Airbnb Instant Booking

Airbnb and Instant Booking: a Recipe for Market Domination - The Online Citizen

Excerpt from The Online Citizen

Airbnb knows how to make waves in the accommodations booking industry. Over the last few years, the San Francisco-based company has taken major market space away from more conventional hotel booking sites like and, and it looks like the company has once again invented a new technique that will add to its already considerable momentum.

The new “Instant Book” feature allows users to secure their vacation home, apartment or condo with just one click. So what does the combination of Airbnb and instant booking mean for the travel industry? Most significantly, even more travelers are making the shift to Airbnb.

Instant Book

Airbnb’s ‘Instant Book Trend’ could lead to travel market domination. The company has seen significant growth over the past few years, scaling from 800,000 total units in 2014 to over 4.1 million active listings today.  Though Airbnb’s top line growth remains healthy at 24.3% (3.3 million listings in 2016 to 4.1 million listings today) we’re seeing a reduction in growth as they reach market saturation.

The company has shifted to a focus on instantly bookable inventory and this shift could position Airbnb at the top of the market. There are several reasons for this, and we are going to take a look at what this trend means for the overall travel industry. So, will Airbnb dominate the market in the near future?

So what does this mean?

Firstly, the instant book trend will lead to an improved online conversion rate – instead of going back and forth with homeowners, users can instantly book a room, making the process incredibly simple.

Airbnb will begin operating more like an OTA (like or Expedia where you can immediately book online). It also allows a pathway for hotels to list their properties on Airbnb — there are currently over 75,000 hotels listed on Airbnb (this is compared to Expedia’s 367,000 and’s 471,000). It’s likely the number will continue to grow.

Airbnb will up-rank instant book inventory over the non-instant book inventory, meaning that homeowners will be keen to advertise their vacation rental as an instant book, in order to see better results. In turn, this will crowd out the rest of the market. If you’re listed as instantly bookable on Airbnb, you really can’t be instantly bookable on other vacation rental sites like HomeAway, and TripAdvisor.

If Airbnb is driving the majority of traffic and revenue to the properties, loyal users of traditional vacation rental sites may turn their backs on the sites, so they can be only available for bookings through Airbnb.

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