Europe and Asia understand that [serviced residences] concept, but Americans really want two, three days to a place," Korman explained. "They'll stay at a Four Seasons or a Marriott and then they'll come home. Whereas Europeans, they'll go to a place and stay for two weeks, or stay for a month, to get to understand the spirit of the neighborhood, of the culture, and live like a local."
That whole concept of living like a local, as Airbnb and other platforms have so heavily marketed, is what makes the serviced residence business so well positioned to take off, Korman said. "I think what Airbnb has done that has helped is, sort of, introduce Americans domestically to the advantages of a residence versus a room," Korman said.
To that end, Korman said, "Let's embrace Airbnb, not battle them. Let's acknowledge that there was a disruptive element. And let's see how we can make it a positive."
In fact, privately held AKA is Airbnb's founding partner for serviced residences in North America in the upscale/luxury segment.
Skift recently spoke to Korman to discuss the serviced residence sector, from the influence and impact of Airbnb on the business, to the challenges it faces in terms of perception and distribution. Here's what he had to say:
Airbnb's Influence on the Serviced Apartment Sector
In 2008, the global economy crashed and, coincidentally, Airbnb debuted
