How rise of Airbnbs led to slow death of traditional hotels

Since the inception of Airbnbs in 2008, traditional hotels have continued to registered low to almost no profits.

AirBnBs have gained popularity among travelers who are in search of affordable accommodation, convenient locations, and the comforts of home.

Linnet Wanjugu Murage, the owner of the Hamptons Apartment in Nyeri county, said holiday homes have rapidly gained traction, becoming a menace to established hotels and traditional lodging options.

The holiday homes offer rooms at negotiable prices and grant guests the flexibility to stay for as long as they desire.

In 2021, Wanjugu ventured into the AirBnB business after transforming her own house into a holiday home.

Due to the fierce competition, Wanjugu has gone the extra mile to enhance her apartment’s appeal and attract more clients.

To provide the best customer service, she offers breakfast, laundry services, toiletries, and a chef upon request.

“Charging only Ksh3000 per night and accommodating a maximum of two visitors per room, I strive to provide exceptional value,” she said.

Wanjugu dreams of expanding her business, confident that home-sharing platforms will continue to thrive as travelers become increasingly aware of their benefits.

The rise of Airbnb has not only transformed the accommodation industry but has also paved way for other entrepreneurial opportunities.

For Wanjugu, the business has not only provided her with a source of income but also opened doors to other ventures, such as interior design.

On the other hand, James Mwangi, a traditional lodging owner in Nyeri, revealed that since the launch of Airbnb, accommodation hotels have experienced a decline in bookings.

“Our profits have significantly dwindled, with clients now opting to book holiday homes instead,” he said, noting that iconic hotels in Nyeri County, such as Outspan, The White Rhino, Treetops and Greenhill Hotel, are on the brink of closure.

James explained that he intends to convert his rooms into Airbnb units in order to prevent the complete closure of his business.

By Macharia Kiarie

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