Airbnb’s Distribution Strength Could Pressure Online Travel Giants and Woo Hotels
Photo Credit: Guests arrive at an Airbnb-booked short-term rental. Airbnb has built its brand over a decade by standing apart from the traditional hospitality industry. But its IPO prospectus suggests it may have to change. Airbnb
Skift Take
The typical Airbnb review talks up a rental's charms while overlooking vital information. The company's stock prospectus similarly skips some key details for understanding its business. But we can still infer a few things about the distribution dynamo.
Airbnb's stock market prospectus has offered a window into its distribution power. But the company may have to act strategically to avoid having its distribution power watered down over time.
"Airbnb is more than just a distribution channel," said the San Francisco-based startup in the paperwork it filed on Monday for a planned initial public offering. But Airbnb's numbers highlighted that its key profit generating power is as a distribution platform for property rentals, its main inventory.
Airbnb has a global reach as a distributor. In 2019, 63 percent of its revenue came from listings outside of the U.S. That made it more global as a share of revenue than Expedia Group, which only generated 43 percent of its $12 billion in revenue last year from outside the U.S.
Airbnb has so far avoided outsourcing most of its work as a middleman, keeping its costs down. But the company is expanding from serving leisure and self-managed business travelers to serving the luxury and corporat
